I 


UNIVERSITY 
AT   LOS 


ANGELES 


GIFT  OF 


INTERNAL  -  REVENUE 

LAWS 

IN   FORCE   MARCH  4,  1911 


WITH  AN  APPENDIX 

CONTAINING   LAWS   OF  A  GENERAL  NATURE  AND 

MISCELLANEOUS    PROVISIONS    APPLICABLE 

TO  THE  ADMINISTRATION   OF  THE 

INTERNAL-REVENUE  LAWS 


COMPILED   UNDER  THE   DIRECTION   OF 

COMMISSIONER  OP  INTERNAL  REVENUE 


COMPILATION  OF  1911 


i        >  ,i 


WASHINGTON 
GOVERNMENT  PRINTING  OFFICE 

1911 


Treasury  Department, 

Document  No.  2601. 

Internal  Revenue. 

2 


. .     .  ■:       • •  - .         ... 

•  •      •  • • ,« 


-  •  • 


3         l 

r 

I  I 

CONTENTS. 


INTRODUCTION. 

Page. 

List  of  Commissioners  of  Internal  Revenue  (1862-1910) 9 

List  of  acts  of  Congress  relating  to  internal  revenue  (1861-1910) 17 

Schedule  of  articles  and  occupations  subject  to  tax 33 

Table  of  special  taxes  and  50  per  cent  penalties 36 

List  of  internal-revenue  collection  districts 37 

List  of  internal-revenue  regulations 39 

Table  of  sections 41 

INTERNAL-REVENUE  LAWS. 

Organization  of  Office  of  Internal  Revenue. 45 

Chapter  1.  Officers  of  internal  revenue 57 

2.  Assessments  and  collections 85 

3.  Special  taxes 125 

4.  Distilled  spirits 147 

5.  Fermented  liquors 243 

6.  Tobacco  and  snuff 256 

7.  Cigars 278 

8.  Opium. 290 

9.  Oleomargarine,  etc 292 

10.  Filled  cheese 305 

11.  Mixed  flour............ 310 

12.  Legacies  and  distributive  shares 315 

13.  Excise  tax  on  corporations 320 

14.  Stamps 329 

15.  Playing  cards 343 

16.  Banks  and  bankers 348 

17.  Provisions  common  to  several  objects  of  taxation 353 

APPENDIX. 

(Containing  miscellaneous  provisions  and  laivs  of  a  general  nature  applicable  to  the 
administration  of  the  internal-revenue  laws.) 

Chapter  1.  Suits  and  prosecutions,  jurisdiction,  practice,  evidence,  liens,  lim- 
itations, compromises,  remissions;  United  States  attorneys,  duties 
as  to  prosecutions,  reports;  clerks  of  courts,  reports  of,  etc 383 

2.  Duties  of  officers  charged  with  receiving  or  disbursing  public 

moneys,  penalties  for  embezzlement  and  official  misconduct, 
proceedings  against  delinquent  officers,  etc 404 

3.  Penalties  for  perjury,  obstructing  process,  resisting  officers,  res- 

cuing prisoners  or  property,  falsely  assuming  to  be  an  officer, 
bribery,  conspiracy,  destroying  public  records,  stealing  public 
property,  receiving  stolen  Government  property,  counterfeiting, 
interstate  shipments  of  liquors,  etc 414 

4.  Payment  to  persons  in  arrears,  set-offs,  credits,  priority  of  Gov- 

ernment, appropriations,  claims,  attorneys  before  departments, 
duplicate  checks,  penalty  envelopes,  telegrams,  etc 422 

5.  Officers,  clerks,  and  employees,  extra  services,  holding  two  offices, 

prohibition  as  to  business,  fees,  perquisites,  political  contribu- 
tions, presents  to  superiors,  etc 431 

Index 439 

3 

231368 


INTRODUCTION. 


This  compilation  contains  the  internal-revenue  laws  in  force  March  4, 
1911. 

The  last  compilation  was  published  in  1900.  Since  that  date  many 
changes  have  been  made  in  the  law  and  new  legislation  enacted, 
rendering  much  of  the  matter  contained  in  that  compilation  obsolete 
and  making  a  new  compilation  very  desirable. 

The  most  in%ortant  measures  relating  to  internal  revenue  passed 
since  the  last  compilation  was  issued  are  as  follows : 

I.  War-revenue  repeal  act. — The  act  entitled  "An  act  to  repeal 
war-revenue  taxation,  and  for  other  purposes,"  approved  April  12, 
1902,  which,  so  far  as  it  related  to  internal  revenue,  took  effect  July  1, 
1902. 

II.  Oleomargarine  law. — The  act  of  May  9,  1902,  established  a 
new  rate  of  tax  on  oleomargarine.  A  tax  of  10  cents  per  pound  was 
imposed  also  on  adulterated  butter  and  one-fourth  of  1  cent  per 
pound  on  process  or  renovated  butter. 

New  special  taxes  were  also  imposed  on  manufacturers  of  adulter- 
ated butter,  and  of  process  or  renovated  butter,  and  on  wholesale 
and  retail  dealers  in  adulterated  butter. 

III.  Denatured  alcohol  act. — The  act  of  June  7,  1906,  pro- 
vided for  free  alcohol  for  use  in  the  arts  and  industries,  and  was 
amended  by  the  act  of  March  2,  1907. 

IV.  Fortification  of  wines. — The  act  of  June  7,  1906,  amended 
the  law  relative  to  the  fortification  of  pure  sweet  wines. 

V.  a.  Special  excise  tax  on  corporations. — The  Payne-Aldrich 
tariff  act  entitled  "An  act  to  provide  revenue,  equalize  duties,  and 
encourage  the  industries  of  the  United  States,  and  for  other  purposes, " 
approved  August  5,  1909,  contained  important  internal-revenue  legis- 
lation. The  act  imposed  on  corporations,  joint-stock  companies, 
associations,  and  insurance  companies  with  certain  exceptions  a 
special  excise  tax  equivalent  to  1  per  cent  of  their  net  income  in 
excess  of  $5,000. 

V.  b.  New  rate  of  tax  on  tobacco  and  cigars. — This  act  also 
amended  the  law  in  regard  to  tobacco  and  cigars. 

The  body  of  this  work  consists  of  Title  XXXV  of  the  Revised 

Statutes,  with   amendments,  and   subsequent  acts   incorporated  in 

their  appropriate  places,  the  obsolete   and  repealed   sections  being 

omitted. 

5 


(5  INTRODUCTION. 

Where  portions  of  sections  are  printed  in  italics,  it  indicates  that  the 
words  so  printed  are  amendments.  The  feature  in  previous  compila- 
tions of  introducing  section  numbers  in  brackets  for  convenience  of 
reference  is  retained;  for  instance  [sec.  3153a].  This  indicates  that  a 
new  provision  of  law  has  been  enacted  since  the  Revised  Statutes, 
amendatory  of,  or  additional  to,  section  3153,  which  seems  to  belong, 
in  its  proper  order,  immediately  after  it. 

The  references,  in  previous  compilations,  to  decisions  of  the  courts, 
and  the  opinions  of  the  Attorneys  General,  and  of  this  office,  bearing 
upon  the  construction  of  the  sections  which  they  follow,  and  explana- 
tory thereof,  are  retained  where  applicable,  with  additions,  as  are  also 
the  references  made  in  notes  at  the  close  of  sections  to  other  sections  of 
the  law  relating  to  the  same  matter  or  which  modify  or  affect  the  sec- 
tions which  they  follow. 

The  plan  adopted  in  previous  compilations  in  the  arrangement  of 
the  Appendix — viz,  that  of  grouping  the  sections  and  acts  relating  to 
the  same  subject,  instead  of  preserving  the  sequence  according  to  the 
enumeration  in  the  Revised  Statutes — is  followed  in  the  present  com- 
pilation. 

The  publication  of  decisions  in  the  Internal  Revenue  Record 
(United  States  revenue  journal)  was  discontinued  after  December, 
1897. 

The  publication  of  internal-revenue  decisions  and  circulars  com- 
mencing January  1,  1898,  have  been  published  in  Treasury  Decisions 
weekly  by  the  Treasury  Department  (T.  D.  18758). 

Royal  E.  Cabell, 

Commissioner. 


ABBREVIATIONS. 


Abb.  (U.  S.) Abbott's  United  States  Circuit  and  District  Court  Reports. 

Am.  Eng.  Ency.  Law.  .American  and  English  Encyclopedia  of  Law. 

App.  D.  C Court  of  Appeals  Reports,  District  of  Columbia. 

Ben Benedict's  United  States  District  Court  Reports. 

Biss.  (U.  S.) Bissell's,  United  States  Circuit  and  District  Court  Reports. 

Blatchf Blatchford's  United  States  Circuit  Court  Reports. 

Bond  (U.  S:) Bond's  United  States  Circuit  and  District  Court  Reports. 

Cal California  Reports. 

Cliff.  (U.  S.) Clifford's  United  States  Circuit  Court  Reports. 

Conn' Connecticut  Reports. 

Comp.  Dec Comptroller's  Decisions. 

Ct.  Clms United  States  Court  of  Claims  Reports. 

Crancb  (U.  S.) Cranch's  United  States  Supreme  Court  Reports. 

Dall  (U.  S.) Dallas'  United  States  Reports. 

Deady  (U.  S.) Deady's  United  States  Circuit  and  District  Court  Reports. 

Dill.  (U.  S.) Dillon's  United  States  Circuit  Court  Reports. 

Fed.  Cas Federal  Cases  United  States  Circuit  and  District  Courts. 

Fed.  Rep The  Federal  Reporter. 

Ga Georgia  Reports. 

Gray  (Mass.) Gray's  Massachusetts  Reports. 

Hughes  (U.  S.) Hughes'  United  States  Circuit  Court  Reports. 

Int.  Rev.  Roc Internal  Revenue  Record. 

Lawrence  Dec Decisions  of  William   Lawrence,    First  Comptroller  of  the 

Treasury. 

Low Lowell's  United  States  District  Court  Reports. 

Mackey  (D.  C.) Mackey's  District  of  Columbia  Reports. 

Mass Massachusetts  Reports. 

N.  C North  Carolina  Reports. 

N.  Y New  York  Reports. 

Op.  Atty.  Gen United  States  Attorney  General's  Opinions. 

Otto  (U.  S.) Otto's  United  States  Supreme  Court  Reports. 

Penn Pennsylvania  Reports. 

Pet.  (U.  S.) Peter's  United  States  Supreme  Court  Reports. 

Saw.  or  Sawy.  (U.  S.).  .Sawyer's  United  States  Circuit  and  District  Court  Reports. 

Reg Internal  Revenue  Regulations. 

R.  S United  States  Revised  Statutes. 

Stat United  States  Statutes  at  Large. 

T.  D Treasury  Decisions. 

U.  S United  States  Supreme  Court  Reports . 

Wall.  (U.  S.) Wallace's  United  States  Supreme  Court  Reports. 

Wash.  Law  Rep Washington  Law  Reporter. 

W.  Va West  Virginia  Reports. 

Wheat Wheaton's  United  States  Supreme  Court  Reports. 

Wood  (U.  S.) Wood's  United  States  Circuit  Court  Reports. 

Woolw Woolworth's  United  States  Circuit  Court  Reports. 

7 


COMMISSIONERS  OF  INTERNAL  REVENUE  SINCE  THE 
ORGANIZATION  OF  THE  INTERNAL-REVENUE  OFFICE 
IN  1862. 


George  S.  Boutwell,  of  Massachusetts,  from  July  17,  1862,  to  March  3,  1S63,  both 
dates  iuclusive. 

Joseph  J.  Lewis,  of  Pennsylvania,  from  March  18, 1863,  to  June  30, 1865. 

William  Orton,  of  New  York,  from  July  1,  1865,  to  October  31,  1865. 

Edward  A.  Rollins,  of  New  Hampshire,  from  November  1,  1865,  to  March  10,  1869. 

Columbus  Delano,1  of  Ohio,  from  March  11,  1869,  to  January  2,  1871. 

John  W.  Douglass,  of  Pennsylvania,  was  Acting  Commissioner  from  November 
1,  1870,  to  January  2,  1871. 

Alfred  Pleasonton,  of  New  York,  from  January  3,  1871,  to  August  8,  1871. 

John  W.  Douglass,  of  Pennsylvania,  from  August  9,  1871,  to  May  14,  1875. 

Daniel  D.  Pratt,  of  Indiana,  from  May  15,  1875,  to  July  31,  1876. 

Green  B.  Raum,  of  Illinois,  from  August  2,  1876,  to  April  30,  1883. 

Henry  C.  Rogers,  of  Pennsylvania  (Acting  Commissioner),  from  May  1,  1883, 
to  May  10,  1883. 

John  J.  Knox,  of  Minnesota  (Acting  Commissioner),  from  May  11,  1883,  to 
May  20,  1883. 

Walter  Evans,  of  Kentucky,  from  May   21,  1883,  to  March  19,  1885. 

Joseph  S.  Miller,  of  West  Virginia,  from  March  20,  1885,  to  March  20,  1889. 

John  W.  Mason,  of  West  Virginia,  from  March  21,  1889,  to  April  18,  1893. 

Joseph  S.  Miller,  of  West  Virginia,  from  April  19,  1893,  to  November  26,  1896. 

William  St.  John  Forman,  of  Illinois,  from  November  27,  1896,  to  December  31, 
1897. 

Nathan  Bay  Scott,  of  West  Virginia,  from  January  1,  1898,  to  February  28,  1899. 

George  W.  Wilson,  of  Ohio,  from  March  1,  1899,  to  November  27,  1899. 

Robt.  Williams,  jr.,  of  ( )hio  (Acting  Commissioner),  from  November  28,  1899, 
to  December  19,  1900. 

John  W.  Yerkes,  of  Kentucky,  from  December  20,  1900,  to  April  30,  1907. 

John  G.  Capers,  of  South  Carolina,  from  June  5,  1907,  to  August  31,  1909. 

Royal  E.  Cabell,  of  Virginia,  from  September  1,  1909. 

1  Mr.  Delano  was  appointed  and  commissioned  Secretary  of  the  Interior  November  1,  1S70.  He  did  not 
resign  the  office  of  Commissioner  of  Internal  Revenue,  and  therefore  became  the  legal  holder  of  two  offices, 
Commissioner  of  Internal  Revenue  and  Secretary  of  the  Interior,  as  he  might  legally  do,  for  the  duties  of  the 
two  offices  are  distinct  and  compatible.  (Converse  v.  United  States,  21  How.,  408;  United  States  v.  Saun- 
ders, 120  U.  S.,  126.; 

He  continued  to  hold  the  office  of  Commissioner  of  Internal  Revenue  until  his  successor  was  appointed 
and  qualified,  but  was  absent  from  the  internal-revenue  office  and  discharged  the  duties  and  received  the 
salary  of  the  office  of  Secretary  of  the  Inteiror  and  of  that  ollice  only. 

Deputy  Commissioner  Douglass  was  Acting  Commissioner  of  Internal  Revenue  in  the  absence  of  Commis- 
sioner Delano  (15  Stat.,  108),  and  continued  to  be  so  until  Alfred  Pleasonton  was  commissioned  as  Commis- 
sioner of  Internal  Revenue,  January  3, 1871. 

9 


INTERNAL-REVENUE    TAXATION. 


The  Congress  shall  have  power  to  lay  and  collect  taxes,  duties, 
imposts,  and  excises,  to  pay  the  debts  and  provide  for  the  common 
defense  and  general  welfare  of  the  United  States;  but  all  duties, 
imposts,  and  excises  shall  be  uniform  throughout  the  United  States. 
(Constitution  of  the  United  States,  art.  1,  sec.  8;  McGuire  v.  The  Com- 
monwealth, 3  Wall.,  387;  Pervear  v.  The  Commonwealth,  5  Wall., 
533;  The  Collector  v.  Day,  11  Wall.,  113,  13  Int.  Rev.  Rec,  141; 
United  States  v.  Singer,  15  Wall.,  Ill,  17  Int.  Rev.  Rec,  9;  Scholey 
v.  Rew,  23  Wall.,  331.) 

A  general  power  is  given  to  Congress  to  lay  and  collect  taxes  of 
every  kind  or  nature  without  any  restraint,  except  only  on  exports; 
but  two  rules  are  prescribed  for  their  government,  namely,  uniformity 
and  apportionment.  Three  kinds  of  taxes,  to  wit,  duties,  imposts, 
and  excises  by  the  first  rule,  and  capitation,  or  other  direct  taxes,  by 
the  second  rule.     (Hylton  v.  The  United  States,  3  Dall.,  171-173.)  * 

The  power  of  Congress  to  tax  is  a  very  extensive  power.  It  is  given 
in  the  Constitution  with  only  one  exception,  and  only  two  qualifications. 
Congress  can  not  tax  exports,  and  it  must  impose  direct  taxes  by  the 
rule  of  apportionment,  and  indirect  taxes  by  the  rule  of  uniformity. 
Thus  limited,  and  thus  only,  it  reaches  every  subject,  and  may  be 
exercised  at  discretion.  (License  tax  cases,  5  Wall.,  463,  6  Int.  Rev. 
Rec,  36.) 

Subject  to  the  limitations  in  the  Constitution  the  taxing  power  of 
Congress  extends  to  all  usual  objects  of  taxation.  (Knowlton  v. 
Moore  (1900),  178  U.  S.,  41;  T.  D.  129.) 

Direct  taxes  must  be  apportioned,  while  indirect  taxes  must  be 
uniform  throughout  the  United  States.  (Income  tax  cases,  157  U.  S., 
429;  158  id.,  601;  Nicol  v.  Ames,  173  U.  S.,  509.) 

A  tax  on  bank  circulation  is  not  a  direct  tax,  and  may  be  laid  with- 
out apportionment.  (Springer  v.  United  States,  102  U.  S.,  586 ;  27  Int. 
Rev.  Rec,  78;  Veazie  Bank  v.  Fenno,  8  Wall.,  533,  10  Int.  Rev.  Rec, 
195.) 

A  tax  upon  the  business  of  an  insurance  company  is  not  a  direct 
tax,  but  a  duty  or  excise.  (Pacific  Insurance  Company  v.  Soule,  7 
Wall.,  433.) 

The  tax  imposed  by  the  act  of  June  13,  1898  (war-revenue  act),  on 
sugar  refining  companies  was  not  a  direct  tax  but  a  "special  excise 
tax."     (192  U.  S.,  397;  T.  D.,  760.) 

No  State  court  can  by  injunction  or  otherwise  prevent  Federal 
officers  from  collecting  Federal  taxes.  The  Government  of  the  United 
States  within  its  sphere  is  independent  of  State  action.  (Keely  v. 
Sanders,  99  U.  S.,  443.) 

The  same  principle  which  denies  to  a  State  power  to  raise  a  revenue 
by  taxation  on  Federal  property,  or  sources  of  revenue,  or  means  of 

11 


12  INTERNAL-REVENUE    TAXATION. 

carrying  on  its  duties,  forbids  taxation  of  State  revenue  for  Federal 
purposes.  (12  Op.  Attv.  Gen.,  282;  Collectors.  Day,  11  Wall.,  113; 
Ambrosini  v.  U.  S.,  187  U.  S.,  1;  T.  D.  593.) 

As  the  States  can  not  tax  the  powers,  the  operations,  or  the  property 
of  the  United  States,  nor  the  means  which  they  employ  to  cany  their 
powers  into  execution,  so  it  has  been  held  the  United  States  have  no 
power  under  the  Constitution  to  tax  either  the  instrumentalities  or 
the  property  of  a  State.     (Pollock  v.  Trust  Co.,  157  U.  S.,  584.) 

A  municipal  corporation  is  a  portion  of  the  sovereign  power  of  the 
State,  and  is  not  subject  to  taxation  by  Congress  upon  its  municipal 
revenues.     (United  States  v.  Railroad  Co.,  17  Wall.,  322.) 

The  exemption  of  State  agencies  does  not  extend  to  those  used  by 
the  State  in  carrying  on  an  ordinary  private  business.  (South  Caro- 
lina v.  U.  S.,  199  U.  S.,  437;  T.  D.  961.) 

CONSTRUCTION    OF    STATUTES. 

Statutes  in  pari  materia  are  to  be  construed  together,  and  repeals 
by  implication  are  not  favored  if  the  acts  can  reasonably  stand 
together.  (Harrington's  Distilled  Spirits,  11  Wall.,  356,  13  Int.  Rev. 
Rec,  193;  United  States  v.  100  Barrels  of  Spirits,  12  ibid.,  153;  United 
States  V.  Cook  County  National  Bank,  25  ibid.,  266.) 

In  construing  statutes  the  fundamental  rule  is  to  get  at  the  inten- 
tion of  the  legislature.     (In  re  Matthews,  109  Fed.  Rep.,  603.) 

Legislative  intention  is  the  guide  to  true  judicial  interpretation. 
(United  Slates  v.  100  Barrels  of  Spirits,  12  Int.  Rev.  Rec,  153.) 

A  well-settled  rule  of  interpretation  is  that  a  legislative  act  is  to  be 
interpreted  according  to  the  intention  of  the  legislature  apparent  upon 
its  face.     (Wilkinson  v.  Deland,  2  Pet.,  627.) 

A  statute  may  be  construed  contrary  to  its  literal  meaning  when  a 
literal  construction  would  result  in  an  absurdity  or  inconsistency,  and 
the  words  are  susceptible  of  another  construction  which  carries  out 
the  manifest  intention.  (Sutherland  on  Statutory  Construction, 
par.  323.) 

Revenue  laws  are  not,  like  penal  acts,  to  be  construed  strictly  in 
favor  of  the  defendants.  They  are  rather  to  be  regarded  as  remedial 
in  their  character,  passed  to  promote  the  public  good,  and  should  be 
so  construed  as  to  carry  out  the  intention  of  the  legislature  in  passing 
them.  (Cliquot's  Champagne,  3  Wall.,  114;  4  Int.  Rev.  Rec,  58; 
United  States  v.  28  Casks  of  Wine,  7  Int.  Rev.  Rec,  4;  United  States 
>6  Barrels  of  High  Wines,  12  ibid.,  40;  United  States  v.  100  Barrels 
of  Spirits,  12  ibid.,  153;  United  States  v.  Stowell  133  U.  S.,  1;  36  Int. 
Rev.  Rec,  30.) 

A-  a  genera]  rule  the  construction  of  these  statutes  musl  be  such  as 
is  most  favorable  to  their  enforcement.  There  is  no  liberal  inter- 
pretation in  favor  of  the  individual  to  be  indulged  in.  (18  Op.  Atty. 
Gen.,  246;  31  Int.  Rev.  Rec,  246.)  Revenue  laws  are  to  be  con- 
strued liberally  to  carry  out  the  purposes  of  their  enactmenl  (Smythe 
v.  Fiske,  23  Wall.,  380;  Taylor  v.  United  States,  3  How.,  107;  United 
States  v,  I »ree, I,  2  I  Fed.  ( las.,  1222),  and  the  rule  of  construction  appli- 
cable to  statutes  generally,  that  what  is  implied  in  them  is  as  much  a 
part  of  the  enactment  as  whal  is  expressed,  holds  in  regard  to  them. 
(United  States  v.  Hodson  (1870),  10  Wall.,  395.) 

They  should  be  construed  with  reasonable  fairness  to  the  citizen. 
(United  States  o.  Distilled  Spirits,  10  Blatch.,  128.) 


INTERNAL-REVENUE    TAXATION.  13 

Statutes  should  receive  a  sensible  construction,  such  as  will  effect- 
uate the  legislative  intention,  and  avoid,  if  possible,  an  unjust  or 
absurd  construction.     (In  re  Chapman,  166  U.  S.,  661.) 

Internal-revenue  acts  should  be  interpreted  in  harmony  with  the 
tariff  legislation  of  the  country.  (Taylor  v.  Treat  (1907),  153  Fed. 
Rep.,  656.) 

The  laws  providing  for  forfeiture  by  violators  of  revenue  laws  are 
not  to  be  governed  by  the  rule  of  strict  construction  applied  to  penal 
statutes  in  general,  but  are  to  have  a  reasonable  construction.  U.  S. 
v.  246£  Pounds  Tobacco,  103  Fed  Rep.,  791.) 

Statutes  are  to  receive  a  reasonable  construction,  and  doubtful 
words  and  phrases  are  to  be  construed,  if  possible,  so  as  not  to  produce 
mischievous  results.  But  when  the  words  are  plain  and  unambigu- 
ous, there  is  no  room  for  construction,  and  nothing  is  left  for  the 
court  but  to  give  them  their  full  effect.  (The  Samuel  E.  Spring 
(1886),  27  Fed.  Rep.,  776.) 

Statutes  should  be  so  construed,  if  practicable,  that  one  section 
will  explain  and  support  and  not  defeat  or  destroy  another  section. 
(Bernier  v.  Bernier,  147  U.  S.,  242.) 

It  is  a  settled  rule  that  where  there  are  two  consistent  acts  relating 
to  the  same  subject,  effect  is  to  be  given  to  both  of  them.  (Chicago, 
etc.,  v.  United  States,  127  U.  S.,  406;  Landram  v.  United  States,  118 
U.  S.,  81;  32  Int.  Rev.  Rec,  151.) 

The  words  of  the  statute  are  to  be  taken  in  the  sense  in  which  they 
will  be  understood  by  that  public  in  which  they  are  to  take  effect. 
Science  and  skill  are  not  required  in  their  interpretation,  except  where 
scientific  or  technical  terms  are  used. 

The  liability  of  an  instrument  to  stamp  duty,  as  well  as  the  amount 
of  such  duty,  is  determined  by  the  form  and  face  of  the  instrument, 
and  can  not  be  affected  by  proof  of  facts  outside  of  the  instrument 
itself.     (United  States  v.  Isham,  17  Wall.,  496;  19  Int.  Rev.  Rec,  84.) 

Laws  of  doubtful  or  double  meaning  should  not  be  too  harshly  con- 
strued. (United  States  v.  1,412  Gallons  of  Distilled  Spirits,  17  Int. 
Rev.  Rec,  86.) 

Courts  are  not  at  liberty,  by  construction  or  legal  fiction,  to  include 
subjects  of  taxation  not  within  the  terms  of  the  law.  (United  States 
v.  Watts,  1  Bond,  580;  1  Int.  Rev.  Rec,  17.) 

Duties  are  never  imposed  on  the  citizens  upon  vague  or  doubtful 
interpretations.  (Hartranft  v.  Weigmann,  121  U.  S.,  609,  and  cases 
there  cited.) 

Punctuation  no  part  of  the  statute.  (Hammock  v.  Loan  and  Trust 
Company,  105  U.  S.,  77,  84,  85.) 

It  is  the  duty  of  the  court  to  study  the  whole  statute,  its  policy,  its 
spirit,  its  purpose,  its  language,  and,  giving  to  the  words  used  their 
obvious  and  natural  import,  to  read  the  act  with  these  aids  in  such 
way  as  will  best  effectuate  the  intention  of  the  legislature.  (United 
States  v.  100  Barrels  Spirits,  12  Int.  Rev.  Rec,  154.) 

Words  spoken  by  members  in  debate,  or  the  motives  of  members, 
not  to  be  considered  in  construing  statutes;  but  courts  in  construing 
a  statute  may,  with  propriety,  recur  to  the  history  of  the  times  when 
it  was  passed.  (United  States  v.  Union  Pacific  Railroad  Company, 
91  U.  S.,  72-79.) 

Debates  in  Congress  as  sources  of  information  for  construction  of 
statutes.     (27  Op.  Atty.  Gen.,  68.) 


14  INTERNAL-REVENUE    TAXATION. 

The  courts  may  look  to  the  history  of  the  legislation  upon  the  sub- 
ject of  which  the  statute  treats,  and  the  history  of  the  times  in 
which  it  was  enacted,  as  well  as  the  general  history  of  the  country,  to 
determine  the  purpose  that  the  Government  sought  to  accomplish. 
(Church  of  the  Holy  Trinity  v.  United  States,  143  U.  S.,  457.) 

In  case  of  ambiguity  in  a  statute  contemporaneous  and  uniform 
executive  construction  is  regarded  as  decisive.  (Brown  v.  United 
States,  113  U.  S.,  568;  also  decisions  cited  by  Attorney  General  in 
letter  to  Secretary  of  Treasury,  Nov.  17,  1885,  31  Int.  Rev.  Rec,  382; 
Nunn  v.  Gerst  Brewing  Co.,  99  Fed.  Rep.,  941.) 

Where  the  language  of  a  series  of  statutes  is  dubious,  and  open  to 
different  interpretations,  the  construction  put  upon  them  by  the 
executive  department  charged  wTith  their  execution  has  great  and 
generally  controlling  force  with  the  court.  (St.  Paul,  Minneapolis, 
etc.,  Railway  Co.  v.  Phelps,  137  U.  S.,  528;  see  19  Op.  Atty.  Gen.,  177.) 

A  construction  of  a  doubtful  or  ambiguous  statute  by  the  executive 
department  charged  with  the  execution,  in  order  to  be  binding  upon 
the  courts,  must  be  long  continued  and  unbroken.  (Merritt  v.  Cam- 
eron^ 137  U.  S.,  542.) 

It  is  a  rule  well  established  that  the  construction  given  to  a  statute 
by  those  charged  with  the  duty  of  executing  it  will  be  given  great 
weight  by  the  courts  if  the  true  construction  be  doubtful  (United 
States  v.  Hill,  120  U.  S.,  169,  and  cases  cited,  p.  182);  but  this  rule 
has  no  application  where  the  statute  is  not  ambiguous  or  where  it 
w  ill  not  bear  the  interpretation  put  upon  it  by  the  executive  officers. 
(Swift  Company  v.  United  States,  105  U.  S.,  691,  695;  United  States  v. 
Graham,  110  IT.  S.,  219;  United  States  v.  Tanner,  147  U.  S.,  661; 
United  States  v.  Alger,  152  U.  S.,  384,  397.) 

The  same  statute  may  be  in  part  constitutional  and  in  part  uncon- 
stitutional;  and  if  the  parts  are  wholly  independent  of  each  other, 
that  which  is  constitutional  may  stand  while  that  which  is  uncon- 
stitutional will  be  rejected.  Unless  it  be  impossible  to  avoid  it,  a 
general  revenue  statute  should  never  be  declared  inoperative  in  all 
its  parts  because  a  particular  part  relating  to  a  distinct  subject  may 
be  invalid.  (Field  v.  Clark  (1892),  143  U.  S.,  649;  38  Int.  Rev.  Rec, 
285.) 

When  an  act  of  Congress  is  claimed  to  be  unconstitutional,  the  pre- 
sumption is  in  favor  of  its  validity,  and  it  is  only  when  the  question 
is  \'vcr  from  any  reasonable  doubt  that  courts  should  hold  an  act  in 
violation  of  that  fundamental  instrument  upon  which  all  the  powers 
of  the  ( rovernment  rest.     (Nicol  v.  Ames,  173  U.  S.,  509.) 

TIME    WHEN    AN    ACT   TAKES    EFFECT. 

A  l,i w  of  Congress  which  contains  no  provision  as  to  the  time  when 
it  shall  take  eneel  commences  and  takes  effect  as  a  law  from  the 
moment  it  receives  the  approbation  of  the  President.  As  a  general 
rule,  it  is  not  competent  to  go  into  the  division  of  a  day.  (30p.  Atty. 
Gen.,  82.) 

For  most  purposes  I  hie  law  regards  the  entire  day  as  an  indivisible 
unit.  But  when  the  priority  of  one  legal  right  over  another,  depending 
on  the  order  of  events  occurring  on  the  same  day,  is  involved,  this  rule 
is  necessarily  departed  from.  (National  Bank  v.  Burkhardt,  100 
U.  S.,  686.)  ' 


INTERNAL-REVENUE   TAXATION.  15 

In  the  absence  of  proof  there  is  a  presumption  that  an  act  was 
signed  on  the  first  minute  of  the  day  when  it  took  effect,  but  it  is  com- 

Eetent  to  show  by  proof  the  exact  time  when  the  law  was  approved 
y  the  President,  and  when  this  is  made  to  appear  the  law  can  only 
be  given  effect  from  that  time.  (Carriage  Company  v.  Stengel,  37  C. 
C.  A.,  210;  95  Fed.  Rep.,  637;  Nunn  v.  William  Gerst  Brewing  Co., 
99  Fed.  Rep.,  939.) 

The  case  of  United  States  v.  Iselin  (87  Fed.  Rep.,  194)  contains  a 
very  full  discussion  of  the  subject  by  the  Board  of  General  Appraisers. 

When  necessary  to  determine  conflicting  rights  courts  of  justice  will 
take  cognizance  of  the  fractions  of  a  day.  (Louisville  v.  Savings  Bank 
(1881),  104  U.S.,  469.) 

The  act  of  March  3,  1875,  took  effect  from  the  time  it  was  approved 
and  not  at  the  commencement  of  the  day.  (Salmon  v.  Burgess,  97  U. 
S.,  381;  25  Int.  Rev.  Rec,  31.) 

When  the  act  of  August  28,  1894,  went  into  effect.  (Burr  v.  United 
States,  159  U.  S.,  78.) 

The  act  of  July  24,  1897,  became  a  law  only  from  the  moment  of  its 
approval  by  the  President,  which  was  6  minutes  past  4  o'clock  p.  m. 
(Washington  time)  on  July  24, 1897.  (United  States  v.  Iselin,  87  Fed. 
Rep.,  194;  United  States  v.  Stoddard,  89  Fed.  Rep.,  699.)  Affirmed 
by  the  United  States  circuit  court  of  appeals  (91  Fed.  Rep.,  1005; 
34  C.  C.  A.,  175).  The  Government,  on  the  advice  of  the  Attorney 
General,  acquiesced  in  said  decisions  without  seeking  to  prosecute  any 
appeal  to  the  United  States  Supreme  Court.  (T.  D.,  20627;  T.  D., 
20700.) 

The  act  of  June  13,  1898,  known  as  the  "war-revenue  act,"  took 
effect  on  the  day  next  succeeding  the  day  of  its  passage — that  is,  on 
June  14,  1898,  except  as  otherwise  provided  for.     (Sec.  51.) 

The  act  of  April  12,  1902  (war-revenue  repeal  act),  took  effect  July 
1,  1902,  except  as  otherwise  specially  provided  for  in  section  10. 

The  act  of  August  5,  1909  (Payne-Aldrich  tariff  act),  took  effect, 
unless  otherwise  specially  provided,  on  the  day  following  its  passage. 


INTERNAL-REVENUE  LEGISLATION. 


The  Revised  Statutes  were  compiled  under  an  act  of  June  27,  1866 
(14  Stat.,  74). 

A  list  of  acts  respecting  internal-revenue  duties,  from  the  first  act 
(act  of  March  3,  1791)  to  April  28,  1828,  is  published  in  United  States 
Statutes  at  Large,  volume  1. 

ACTS   OF  CONGRESS  RELATING  TO  INTERNAL  REVENUE  ENACTED  SINCE 

JULY  4,  1861. ' 

[Not  including  private  acts,  nor  appropriation  acts  passed  prior  to  the  enactment  of 

the  Revised  Statutes,  June  22,  1874.] 

Revised  Statutes,  Title  XXXV,  Sections  3140-3465. 

No  reference  can  be  had  to  the  original  statutes  to  control  the  construction  of  any 
section  of  the  Revised  Statutes  when  its  meaning  is  plain,  but  where  there  is  a 
substantial  doubt  as  to  the  meaning  of  the  language  used  in  the  revision  the  old 
law  is  a  valuable  source  of  information.  (United  States  v.  Bowen,  100  U.  S.,  508, 
513;  United  States  v.  Lacher,  134  U.  S.,  624.) 

In  construing  any  part  of  the  Revised  Statutes  it  is  admissible  and  often  necessary 
to  recur  to  its  connection  in  the  act  of  which  it  was  originally  a  part.  (United 
States  v.  Hirsch,  100  U.  S.,  35.) 

In  case  of  ambiguous  language  in  the  Revised  Statutes  or  uncertainty  as  to  the  true 
construction  to  be  given  to  the  words  of  any  section,  previous  acts  on  the  same 
subject  may  be  referred  to  and  examined  for  light  on  the  object  and  intent  of 
Congress  as  shown  by  the  course  of  legislation,  in  the  same  manner  as  statutes 
in  pari  materia  relating  to  the  same  subject  may  always  be  taken,  compared,  and 
construed  together.  (Wright  v.  United  States,  15  Ct.  Cls.,  87.  See  also  United 
States  v .  Claflin,  97  U.  S.,  546,  and  opinion  of  First  Comptroller  Porter  in  Kansas 
claim  for  5  per  cent  net  proceeds  of  public  lands,  1  Lawrence  Dec,  43.) 

No  inference  or  presumption  of  a  legislative  construction  is  to  be  drawn  by  reason  of 
the  title  under  which  any  particular  section  is  placed.     (Sec.  5600,  R.  S.) 

An  act  to  provide  increased  revenue  from  imports,  to  pay  interest  on 
the  public  debt,  and  for  other  purposes,  approved  August  5,  1861  (12 
Stat.,  292). 

Direct  tax  and  income.  The  act  of  March  2,  1891  (26  Stat.*  822),  authorized 
the  return  to  the  States  of  the  direct  tax  collected. 

An  act  to  provide  internal  revenue  to  support  the  Government  and 
to  pay  interest  on  the  public  debt,  approved  July  1,  1862  (12  Stat., 
432). 

Office  of  Internal  Re  venue  created. 

Income  tax. — Under  this  act  the  tax  was  3  per  cent  on  incomes  over  $600 
and  not  over  $10,000;  over  $10,000,  5  per  cent.  Act  of  March  3,  1865,  over  $600 
and  not  over  $5,000,  5  per  cent;  over  $5,000,  10  per  cent  on  excess  over  $5,000. 
Act  of  March  2, 1867,  over  $1,000,  5  per  cent.  Act  of  July  14,  1870,  over  $2,000, 
2£  per  cent.  Income  tax  expired  by  limitation  December  31,  1871.  No  income 
tax  was  collected  under  the  act  of  June  30,  1864,  as  it  was  amended  by  the  act 
of  March  3,  1865,  before  it  was  collectible. 

Imposed  tax  on  cotton. 

1  On  this  date  Congress  convened  in  its  first  (extraordinary)  session  after  the  commencement  of  the 
War  of  the  Rebellion,  at  which  session  was  commenced  the  legislation  which  has  since  produced  the 
present  system  of  internal  revenue  taxation. 

72170°— 11 2  17 


18  INTERNAL-REVENUE    LAWS. 

An  act  increasing  temporarily  the  duties  on  imports,  and  for  other 
purposes,  approved  July  14,  1862  (12  Stat.,  543,  560). 

Sections  24  and  25  relate  to  internal  revenue. 

An  act  to  impose  an  additional  duty  on  sugars  produced  in  the 
United  States,  approved  July  16,  1862  (12  Stat.,  588). 

Joint  resolution  to  amend  section  77  of  "An  act  to  provide  internal 
revenue  to  support  the  Government  and  to  pay  interest  on  the  public 
debt,"  and  for  other  purposes,  approved  July  17,  1862  (12  Stat.,  627). 

An  act  to  amend  an  act  entitled  "An  act  to  provide  internal  revenue 
to  support  the  Government  and  to  pay  interest  on  the  public  debt," 
approved  July  1,  1862.     Approved  December  25,  1862  (12  Stat.,  632). 

An  act  to  provide  ways  and  means  for  the  support  of  the  Govern- 
ment, approved  March  3,  1863  (12  Stat.,  709). 

Section  7,  bank  circulation. 

An  act  to  amend  an  act  entitled  "An  act  to  provide  internal  revenue 
to  support  the  Government  and  [to]  pay  interest  on  the  public  debt," 
approved  July  1,  1862,  and  for  other  purposes.     Approved  March  3, 

1863  (12  Stat.,  713). 

An  act  to  prevent  and  punish  frauds  upon  the  revenue,  to  provide 
for  the  more  certain  and  speedy  collection  of  claims  in  favor  of  the 
United  States,  and  for  other  purposes,  approved  March  3,  1863  (12 
Stat.,  737). 

Joint  resolution  to  provide  for  the  printing  annually  of  the  report  of 
the  Commissioner  of  Internal  Revenue,  approved  January  13,  1864 
(13  Stat.,  400). 

An  act  to  increase  the  internal  revenue,  and  for  other  purposes,  ap- 
proved March  7,  1864  (13  Stat.,  14). 

An  act  to  provide  internal  revenue  to  support  the  Government,  to 
pay  interest  on  the  public  debt,  and  for  other  purposes,  approved 
June  30,  1864  (13  Stat.,  223). 

Inspection  stamps  required  on  cigars.     No  money  value. 

Joint  resolution  imposing  a  special  income  duty  [for  the  year  ending 
December  31  next  preceding  October  1,  1864],  approved  July  4,  1864 
(13  Stat.,  417). 

An  act  to  amend  an  act  entitled  "An  act  to  provide  internal  revenue 
to  support  the  Government,  to  pay  interest  on  the  public  debt,  and  for 
other  purposes,"  approved  June  30,  1864.     Approved  December  22, 

1864  (13  Stat.,  420). 

An  act  to  amend  an  act  entitled  "An  act  to  provide  internal  revenue 
to  support  the  Government,  to  pay  interest  on  the  public  debl ,  and  for 
other  purposes,"  approved  June  30,  1864.  Approved  March  3,  1865 
(13  Stat.,  469). 

Inspection  skimps  required  on  tobacco  and  snuif.     No  money  value. 

An  act  amendatory  of  certain  acts  imposing  duties  upon  foreign 
importations,  approved  March  3,  1865  (13  Stat.,  491). 

An  act  authorizing  the  Secretary  of  the  Treasury  to  appoint  assist- 
ant assessors  of  intern.il  revenue,  approved  January  15,  1866  (14 
Stat.,  2). 

An  act  to  declare  the  meaning  of  certain  parts  of  the  internal- 
revenue  act,  approved  June  30,  1864,  and  for  other  purposes.  Ap- 
proved March  in.  1866  (II  Stat.,  4). 


INTERNAL-REVENUE    LAWS.  19 

An  act  to  reduce  internal  taxation  and  to  amend  an  act  entitled  ' '  An 
act  to  provide  internal  revenue  to  support  the  Government,  to  pay  in- 
terest on  the  public  debt,  and  for  other  purposes, "  approved  June  30, 
1864,  and  acts  amendatory  thereof.  Approved  July  13,  1866  (14 
Stat.,  98). 

First  act  reducing  taxation.  Stamps  first  required  on  fermented  liquors. 
Changing  "Licenses"  to  "Special  taxes." 

An  act  to  authorize  the  refunding  of  certain  taxes,  approved  July 
27,  1866  (14  Stat.,  301). 

An  act  amendatory  of  section  13  of  an  act  entitled  "An  act  to 
amend  an  act  entitled  'An  act  to  provide  internal  revenue  to  support 
the  Government,  to  pay  interest  on  the  public  debt,  and  for  other  pur- 
poses,' approved  June  30,  1864,"  approved  March  3,  1865.  Approved 
July  27,  1866  (14  Stat.,  301). 

Joint  resolution  to  prevent  the  further  enforcement  of  the  joint  reso- 
lution (No.  77)  approved  July  4,  1864,  against  officers  and  soldiers  of 
the  United  States  who  have  been  honorably  discharged,  so  as  to  relieve 
them  from  the  further  payment  of  the  special  5  per  cent  income  tax 
imposed  thereby,  approved  July  28,  1866  (14  Stat.,  371). 

Joint  resolution  to  amend  existing  laws  relating  to  internal  revenue, 
approved  February  5,  1867  (14  Stat.,  565). 

A  resolution  to  provide  in  certain  cases  for  the  removal  of  alcohol 
from  bonded  warehouses  free  from  internal  tax,  approved  February  18, 

1867  (14  Stat.,  565). 

An  act  to  amend  existing  laws  relating  to  internal  revenue,  and  for 
other  purposes,  approved  March  2,  1867  (14  Stat.,  471). 
Reduced  taxes. 

An  act  to  exempt  wrapping  paper  made  from  wood  or  cornstalks 
from  internal  tax,  and  for  other  purposes,  approved  March  26,  1867 
(15  Stat.,  6). 

An  act  to  prevent  frauds  in  the  collection  of  the  tax  on  distilled 
spirits,  approved  January  11,  1868  (15  Stat.,  34). 

Prohibits  removal  of  spirits  from  warehouse  for  the  purpose  of  transportation; 
redistillation,  or  rectification,  change  of  package,  or  for  any  other  purpose, 
until  the  full  tax  has  been  paid. 

An  act  to  provide  for  the  exemption  of  cotton  from  internal  tax, 

approved  February  3,  1868  (15  Stat.,  34). 

Reduced  taxes  by  repealing  cotton  tax. 

Joint  resolution  to  provide  for  a  commission  to  examine  and  report 
on  meters  for  distilled  spirits,  approved  February  3,  1868  (15  Stat., 
246). 

An  act  to  exempt  certain  manufactures  from  internal  tax,  and  for 
other  purposes,  approved  March  31,  1868  (15  Stat.,  58). 
Reduced  taxes. 

An  act  for  the  relief  of  certain  exporters  of  rum,  approved  June  25, 

1868  (15  Stat.,  78). 

Joint  resolution  to  correct  an  act  entitled  "An  act  for  the  relief  of 
certain  exporters  of  rum."     Approved  July  6,  1868  (15  Stat.,  256). 

An  act  imposing  taxes  on  distilled  spirits  and  tobacco,  and  for 
other  purposes,  approved  July  20,  1868  (15  Stat.,  125). 

Stamps  first  required  on  distilled  spirits.  Revised  the  entire  law  relative  to 
spirits  and  tobacco.  Reduced  taxation.  Tax  on  cigars  and  tobacco  payable 
by  stamps.  Inspectors  abolished  except  inspectors  of  tobacco.  Supervisors 
and  detectives  authorized. 


20  INTERNAL-REVENUE   LAWS. 

An  act  to  correct  an  error  in  the  enrollment  of  the  ''Act  imposing 
taxes  on  distilled  spirits  and  tobacco,  and  for  other  purposes." 
Approved  July  27,  1868  (15  Stat.,  238). 

An  act  to  amend  an  act  entitled  "An  act  imposing  taxes  on  distilled 
spirits  and  tobacco,  and  for  other  purposes,"  approved  Julv  20,  1868. 
Approved  December  22,  1868  (15  Stat.,  266). 

An  act  to  allow  deputy  collectors  of  internal  revenue,  acting  as 
collectors,  the  pay  of  collectors,  and  for  other  purposes,  approved 
March  1,  1869  (15  Stat.,  282). 

An  act  to  amend  an  act  entitled  "An  act  to  exempt  certain  manu- 
factures from  internal  tax,  and  for  other  purposes,"  approved  March 
31,  1868.     Approved  March  3,  1869  (15  Stat.,  336). 

"Joint  resolution  to  supply  omissions  in  the  enrollment  of  certain 
appropriation  acts,  approved  March  third,  eighteen  hundred  and 
sixty-nine,"  approved  March  29,  1869  (16  Stat.,  52). 

An  act  to  amend  an  act  entitled  "An  act  imposing  taxes  on  distilled 
spirits  and  tobacco,  and  for  other  purposes,"  approved  July  20,  1868. 
Approved  April  10,  1869  (16  Stat.,  41). 

Joint  resolution  in  relation  to  female  clerks  in  the  Internal  Kevenue 
Bureau,  approved  June  29,  1870  (16  Stat.,  382). 

An  act  to  define  the  intent  of  an  act  entitled  "An  act  to  allow 
deputy  collectors  of  internal  revenue,  acting  as  collectors,  the  pay 
of  collectors],  and  for  other  purposes,"  approved  March  1,  1869. 
Approved  July  1,  1870  (16  Stat,,  179). 

A  resolution  to  determine  the  construction  of  an  act  to  provide 
internal  revenue  to  support  the  Government,  [to  pay  interest  on  the 
public  debt,]  and  for  other  purposes,  approved  June  30,  1864.  Ap- 
proved July  13,  1870  (16  Stat.,  387). 

An  act  to  reduce  internal  taxes,  and  for  other  purposes,  approved 
July  14,  ls70  (16  Stat.,  256). 

Repealed  taxes  on  gross  receipts,  legacies  and  successions,  passports,  and 
special  taxi'-,  excepl  those  relating  to  spirits,  fermented  liquors,  and  tobacco, 
also  taxes  on  sales.     Income  tax  to  expire  December  31,  1871. 

An  act  to  amend  existing  laws  relating  to  internal  revenue,  approved 
July  14,  1S70  (10  Stat.,  274). 

Ail  act  to  amend  section  4  of  the  act  of  March  31,  1868,  approved 
July  14,  1870  (16  Stat..  277). 

Joint  resolution  to  construe  the  act  of  March  31,  1868,  approved 
July  1  1,  L870  (16  Stat.,  388). 

An  act  relating  to  internal  taxes,  approved  March  :;,  ls<  1  (16 
Stat.,  175). 

Joint  resolution  to  amend  section  4,  act  of  Julv  20,  1868,  approved 
March  3,  ;^7l  (U\  Stat.,  601). 

An  act  to  repeal  the  paragraphs  of  ScheduL  ( 'of  the  internal-revenue 
act-  imposing  taxes  on  canned  meats,  fish,  and  certain  <>tlt<r  articles, 
approved  March  5,  1^72  (17  Stat..  :;<>). 

An  act  to  provide  for  the  abatement  or  repayment  of  taxes  on  dis- 
tffled  spirit*  in  bond  <l'.;ir<>ii<<l  In/  casualty,  approved  May  27,  1872 
■  17  Stat.,  L6 

An  act  io  reduce  duties  on  imports  and  to  reduce  internal  taxes, 
and  for  other  purposes,  approved  June  6,  is72  (17  Stat.,  238),  taking 
effeel  October  I.  L872. 

Stamp  duties  on  instruments,  <'xnM>t  bank  checks,  repealed.  Moieties  abol- 
iahed.  i  Uniform  rate  <>i"  20  <•<  i>i-  per  pound  on  tobacco  instead  of  the  two  rates, 
10  ami  ;;_'  cents.     Tax  on  spirits,  70  cents  per  gallon. 


INTERNAL-REVENUE   LAWS.  21 

An  act  for  the  reduction  of  officers  and  expenses  of  the  internal 
revenue,  approved  December  24,  1872  (17  Stat.,  401). 

Assessors  abolished.     Reduces  collection  districts. 

An  act  to  remit  the  excise  taxes  upon  alcohol  used  by  universities 
and  colleges  for  scientific  purposes,  approved  February  21,  1873  (17 
Stat.,  468). 

An  act  to  amend  an  act  entitled  "An  act  to  reduce  duties  on  imports 
and  to  reduce  internal  taxes,  and  for  other  purposes,"  approved  June 
6,  1872,  and  for  other  purposes.  Approved  March  3,  1873.  Section 
5  of  this  act  amends  section  55  of  the  act  of  July  20,  1868,  as  amended 
by  the  act  of  June  6,  1872  (17  Stat.,  559). 

An  act  to  amend  an  act  entitled  "An  act  to  prevent  smuggling,  and 
for  other  purposes,"  approved  July  18,  1866.  Approved  March  3, 
1873  (17  Stat.,  580). 

An  act  relating  to  the  fractional  parts  of  a  barrel  containing  fer- 
mented  liquors,  approved  March  3,  1873  (17  Stat.,  586). 

An  act  to  place  at  the  disposal  of  the  Commissioner  of  Internal 
Revenue  certain  copies  of  the  new  compilation  of  internal-revenue 
laws.     Approved  March  3,  1873  (17  Stat.,  621). 

Reprint  of  internal-revenue  laws  from  August  5,  1861,  to  March  3,  1873. 
Submitted  in  response  to  order  of  the  Senate  of  May  16,  1898,  for  use  in  consid- 
eration of  House  bill  10100,  to  provide  ways  and  means  to  meet  war  expendi- 
tures. 

Senate  Report  No.  1123  55th  Cong.,  2d  sess. 

ACTS,  ETC.,  SINCE  DECEMBER,  1,  1873,  THE  DATE  TO  WHICH  THE  RE- 
VISED STATUTES  OF  THE  UNITED  STATES  RELATE.     (See  sec.  5595,  R.  S.) 

[Supplement  No.  1,  Revised  Statutes,  contains  legislation  of  1874-1891,  Forty-third 
to  Fifty-first  Congresses,  inclusive.  Supplement  No.  2  (parts  1  to  9)  contains  legis- 
lation of  1892-1901,  Fifty-second  to  Fifty-sixth  Congresses,  inclusive.] 

Forty-third  Congress. 

An  act  to  so  amend  the  laws  relative  to  internal  revenue  as  to  allow 
distillery  warehouses  to  be  continued  in  use  after  changes  have  occurred 
in  the  management  of  the  business,  approved  January  8,  1874  (18 
Stat.,  2).     [Sec.  3271a.] 

An  act  to  abolish  the  office  of  Deputy  Commissioner  of  Internal 
Revenue,  approved  January  29,  1874  (18  Stat.,  6). 

Note  to  section  322,  R.  S. 

An  act  to  f  acilitate  the  exportation  of  distilled  spirits,  and  amenda- 
tory of  the  acts  in  relation  thereto,  approved  June  9,  1874  (18  Stat., 
64).     [Sec.  3330.] 

An  act  explanatory  of  the  act  of  June  30,  1864.  Became  law 
June  18,  1874  (18  Stat.,  80). 

An  act  for  the  relief  of  savings  institutions  having  no  capital  stock 
and  doing  business  solely  for  the  benefit  of  depositors,  approved  June 
22,  1874  (18  Stat.,  194). 

An  act  to  provide  for  the  stamping  of  unstamped  instruments,  docu- 
ments, or  papers,  approved  June  23,  1874  (18  Stat.,  250). 

An  act  to  amend  existing  customs  and  internal-revenue  laws,  and 
for  other  purposes,  approved  February  8,  1875  (18  Stat.,  309). 


22  INTERNAL-REVENUE    LAWS. 

An  act  to  correct  errors  and  to  supply  omissions  in  the  Revised 

Statutes  of  the  United  States,  approved  February  18,  1875  (18  Stat., 
31G). 

The  changes  made  by  this  act  were  incorporated  into  the  second  edition, 
Revised  Statutes,  in  their  proper  place. 

An  act  to  further  protect  the  sinking  fund  and  provide  for  the  exi- 
gencies of  the  Government,  approved  March  3,  1875  (18  Stat.,  339). 

Increased  tax  on  spirits  to  90  cents  per  gallon  and  tobacco  to  24  cents  per 
pound;  cigars  to  $6  per  thousand. 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  year  ending  June  30, 
187G,  and  for  other  purposes,  approved  March  3,  1S75  (18  Stat.,  352). 

Section  12  of  "An  act  making  appropriations  to  supply  deficiencies 
in  the  appropriations  for  fiscal  years  ending  June  thirtieth,  eighteen 
hundred  and  seventy-five,  and  prior  years,  and  for  other  purposes," 
approved  March  3,  1875  (18  Stat.,  419). 

An  act  to  amend  section  numbered  3342  of  the  Revised  Statutes 
of  the  United  States,  in  relation  to  affixing  stamps  on  brewers'  casks, 
approved  March  3,  1875  (18  Stat.,  484). 

An  act  to  authorize  the  Secretary  of  the  Treasury  to  adjust  and 
remit  certain  taxes  and  penalties  claimed  to  be  due  from  mining  and 
other  corporations,  and  for  other  purposes,  approved  March  3,  1875 
(18  Stat.,  507). 

Forty-fourth  Congress. 

An  act  to  extend  the  time  for  stamping  unstamped  instruments,  ap- 
proved February  25,  1876  (19  Stat.,  5).  " 

Time  extended  to  January  1,  1877. 

Joint  resolution  concerning  special-tax  stamps,  approved  May  8, 
1876  (19  Stat.,  213).     [Sec.  3233a.] 

An  act  to  define  the  tax  on  fermented  or  malt  liquors,  approved  May 
13,  1876  (19  Stat.,  53).     [Sec.  3337a.] 

An  act  relative  to  the  redemption  of  unused  stamps,  approved  July 
12,  1876  (19  Stat.,  88). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  year  ending  June  30, 

1877,  and  for  other  purposes,  approved  August  15,  1876  (19  Stat., 
152). 

Supervisors  abolished.     Reduced  number  of  collection  districts. 

An  act  to- perfect  the  revision  of  the  statutes  of  the  United  States, 
and  of  the  statutes  relating  to  the  District  of  Columbia,  approved 
February  27,  1877  (19  Stat'.,  240). 

Ounces  made  by  this  act  were  incorporated  in  the  second  edition  Revised 

Slat  lit' 

An  acl  making  appropriatians  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government   for  the  year  ending  June  30, 

1878,  and  for  other  purposes,  approved  March  3,  1877  (19  Stat.,  303). 

Reduced  Dumber  of  collection  districts. 

An  act  relating  to  the  production  of  fruit  brandy  and  to  punish 
frauds  connected  with  the  same,  approved  March  3,  1877  (19  Stat., 
393). 


INTERNAL-REVENUE    LAWS.  23 

Forty-fifth  Congress. 

Joint  resolution  declaring  that  a  reduction  of  the  tax  on  distilled 
spirits  is  inexpedient,  approved  February  18,  1878  (20  Stat.,  248). 

Joint  resolution  to  prescribe  the  time  for  the  payment  of  the  tax  on 
distilled  spirits,  and  for  other  purposes,  approved  March  28,  1878  (20 
Stat.,  249). 

Repealed  by  the  act  of  May  28,  1880. 

An  act  to  extend  the  provisions  of  section  3297  of  the  Revised  Stat- 
utes to  other  institutions  of  learning,  approved  May  3,  1878  (20  Stat.. 
48).     [Sec.  3297a,] 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1879,  and  for  other  purposes,  approved  June  19,  1878  (20  Stat., 
187).     [Sees.  3157a,  3463a.] 

An  act  to  amend  section  5497  of  the  Revised  Statutes,  relating  to 
anbezzlement  by  officers  of  the  United  States,  approved  Februarv  3, 
1879  (20  Stat.,  280).     [Sec.  5497,  Sec.  96,  Criminal  Code,  Appendix.] 

An  act  to  amend  the  laws  relating  to  internal  revenue,  approved 
March  1,  1879  (20  Stat.,  327). 

Reduced  tax  on  tobacco  and  many  important  changes  made. 
Forty-sixth  Congress. 

An  act  relating  to  vinegar  factories  established  and  operated  prior  to 
March  1,  1879,  approved  June  14,  1879  (21  Stat.,  20).     [Sec,  3282.] 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June  30, 
1880,  and  for  other  purposes,  approved  June  21.  1879  (21  Stat.,  23). 

Salary  of  storekeepers  limited. 

An  act  providing  for  the  binding  of  the  Internal-Revenue  Laws  and 
Manual,  approved  June  27,  1879  (21  Stat.,  35). 

An  act  authorizing  an  allowance  for  loss  hy  leakage  or  casualty  of 
spirits  withdrawn  from  distillery  warehouses  for  exportation,  ap- 
proved December  20,  1879  (21  Stat.,  59). 

An  act  to  amend  the  laws  in  relation  to  internal  revenue,  approved 
May  28,  1880  (21  Stat.,  145). 

"Carlisle  bill."     Repealed  provision  charging  10  cents  for  stamps  other  than 
tax-paid  or  export, 

An  act  to  amend  sections  3385  and  3357  of  the  Revised  Statutes  of 
the  United  States,  approved  June  9,  1880  (21  Stat,,  167). 

An  act  to  amend  the  sixth  subdivision  of  section  3244  of  the  Revised 
Statutes  of  the  United  States,  approved  June  16,  1880  (21  Stat.,  291). 

Forty-seventh  Congress. 

An  act  to  repeal  so  much  of  section  3385  of  the  Revised  Statutes  as 
imposes  an  export  tax  on  tobacco,  approved  August  8,  1882  (22  Stat., 
372). 

An  act  to  amend  section  3362  of  the  Revised  Statutes  relating  to 
the  tax  on  penque  tobacco,  approved  January  9,  1883  (22  Stat.,  401). 


24  INTERNAL-REVENUE   LAWS. 

An  act  relating  to  exportation  of  tobacco,  snuff,  and  cigars,  in  bond, 
free  of  tax  to  adjacent  foreign  territory,  approved  January  13,  1883 
(22  Stat.,  402). 

An  act  to  reduce  internal-revenue  taxation,  and  for  other  purposes, 
approved  March  3,  1883  (22  Stat.,  488). 

Reduced  tax  on  tobacco  to  8  cents  per  pound  and  repealed  stamp  taxes  on 
bank  checks,  matches,  perfumery,  medicinal  preparations,  and  other  articles 
imposed  by  Schedule  A  following  section  3437,  Revised  Statutes. 

Forty-eighth  Congress. 

An  act  to  limit  the  time  within  which  prosecutions  may  be  instituted 
against  persons  charged  with  violating  internal-revenue  laws,  ap- 
proved July  5,  1884  (23  Stat.,  122). 

Ad  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1885,  and  for  other  purposes,  approved  July  7,  18*84  (23  Stat.,  172). 

Similar  act  for  fiscal  year  ending  June  30,  1886,  approved  March 
3,  1885  (23  Stat.,  404).  " 

Forty-ninth  Congress. 

An  act  to  amend  section  3336  of  the  Revised  Statutes  of  the  United 
States,  approved  April  29,  1886  (24  Stat.,  15). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1887,  and  for  other  purposes,  approved  July  31,  1886  24  Stat.,  187). 

An  act  defining  butter,  also  imposing  a  tax  upon  and  regulating 
the  manufacture,  sale,  importation,  and  exportation  of  oleomargarine, 
approved  August  2,  1886  (24  Stat.,  209). 

An  act  to  provide  for  the  inspection  of  tobacco,  cigars,  and  snuff,  and 
to  repeal  section  3151  of  the  Revised  Statutes,  approved  August  4, 
1886  (24  Stat.,  218). 

Fiftieth  Congress. 

An  act  to  prevent  the  manufacture  or  sale  of  adulterated  food  or  drugs 
in  the  District  of  Columbia,  approved  October  12,  1888  (25  Stat.,  549). 

Practically  repealed  l»v  the  "Act  relating  to  the  adulteration  of  foods  and 
drugs  in  the  District  of  Columbia,"  approved  February  17,  1898  (30  Stat.,  246). 

An  act  to  provide  for  warehousing  fruit  brandy,  approved  October 
IS,  1SSS  (25  Stat.,  560). 

An  act  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  .lime  30,  1890,  and  for  other  pur- 
poses, approved  March2,  1889  (25  Stat.,  939). 

Fifty-first  ( 'ongress. 

An  act  (o  provide  for  certain  of  the  most,  urgent  deficiencies  in  the 
appropriations  for  (he  service  of  the;  Government  for  the  fiscal  year 
ending  June  30,  1890,  and  for  other  purposes,  approved  April  4,  1890 
(26  Stat.,  34). 

An  ad  to  amend  section  3354,  Revised  Statutes,  approved  June 
is,  L890  (26Stat.,  Mil). 

Removal  of  beer  for  bottling  by  a  pipe  line  or  conduit. 


INTERNAL-REVENUE   LAWS.  25 

An  act  to  provide  for  the  exportation  of  fermented  liquor  in  bond 
without  payment  of  internal-revenue  tax,  approved  June  18,  1890 
(26  Stat.,  162). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1891,  approved  July  11,  1890  (26  Stat.,  228). 

An  act  making  appropriations  to  supply  deficiencies  in  the  appro- 
priations for  the  fiscal  year  ending  June  30,  1890,  and  for  prior  years, 
and  for  other  purposes,  approved  September  30,  1890  (26  Stat.,  504). 

An  act  to  reduce  the  revenue  and  equalize  the  duty  on  imports,  and 
for  other  purposes,  approved  October  1,  1890  (26  Stat.,  567). 

"McKinley  bill."  Imposed  tax  on  opium,  authorized  bounty  on  sugar, 
reduced  tax  on  tobacco  to  6  cents  per  pound,  special-tax  year  to  commence 
July  1. 

An  act  to  authorize  the  payment  of  drawback  or  rebate  in  certain 
cases,  approved  December  18,  1890  (26  Stat.,  689). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Governn  ent  for  the  fiscal  year  ending  June  30, 

1892,  approved  March  3,  1891  (26  Stat.,  862). 

An  act  making  appropriations  for  the  Department  of  Agriculture  for 
the  fiscal  year  ending  June  30,  1892,  approved  March  3,  1891  (26  Stat., 
1050). 

Removal  of  distilled  spirits  free  of  tax  for  making  sugar  from  sorghum. 

Fifty -second  Congress. 

An  act  to  prohibit  the  coming  of  Chinese  persons  into  the  United 
States,  approved  May  5,  1892  (27  Stat.,  25). 

The  "Geary  bill."  Certificates  oi  residence  to  be  obtained  from  collector  of 
internal  revenue.  This  act  was  amended  by  the  act,  approved  November  3, 
1893,  known  as  the  "McCreary  bill"  (28  Stat.,  7).  This  matter  is  now  under 
the  Commissioner  General  of  Immigration.  (Sec.  7,  act  of  Feb.  14,  1903,  32 
Stat.,  828). 

An  act  making  appropriations  for  the  legislative,  executive,  and  judi- 
cial expenses  of  the  Government  for  the  fiscal  year  ending  June  30, 

1893,  and  for  other  purposes,  approved  July  16,  1892  (27  Stat.,  183). 
An  act  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  June  30,  1894,  and  for  other  pur- 
poses, approved  March  3,  1893  (27  Stat.,  572). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June  30, 

1894,  and  for  other  purposes,  approved  March  3,  1893  (27  Stat.,  675). 

Fifty -third  Congress. 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June  30, 

1895,  and  for  other  purposes,  approved  July  31,  1894  (28  Stat.,  162). 

Contains  "The  Dockery  Bill." 

An  act  to  provide  for  the  collection  of  internal  revenue,  and  for 
other  purposes,  approved  August  27,  1894  (28  Stat.,  508). 


26  INTERNAL-REVENUE    LAWS. 

An  act  to  reduce  taxation,  to  provide  revenue  for  the  support  of  the 
Government,  and  for  other  purposes,  became  a  law  without  the  Presi- 
dent's approval,  in  effect  August  28,  1894  (28  Stat.,  509). 

"The  Wilson  Bill"  imposed  an  income  tax,  since  declared  unconstitu- 
tional. Tax,  2  per  cent  upon  incomes  over  $4,000.  Law  declared  unconstitu- 
tional May  20,  1895  (Pollock  v.  The  Farmers'  Loan  &  Trust  Company,  and 
Hyde  v.  The  Continental  Trust  Co.,  of  N.  Y.),  on  the  ground  that  the  tax  was 
a  direct  tax  (158  U.  S.,  601). 

The  court  had  previously  held  the  law  was  unconstitutional  as  far  as  it  sought 
to  tax  rents  and  income  from  real  estate,  and  income  from  State,  county,  and 
municipal  bonds  (157  U.  S.,  429).  Reimposed  tax  on  playing  cards.  Repealed 
bounty  on  sugar. 

(Became  a  law  August  27  according  to  Supp.  R.  S.,  vol.  2,  p.  334.  See 
United  States  v.  Burr,  159  U.  S.,  78.) 

An  act  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  June  30,  1896,  and  for  other  pur- 
poses, approved  March  2,  1895  (28  Stat.,  910). 

Bounty  on  sugar — payment  on  production  prior  to  August  28,  1894. 
Fifty-fourth  Congress. 

An  act  to  repeal  section  61  of  an  act  to  reduce  taxation,  to  pro- 
vide revenue  for  the  Government,  and  for  other  purposes,  which 
became  a  law  August  28, 1894,  approved  June  3,  1896  (29  Stat.,  195). 

Repeals  provision  exempting  alcohol  used  in  the  arts  from  tax. 

An  act  to  amend  section  3255  of  the  Revised  Statutes  of  the 
United  States,  concerning  the  distilling  of  brandy  from  fruits,  ap- 
proved June  3,  1896  (29  Stat.,  195). 

An  act  defining  cheese,  and  also  imposing  a  tax  upon  and  regulating 
the  manufacture,  sale,  importation,  and  exportation  of  "filled  cheese," 
approved  June  6,  1896  (29  Stat.,  253). 

An  act  to  allow  the  hottling  of  distilled  spirits  in  oond,  approved 
March  3,  1897  (29  Stat.,  626). 

An  act  to  amend  section  40  of  "An  act  to  reduce  the  revenue  and 
equalize  duties  on  imports,  and  for  other  purposes,"  approved  October 
1,  1890,  so  as  to  authorize  tlie  sale  of  forfeited  domestic  smoking 
opium  to  the  highest  bidder,  approved  March  3,  1S97  (29  Stat.,  695). 

Fifty-ffth  Con giu  ss . 

An  ad  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernmenl  for  the  fiscal  year  ending  June  30,  1898,  and  for  other  pur- 
poses, approved  June  4,  1897  (30  Stat.,  11). 

Bounty  on  sugar    paymenl  of  balance  of  claims,  etc. 

An  lie!  <o  provide  revenue  for  the  Government  and  to  encourage  the 
indust  rics  of  the  I  fnited  States,  approved  July  _'4,  1897  (30  Stat.,  151). 

The  •■  l>i\<.i.i:v  I  Si  1 1."     Amended  sections  334]  and  3394,  Revised  Statutes. 

An  art  to  provide  ways  and  means  to  meet  wax  expenditures,  and 
for  other  purposes,  approved  June  13.  1898  (30  Stat.,  448). 

War-revenue  act.  Additional  special  taxes  imposed;  increased  tax  on  fer- 
mented liquors,  tobacco,  and  cigars;  imposed  Legacy  taxes,  tax  oil  mixed  flour, 
stamp  i.i \>    '.ii  Instruments,  etc. 


INTERNAL-REVENUE   LAWS.  27 

An  act  making  appropriations  to  supply  deficiencies  in  the  appro- 
priations for  the  fiscal  year  ending  June  30,  1898,  and  for  prior  years, 
and  for  other  purposes,  approved  July  7,  1898  (30  Stat.,  652). 

Relative  to  payment  of  gaugers  of  fruit  brandy — additional  temporary  force 
in  Internal-Revenue  Service. 

An  act  to  amend  section  3287  of  the  Revised  Statutes  of  the 
United  States,  concerning  the  drawing  off,  gauging,  marking,  and 
removal  of  spirits,  approved  February  21,  1899  (30  Stat.,  843). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1900,  and  for  other  years,  approved  February  24,  1899  (30  Stat., 
864). 

Term  of  temporary  service  of  additional  clerks  extended  one  year. 

(Public  Resolution — No.  22.)  Joint  resolution  to  amend  sec- 
tion 25  of  the  act  passed  June  13,  1898,  entitled  "An  act  to  provide 
ways  and  means  to  meet  war  expenditures,  and  for  other  purposes," 
approved  February  28,  1899  (30  Stat.,  1390). 

Bonds  secured  by  mortgages,  but  one  stamp  required,  etc. 

An  act  to  amend  the  internal-revenue  laws  relating  to  distilled 
spirits,  and  for  other  purposes,  approved  March  3,  1899  (30  Stat., 
1349). 

Allowance  on  loss  in  warehouse. 

An  act  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  June  30,  1900,  and  for  other  years, 
approved  March  3,  1899  (30  Stat.,  1091). 

Fifty-sixth  Congress. 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1901,  and  for  other  purposes,  approved  April  17,  1900  (31 
Stat.,  86). 

An  act  to  provide  a  government  for  the  Territory  of  Hawaii, 
approved  April  30,  1900  (31  Stat.,  141).  Takes  effect  forty-five 
days  from  and  after  the  date  of  approval,  that  is,  on  June  14,  1900. 

An  act  authorizing  the  Commissioner  of  Internal  Revenue  to  redeem 
or  make  allowance  for  internal-revenue  stamps,  approved  May  12, 
1900  (31  Stat.,  177). 

An  act  making  appropriations  for  sundry  civil  expenses  of  the 
Government  for  the  fiscal  year  ending  June  30,  1901,  and  for  other 
purposes,  approved  June  6,  1900  (31  Stat.,  588). 

An  act  to  amend  section  3255  of  the  Revised  Statutes  of  the 
United  States  concerning  the  distilling  of  brandy  from  fruits,  approved 
February  4,  1901  (31  Stat.,  759). 

An  act  to  amend  an  act  entitled  "An  act  to  provide  ways  and 
means  to  meet  war  expenditures,  and  for  other  purposes,"  approved 
June  13,  1898,  and  to  reduce  taxation  thereunder,  approved  March 
2,  1901  (31  Stat.,  938). 

Revenue  reduction  act.     Repealed  certain  war  revenue  taxes  after  July  1, 
1901. 


28  INTERNAL-REVENUE   LAWS. 

ACTS  SINCE  SUPPLEMENT  REVISED  STATUTES,  VOL.   2,   PART  9. 

Fifty-seventh  Congress. 

Joint  resolution  authorizing  the  Commissioner  of  Internal  Revenue 
to  return  bank  checks,  drafts,  certificates  of  deposit,  and  orders  for 
the  payment  of  money,  having  imprinted  stamp  thereon,  to  the 
owners  thereof,  and  for  other  purposes,  approved  February  26,  1902 
(32  Stat.,  736). 

An  act  temporarily  to  provide  revenue  for  the  Philippine  Islands, 
and  for  other  purposes,  approved  March  8,  1902  (32  Stat.,  54). 

An  act  to  repeal  war-revenue  taxation,  and  for  other  purposes, 
approved  April  12,  1902;  taking  effect  July  1,  1902  (32  Stat.,  96). 

An  act  to  make  oleomargarine  and  other  imitation  dairy  products 
subject  to  the  laws  of  any  State  or  Territory  or  the  District  of  Colum- 
bia into  which  they  are  transported,  and  to  change  the  tax  on  oleo- 
margarine, and  to  impose  a  tax,  provide  for  the  inspection,  and  to 
regulate  the  manufacture  and  sale  of  certain  dairy  products,  and  to 
amend  an  act  entitled  "An  act  defining  butter,  also  imposing  a  tax 
upon  and  regulating  the  manufacture,  sale,  importation,  and  exporta- 
tion of  oleomargarine,"  approved  August  2,  1886.  Approved  May  9, 
1902;  taking  effect  July  1,  1902  (32  Stat.,  193). 

New  rate  of  tax  on  oleomargarine. 

An  act  to  provide  for  refunding  taxes  paid  upon  legacies  and 
bequests  for  uses  of  a  religious,  charitable,  or  educational  character, 
for  the  encouragement  of  art,  etc.,  under  the  act  of  June  13,  1898,  and 
for  other  purposes,  approved  June  27,  1902  (32  Stat.,  406). 

An  act  to  amend  the  internal-revenue  laws  in  regard  to  storekeepers 
and  gangers,  approved  Juno  28,  1902  (32  Stat.,  492). 

An  act  to  amend  the  act  of  May  12,  1900,  authorizing  the  Commis- 
sioner of  Internal  Revenue  to  redeem  or  make  allowance  for  internal- 
revenue  stamps,  approved  June  30,  1902  (32  Stat.,  506). 

An  act  to  amend  sections  3362  and  3394  of  the  Revised  Statutes 
of  the  United  States,  relating  to  tobacco,  approved  July  1,  1902  (32 
Stat.,  714). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1903,  and  for  other  purposes,  approved  April  28,  1902  (32  Stat., 
120). 

Temporary  clerks  transferred  to  the  classified  service. 

An  act  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernment for  the  fiscal  vear  ending  June  30,  1903,  and  for  other  pur- 
pose^ approved  June  28,  1902  (32  Stat.,  419). 

Au  act  to  amend  the  internal-revenue  laws,  approved  Januaryl3, 
1903  (32  Stat.,  770). 

Outage  bill. 

An  acl  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  tne  Government  for  the  fiscal  year  ending  June 
30,   L904,  and  for  oilier  purposes,  approved  February  25,   1903  (32 

Slat.,  877). 

Twenty  additional  revenue  agents  provided  for  in  lieu  of  those  provided  for 
by  sections  3  and  17  of  the  act  of  June  L3,  L898. 


INTERNAL-REVENUE   LAWS.  29 

An  act  making  appropriation  to  supply  deficiencies  for  the  year 
ending  June  30,  1903,  and  prior  years,  approved 'March  3,  1903  (32 
Stat.,  1040). 

Relative  to  claims  for  rebate  on  packages  of  tobacco  and  snuff. 
Fifty-eighth  Congress. 

An  act  to  relieve  obligors  on  bonds  given  to  the  United  States 
upon  the  exportation  to  the  Philippine  Islands  prior  to  November  20, 
1901,  of  articles  subject  to  internal-revenue  tax,  approved  April  28, 
1904  (33  Stat.,  574). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1906,  and  for  other  purposes,  approved  February  3,  1905  (33  Stat., 
631,  652). 

Fifty-ninth  Congress. 

An  act  making  appropriations  to  supply  urgent  deficiencies  in  the 
appropriations  for  the  fiscal  year  ending  June  30,  1906,  and  for  prior 
years  and  for  other  purposes,  approved  February  27, 1906  (34  Stat.,  49). 

Expenditures  in  excess  of  appropriations  forbidden. 

An  act  for  the  withdrawal  from  bond,  tax  free,  of  domestic  alcohol 
when  rendered  unfit  for  beverage  or  liquid  medicinal  uses  by  mixture 
with  suitable  denaturing  materials,  approved  June  7,  1906;  taking 
effect  January  1,  1907  (34  Stat.,  217). 

Denatured  alcohol  act. 

An  act  to  amend  existing  laws  relating  to  the  fortification  of  pure 
sweet  wines,  approved  June  7,  1906  (34  Stat.,  215). 

An  act  to  amend  the  internal-revenue  laws  so  as  to  provide  for 
furnishing  certified  copies  of  certain  records,  approved  June  21,  1906 
(34  Stat.,  387). 

An  act  to  provide  means  for  the  sale  of  internal-revenue  stamps  in 
the  island  of  Porto  Rico,  approved  June  29,  1906  (34  Stat.,  620). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30, 1907,  and  for  other  purposes,  approved  June  22, 1906  (34  Stat.,  389). 

An  act  making  appropriations  for  sundry  civil  expenses  of  the 
Government  for  the  fiscal  year  ending  June  30,  1907,  and  for  other 
purposes,  approved  June  30,  1906  (34  Stat.,  697). 

Fifty-ninth  Congress. 

An  act  to  amend  an  act  entitled  "An  act  for  the  withdrawal  from 
bond  tax  free  of  domestic  alcohol  when  rendered  unfit  for  beverage 
or  liquid  medicinal  uses  by  mixture  with  suitable  denaturing  mate- 
rials," approved  June  7,  1906.  Approved  March  2,  1907  (34  Stat., 
1250). 

An  act  making  appropriations  to  supply  deficiencies  in  the  appro- 
priations for  the  fiscal  year  ending  June  30,  1907,  and  for  prior  years, 
and  for  other  purposes,  approved  March  4,  1907,  11  a.  m.  (34  Stat., 
1373). 


30  INTERNAL-REVENUE    LAWS. 

Sixtieth  Congress. 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1909,  and  for  other  purposes,  approved  May  22,  1908  (35  Stat., 
184). 

An  act  making  appropriations  for  sundry  civil  expenses  of  the  Gov- 
ernment for  the  fiscal  year  ending  June  30,  1909,  and  for  other  pur- 
poses, approved  May  27,  1908  (35  Stat.,  317). 

An  act  to  provide  for  refunding  stamp  taxes  paid  under  the  act  of 
June  13,  1898,  upon  foreign  bills  of  exchange,  etc.,  approved  Febru- 
ary 1,  1909  (35  Stat.,  590). 

An  act  to  impose  a  tax  upon  alcoholic  compounds  coming  from  Porta 
Rico,  and  for  other  purposes,  approved  February  4,  1909  (35  Stat., 
594). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  for  the  fiscal  year  ending  June  30,  1910,  and  for 
other  purposes,  approved  March  4,  1909  (35  Stat.,  845). 

Sixty -first  Congress. 

An  act  to  provide  revenue,  equalize  duties,  and  encourage  the 
industries  of  the  United  States,  and  for  other  purposes,  approved 
August  5,  1909  (36  Stat.,  11). 

Payne-Aldrich  bill.     Excise  Tax  on  Corporations. 

An  act  making  appropriations  to  supply  urgent  deficiencies  in 
appropriations  for  the  fiscal  year  1909,  and  for  other  purposes, 
approved  August  5,  1909  (36  Stat.,  118). 

An  act  to  amend  section  63  of  the  act  of  August  28,  1894  (28  Stat., 
567),  approved  May  13,  1910  (36  Stat.,  369). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June, 
30,  1911,  and  for  other  purposes.  Approved,  June  17,  1910  (36  Stat., 
468). 

An  act  to  amend  paragraph  2  of  section  3264,  Revised  Statutes  of 
the  United  States,  as  amended  by  section  5  of  the  act  of  March  1, 
1879,  and  section  3285,  Revised  Statutes  of  the  United  States,  as 
amended  by  section  3  of  the  act  of  May  28,  1880,  approved  June  22, 
1910  (36  Si  it.,  590). 

An  act  grant  ing  cumulative  annual  leave  of  absence  to  storekeepers, 
gaugers,  and  storekeeper-gaugers,  with  pay,  approved  June  23,  1910 
(36  Stat.,  592). 

An  act  making  appropriations  to  supply  deficiencies  in  appropria- 
tions for  the  fiscal  v<  ar  1910,  and  for  other  purposes,  approved  June 
25,  1910  (36  Stat.,  77  1,  780). 

Add  I  force  authorized  to  carry  into  effect  provisions  of  the  corpora- 

tion tax  act. 

An  act  to  amend  t  he  provisions  of  the  act  <>f  March  3,  1885,  limit  ing 
the  compensation  of  storekeepers,  gaugers,  and  storekeeper-gangers  in 
certain  eases  to  $2  a  day,  and  for  other  purposes,  approved,  February 
24,  L911  (36  Stat.,  928). 

An  aci  to  amend  the  internal-revenue  laws  relating  to  distilled 
spirits,  and  lot  other  purposes^  approved,  March  2, 1911  (36  Stat.,  1014). 


INTERNAL-REVENUE   LAWS.  31 

An  act  to  amend  section  3287  of  the  Revised  Statutes  of  the  United 
States  as  amended  by  section  6  of  chapter  108  of  an  act  approved 
May  28,  1880,  page  145,  volume  21,  United  States  Statutes  at  Large, 
approved March2, 1911  (36Stat., 1014).  Amends  section3255  Revised, 
Statutes. 

An  act  to  authorize  the  receipt  of  certified  checks  drawn  on  national 
and  State  banks  for  duties  on  imports  and  internal  taxes,  and  for 
other  purposes,  approved  March  2,  1911  (36  Stat.,  9G5). 

An  act  making  appropriations  for  the  legislative,  executive,  and 
judicial  expenses  of  the  Government  for  the  fiscal  year  ending  June 
30,  1912,  and  for  other  purposes,  approved  March  4,  1911  (36 
Stat.,  1170). 

PEOVISIONS  RELATIVE  TO  ACTS   OF  REPEAL. 

Sec.  12,  R.  S.  Whenever  an  act  is  repealed,  which  repealed  a  former 
act,  such  former  act  shall  not  thereby  be  revived,  unless  it  shall  be 
expressly  so  provided. 

Sec.  13,  R.  S.  The  repeai  of  any  statute  shall  not  have  the  effect  to 
release  or  extinguish  any  penalty,  forfeiture,  or  liability  incurred  under 
such  statute,  unless  the  repealing  act  shall  so  expressly  provide,  and 
such  statute  shall  be  treated  as  still  remaining  in  force  for  the  purpose 
of  sustaining  any  proper  action  or  prosecution  for  the  enforcement  of 
such  penalty,  forfeiture,  or  liability. 

This  provision  (sec.  13  R.  S.),has  been  upheld  by  the  courts  as  a  rule 
of  construction  applicable,  when  not  otherwise  provided,  as  a  general 
saving  clause  to  be  read  and  construed  as  a  part  of  all  subsequent 
repealing  statutes,  in  order  to  give  effect  to  the  will  and  intent  of  Con- 
gress. (Hertz  v.  Woodman.  218  U.  S.,  205  (T.  D.  1636),  quoting 
United  States  v.  Reisinger,  128  U.  S.,  398:  Great  Northern  Ry.  Co.  v. 
United  States,  208  U.  5.,  452). 

Sec.  72,  act  August  28,  1894  (28  Stat.,  509),  repealing  and  saving 
clause. 

Sec.  41,  act  of  August  5,  1909  (36  Stat.,  90),  repealing  and  saving 
clause. 

Repeals  by  implication  are  not  favored,  particularly  in  revenue  laws,  and 
will  only  be  held  to  exist  when  the  repugnance  is  positive,  and  then  only  to 
the  extent  of  the  repugnance.  (United  States  v.  100  Barrels  Spirits,  12  Int. 
Rev.  Rec,  153.) 

Nothing  is  better  settled  than  that  repeals,  and  tne  same  may  be  said  of 
annulments,  by  implication,  are  not  favored  by  the  courts,  and  that  no  statute 
will  be  construed  as  repealing  a  prior  one,  unless  so  clearly  repugnant  thereto 
as  to  admit  of  no  other  reasonable  construction.  (Cope  v.  Cope,  137  U.  S., 
682,  and  cases  cited.) 

A  later  statute  covering  the  whole  subject-matter  of  a  former  one  where 
the  objects  of  the  two  statutes  are  the  same  operates  as  a  repeal.  (United 
States  v.  Claflin,  97  U.  S.,  546.     See  also  United  States  v.  Tynen,  11  Wall.,  88.) 

When  a  later  statute  is  a  complete  revision  of  the  subject  to  which  the  earlier 
statute  related  and  the  new  legislation  was  manifestly  intended  as  a  substitute 
for  the  former  legislation,  the  prior  act  must  be  held  to  have  been  repealed. 
(United  States  v.  Ranlett  and  Stone  (1898,  172  U.  S.,  133.) 


SCHEDULE    OF  ARTICLES  AND    OCCUPATIONS    SUBJECT 

TO   TAX. 


Taxes  Payable  by  Stamp. 


SPECIAL   TAXES. 

Rate  of  tax. 

Rectifiers  of  less  than  500  barrels  a  year $100. 00 

Rectifiers  of  500  barrels  or  more  a  year 200.  00 

Wholesale  liquor  dealers 100.  00 

Retail  liquor  dealers 25.  00 

Wh<  ili  'sale  dealers  in  malt  liquors 50. 00 

Retail  dealers  in  malt  liquors 20.  00 

Manufacturers  of  stills 50.  00 

And  for  stills  or  worms  manufactured,  each 20. 00 

Brewers: 

Annual  manufacture  less  than  500  barrels 50.  00 

Annual  manufacture  500  barrels  or  more 100.  00 

Manufacturers  of  filled  cheese 400. 00 

Wholesale  dealers  in  filled  cheese 250.  00 

Retail  dealers  in  filled  cheese 12. 00 

Manufacturers  of  oleomargarine 600. 00 

Wholesale  dealers  in  oleomargarine  artificially  colored  in  imitation  of 

butter 480. 00 

Wholesale  dealers  in  oleomargarine  free  from  artificial  coloration 200.00 

Retail  dealers  in  oleomargarine  artificially  colored  in  imitation  of  butter. .  48. 00 

Retail  dealers  in  oleomargarine  free  from  artificial  coloration G.  00 

Manufacturers  of  adulterated  butter 600. 00 

Wholesale  dealers  in  adulterated  butter 480. 00 

Retail  dealers  in  adulterated  butter 48.  00 

Manufacturers  of  process  or  renovated  butter 50.  00 

Manufacturers,  packers,  or  repackers  of  mixed  flour 12. 00 


TOBACCO   AND   SNUFF. 


Tobacco,  however  prepared,  manufactured  and  sold,  or  removed  for  con- 
sumption or  sale,  per  pound 

Snuff,  however  prepared,  manufactured  and  sold,  or  removed  for  con- 
sumption or  sale,  per  pound 


CIGARS   AND   CIGARETTES. 


Rate  of  tax, 

after  July  1, 

1910. 

$0.08 
.08 


Rate  of  tax 
per  thousand 
after  July  1, 
1910. 


Cigars  of  all  descriptions  made  of  tobacco,  or  any  substitute  therefor,  and 

weighing  more  than  3  pounds  per  thousand $3.  00 

Cigars  of  all  descriptions  made  of  tobacco,  or  any  substitute  therefor,  and 

weighing  not  more  than  3  pounds  per  thousand .75 

Cigarettes  weighing  not  more  than  3  pounds  per  thousand 1.  25 

Cigarettes  weighing  more  than  3  pounds  per  thousand 3.  60 

DISTILLED    SPIRITS,  ETC. 

Rate  of  tax. 

Distilled  spirits,  per  gallon $1. 10 

Stamps  for  distilled  spirits  intended  for  export,  each .10 

Except  when  affixed  to  packages  containing  two  or  more  5-gallon  cans 

for  export .05 

72170°— 11 3  33 


34 


ARTICLES    AND    OCCUPATIONS   SUBJECT   TO    TAX. 


Rate  of  tax. 

Case  stamps  for  spirits  bottled  in  bond $0.10 

Wines,  liquors,  or  compounds  known  or  denominated  as  wine,  and  made 
iii  imitation  of  sparkling  wine  or  champagne,  but  not  made  from  grapes 
grown  in  the  United  States,  and  liquors  not  made  from  grapes,  currants, 
rhubarb,  or  berries  grown  in  the  United  States,  but  produced  by  be- 
ing rectified  or  mixed  with  distilled  spirits  or  by  the  infusion  of  any 
matter  in  spirits,  to  be  sold  as  wine,  or  as  a  substitute  for  wine,  in  bot- 
tles containing  not  more  than  1  pint,  per  bottle  or  package .10 

Same,  in  bottles  containing  more  than  1  pint,  and  not  more  than  1  quart, 

per  bottle  or  package .20 

(And  at  the  same  rate  for  any  larger  quantity  of  such  merchandise, 
however  put  up  or  whatever  may  be  the  package.) 

FERMENTED    LIQUORS. 

Fermented  liquors  per  barrel,  containing  not  more  than  31  gallons 1.00 

(And  at  a  proportionate  rate  for  halves,  thirds,  quarters,  sixths,  and 
eighths  of  barrels.) 
More  than   1   barrel  of  31  gallons,  and  not  more  than   63  gallons,  in  1 

package 2. 00 

OLEOMARGARINE. 

Oleomargarine,  domestic,  artificially  colored  to  look  like  butter,  of  any 

shade  of  yellow,  per  pound .10 

Oleomargarine,  free  from  coloration  that  causes  it  to  look  like  butter,  of 

any  shade  of  yellow,  per  pound .  00| 

Oleomargarine.  imported  from  foreign  countries,  per  pound .15 

ADULTERATED  BUTTER  AND  PROCESS  OR  RENOVATED  BUTTER. 

Adulterated  butter,  per  pound .10 

Process  or  renovated  butter,  per  pound .  00£ 

FILLED    CHEESE. 

Filled  cdieese.  per  pound .01 

Same,  imported,  per  pound .08 

OPIUM. 

Prepare  1  Bmoking  opium,  per  pound 10.00 

PLAYING    CARDS. 

Playing  card.-,  per  pack,  containing  not  more  than  51  cards .02 

MIXED   FLOUR. 

Mixed  flour,  per  barrel  of  196  pounds,  or  more  than  98  pounds .04 

Ealf  barrel  of  98  pounds,  or  more  than  49  pounds .02 

rter  barrel  of  49  pounds,  or  more  than  2-U,  pounds .01 

Eighth  barrel  of  2 1  \  pounds  or  less .  00^ 

Mixed  flour  imported  Erom  foreign  countries,  in  addition  to  impori 
duties,  must  pay  internal-revenue  tax  as  above.) 

Taxes  not  Payable  nv  Stamp, 

I.  Excise  tax  on  corporal  ions  I  payable  on  or  before  June  30) I  per  cenl 

on  net  in- 
come in 
excess  of 
$5,000. 

•_'.  Circulation  issued  by  any  bank,  etc.,  or  pera sxcepl  a  national 

bank  taxed  under  section  52]  I.  Revi  ed  Statutes,  and  section  L3,  act 

March  I  1.  L900  .  per  month ,\:  of  I  p.  <•. 

3.  Circulation  (except  national  banks)  exceeding  90  per  cenl  of  capital, 

in  addition,  per  month '  "I"  I  p.  c. 


ARTICLES   AND    OCCUPATIONS    SUBJECT   TO    TAX. 


35 


Rate  of  tax. 

4.  Banks,  etc.,  on  amount  of  notes  of  any  person,  State  bank,  or  State 

banking  association,  used  for  circulation  and  paid  out 10  per  cent 

5.  Banks,  etc.,  bankers,  or  associations,  on  amount  of  notes  of  any  town, 

city,  or  municipal  corporation  paid  out  by  them 10  per  cent 

6.  Every  person,  firm,  association,  other  than  national  banking  associa- 

tions, and  every  corporation,  State  bank,  or  State  banking  asso- 
ciation, on  the  amount  of  their  own  notes  used  for  circulation  and 
paid  out  by  them 10  per  cent 

7.  Every  such  person,  firm,  association,  corporation,  State  bank,  or  State 

banking  association,  and  also  every  national  banking  association, 
on  the  amount  of  notes  of  any  person,  firm,  association,  other  than 
a  national  banking  association,  or  of  any  corporation,  State  hank, 
or  State  banking  association,  or  of  any  town,  city,  or  municipal 
corporation,  used  for  circulation  and  paid  out  by  them 10  per  cent 

8.  On  deficiencies  in  production  of  spirits. 

9.  On  spirits  which  excess  of  materials  used  should  produce  under  survey. 

10.  On  spirits  produced  and  not  accounted  for. 

11.  Grape  brandy  used  in  the  fortification  of  pure  sweet  wine  under  an 

act  approved  June  7,  190(5  (to  be  assessed),  per  gallon $0.  03 

12.  Taxes  payable  by  stamps  not  paid  at  the  time  and  in  the  manner 

required  by  law. 

Fees  and  Penalties. 


14 


15. 


13.  Fees  of  $1  for  100  words  or  fraction  thereof  authorized  by  law  to  be 
charged  by  collectors  for  furnishing  certified  copies  of  lists  of  special 
taxpayers  upon  application  of  prosecuting  officers  of  any  State, 
county,  or  municipality. 

Penalties  of  50  per  cent  and  100  per  cent  incurred  by  taxpayers  for 
failure  to  make  certain  returns  showing  liability,  or  for  making 
false  returns,  respectively. 

Penalty  of  5  per  cent  for  failure  of  taxpayers  to  pay  assessed  taxes 
within  the  time  limited  by  law. 


Table  of  special  taxes  imposed. 


Designation  by  article  manufactured  or  sold,  etc. 

Manufac- 
turers. 

Wholesale 
dealers. 

Retail 
dealers. 

Miscellane- 
ous. 

Brewers  of  less  than  500  barrels 

$50 

Brewers  of  500  barrels  or  more 

100 

Butter,  adulterated 

$000 

50 

400 

$480 

$48 

Butter,  process  or  renovated 

Filled  cheese 

250 

100 

50 

12 
25 
20 

Liquor 

Malt  liquor 

Mixed  flour,  making,  packing,  or  repacking. . 

12 
600 
600 

Oleomargarine 

480 
200 

48 
6 

Oleomargarine,  not  artificially  colored 

Rectifiers  of  less  than  500  barrels ■ 

100 

Rectifiers  of  500  barrels  or  more 

200 

Stills 

50 

For  each  s t ill  manufactured.. 

20 

For  each  worm  manufactured 1 

20 

1 

Circ.  No.  701,  June  17,  1907,  T.  I).  1181. 


36 


ARTICLES    AND    OCCUPATIONS    SUBJECT    TO    TAX. 


Table  of  special  taxes  and  50  per  cent  penalties. 


Commencing  busi- 
ness in — 


June 

May 

April 

March 

February. . 
January . . . 
December. 
November. 
October.. . 
September 

August 

July 


No.  of 

months 

liable. 


10 

11 


12 


Tax  or 

penalty. 


(Tax 

(Penalty 
I  Tax.... 
\Penalty 
[Tax.... 
\Penalty 
(Tax. . . . 
(Penalty 
(Tax.... 
(Penalty 
/Tax.... 
(Penalty 
(Tax.... 
(Penalty 

/Tax 

\  Penalty 
/Tax.... 
(Penalty 
I  Tax...'. 
(Penalty 
fTax.... 
(.Penalty 
I  Tax...'. 
\Penalty 


Annual  rate  in  dollars  and  cents. 


$20. 

$25. 

$50. 

$100. 

J200. 

$250. 

SI.  67 

<._>_,,,, 

84.17 

$8.34 

S10.  67 

$20.  S4 

.83 

1.04 

'-'.OS 

4.17 

8.33 

10.42 

3.34 

4.17 

8.34 

16.67 

33.34 

41.67 

1.G7 

2.08 

4.17 

8.33 

16.67 

20.83 

5.00 

6.25 

12.50 

25.00 

50. 00 

62.50 

2.50 

3.13 

6.25 

12.50 

25.00 

31.25 

6.67 

8.34 

16.67 

33. 34 

66.67 

83.34 

3.33 

4.  17 

8. 33 

L6.67 

:;;.:;:: 

41.67 

8.34 

10.42 

20.84 

41. (.7 

83. 34 

104. 17 

4.17 

5.21 

10.42 

20.83 

41.67 

52.08 

10. 00 

12.50 

25.00 

50.00 

! 

125.00 

5.00 

6. 25 

12.50 

25.00 

5  1.00 

62.50 

11.67 

14. 59 

29.17 

58. 34 

L16.67 

145.  M 

5.83 

7.29 

14.  58 

29. 17 

58.33 

72.  92 

13.34 

16.07 

..    ! 

66.67 

133. 34 

166.1  7 

6.67 

S.33 

16.67 

33.33 

66.67 

83. 33 

15.00 

18  75 

37.  "') 

75.00 

L50.00 

187. 50 

7.50 

9.3S 

18.  75 

37.50 

75.00 

93.75 

16.67 

20.84 

41.67 

83.34 

166.67 

8. 33 

10.42 

20.83 

41.1  7 

-  1.33 

104.  17 

18.34 

22. 92 

15  84 

L83  34 

229. 17 

9.  17 

11.46 

22.  92 

45.  83 

91.67 

114.58 

20.00 

25. 00 

50.00 

LOO.O  ) 

230.00 

250.  00 

10.00 

L2.50 

25.00 

50.00 

100. 00 

125. 00 

$400. 


$33. 34 

16.67 

66. 67 

33.33 

100. 00 

50. 00 

133. 34 

06.67 

166.67 

83.33 

200. 00 

100. 00 

233. 34 

116.67 

266.67 

133.33 

••JIKI.OIJ 

150. 00 
333. 34 
L66.67 
366.67 
183. 33 
400. 00 
2i  Hi.  1 10 


Regulations  Xo.  1  revised,  August  15,  1907,  p.  102. 


INTERNAL-REVENUE  COLLECTION  DISTRICTS  IN  THE 
UNITED  STATES,  WITH  LOCATION  OF  COLLECTORS' 
OFFICES. 


Alabama. — Collector's  office,  Birmingham. 

Alaska. — See  collector,  Tacoma,  Wash. 

Arizona. — Consolidated  with  New  Mexico.     Collector  s  office,  Santa  Fe,  N.  Mex. 

Arkansas. — Collector's  office,  Little  Rock. 

California. — First  district,  collector's  office,  San  Francisco;  fourth  district,  collec- 
tor's office,  Sacramento;  sixth  district,  collector's  office,  Los  Angeles. 

Colorado. — Collector's  office,  Denver. 

Connecticut. — Collector's  office,  Hartford. 

Dakota  (North  and  South). — Collector's  office,  Aberdeen,  S.  Dak. 

Delaware. — Consolidated  with  Maryland.     Collectors  office,  Baltimore,  Md. 

Districtof  Columbia — Consolidated  with  Maryland.    Collector's  office,  Baltimore,  Md . 

Florida. — Collector's  office,  Jacksonville. 

Georgia. — Collector's  office,  Atlanta. 

Hawaii. — Collector's  office,  Honolulu. 

Idaho. — Consolidated  with  Montana.     Collector's  office.  Salt  Lake  City,  Utah. 

Illinois. — First  district,  collector's  office,  Chicago;  fifth  district,  collector's  office, 
Peoria;  eighth  district,  collector's  office,  Springfield;  thirteenth  district,  collector's 
office,  East  St.  Louis. 

Indiana. — Sixth  district,  collector's  office,  Indianapolis;  seventh  district,  collector's 
office,  Terre  Haute. 

Iowa. — Third  district,  collector's  office,  Dubuque;  fourth  district,  collector's  office. 
Burlington. 

Kansas. — Collector's  office,  Leavenworth. 

Kentucky. — Second  district,  collector's  office,  Owensboro;  fifth  district,  collector's 
office,  Louisville;  sixth  district,  collector's  office,  Covington;  seventh  district,  col- 
lector's office,  Lexington;  eighth  district,  collector's  office,  Danville. 

Louisiana. — Collector's  office,  Xew  Orleans. 

Maine. — Consolidated  with  New  Hampshire.     Collector's  office,  Portsmouth,  N.  H. 

Maryland.— Collector's  office,  Baltimore. 

Massachusetts. — Collector's  office,  Boston. 

Michigan. — First  district,  collector's  office,  Detroit;  fourth  district,  collector's  office, 
Grand  Rapids. 

Minnesota. — Collector's  office,  St.  Paul. 

Mississippi. — Consolidated  with  Alabama.     Collector's  office,  Birmingham,  Ala. 

Missouri. — First  district,  collector's  office,  St.  Louis;  sixth  district,  collector's 
office,  Kansas  City. 

Montana. — Collector's  office,  Salt  Lake  City,  Utah. 

Nebraska. — Collector's  office,  Omaha. 

Nevada. — Consolidated  with  fourth  district  of  California.  Collector's  office,  Sacra- 
mento, Cal. 

New  Hampshire. — Collector's  office,  Portsmouth. 

New  Jersey. — First  district,  collector's  office,  Camden;  fifth  district,  collector's 
office,  Newark. 

New  Mexico. — Collector's  office,  Santa  Fe. 

New  York. — First  district,  collector's  office,  Brooklyn;  second  district,  collector's 
office,  New  York;  third  district,  collector's  office,  New  York;  fourteenth  district,  col- 
lector's office,  Albany;  twenty-first  district,  collector's  office,  Syracuse;  twenty- 
eighth  district,  collector's  office,  Rochester. 

North  Carolina. — Fourth  district,  collector's  office,  Raleigh;  fifth  district,  collector's 
office,  Statesville. 

Ohio. — First  district,  collector's  office,  Cincinnati;  tenth  district,  collector's  office, 
Toledo;  eleventh  district,  collector's  office,  Columbus;  eighteenth  district,  collector's 
office,  Cleveland. 

Oklahoma. — Collector's  office,  Oklahoma  City. 

Oregon. — Collector's  office,  Portland. 

37 


38  LIST   OF    COLLECTION    DISTRICTS. 

Pennsylvania. — First  district,  collector's  office,  Philadelphia;  ninth  district,  col- 
lector's office,  Lancaster;  twelfth  district,  collector's  office,  Scranton;  twenty-third 
district,  collector's  office,  Pittsburg. 

Rhode  Island. — Consolidated  with  Connecticut.     Collector's  office,  Hartford,  Conn. 

South  Carolina. — Collector's  office,  Columbia. 

Tennessee. — Consolidated  November  25,  1907.     Collector's  office,  Nashville. 

Texas. — Third  district,  collector's  office,  Austin;  fourth  district,  collector's  office, 
Dallas. 

Utah. — Consolidated  with  Montana.     Collector's  office,  Salt  Lake  City,  Utah. 

Vermont. — Consolidated  with  New  Hampshire.     Collector's  office,  Portsmouth,  N.  H. 

Virginia. — Second  district,  collector's  office,  Richmond;  sixth  district,  collector's 
office,  Abingdon. 

Washington. — Collector's  office,  Tacoma. 

West  Virginia. — Collector's  office,  Parkersburg. 

Wisconsin. — First  district,  collector's  office,  Milwaukee;  second  district,  collector's 
office,  Madison. 

Wyoming. — Consolidated  with  Colorado.     Collector's  office,  Denver,  Colo. 


LIST  OF  INTERNAL-REVENUE  REGULATIONS. 


Regulations. 

Subject. 

No.  1 

Concerning  assessments. 

No.  1,  sup.  No.  1 

No.  2,  revised 

Concerning  the  transfer  of  special-tax  stamps  (Treasury  Decision  1G37). 
Instructions  to  officers  concerning  their  accounts. 

No  3,  revised 

Concerning  tax  on  legacies  and  distributive  shares. 

No.     3,    revised    sup. 

No.  1. 
No.  5,  revised 

Opinions  of  the  U.  S.  Supreme  Court  in  legacy  tax  cases.     (Treasury  Decision 

129.) 
Concerning  special  bonded  warehouses  for  storage  of  fruit  brandy  made  from 

apples,  peaches,  or  grapes,  exclusively. 
Relative  to  tax  on  fermented  liquors. 
Relative  to  tax  on  distilled  spirits. 
Relative  to  the  distillation  of  brandy  made  exclusively  from  apples,  peaches, 

grapes,  pears,  pineapples,  apricots,  berries,  prunes,  figs,  orcherries, exclusively. 
Relating  to  taxes  on  tobacco,  snuff,  and  cigars. 

Regulations  concerning  oleomargarine,  adulterated  and  renovated  batter. 
Gauger's  manual. 
Gauger's  weighing  manual. 

Relating  to  revenue  officers,  district  attorneys,  marshals,  etc. 

No.  li.  revised 

No.  7,  revised 

No.  7,  revised,  extracts 

from. 
No.  8,  revised 

No.  9,  revised 

No.  11,  revised 

No.    11,    levised    sup. 

No.  1. 
No  12,  revised 

No.  14 

Relating  to  the  abatement  and  refunding  of  taxes. 

No.  10 

Concerning  the  tax  on  opium  manufactured  in  the  United  States  for  smoking 

No.    19,    Evised    sup. 

No.  1. 
No.  20 

purposes. 
Relative  to  the  exportation  of  playing  cards  by  parcels  post.    Superseded  by 

Treasury  decision  1668. 
Relative  to  the  establishment  of  general  bonded  warehouses  for  the  storage  of 

No.  20,  sut.  No.  1 

No. 22 

No. 23 

No.  25...- 

No.  26     

spirits  made  from  material  other  than  fruit. 
Relative  to  the  bonding  of  distilled  spirits  in  general  bonded  warehouses. 
Relative  to  filled  cheese. 

Relative  to  the  bottling  of  distilled  spirits  in  bond,  under  act  of  March  3,  1897. 
Relative  to  the  tax  on  mixed  flour. 
Concerning  documentary  and  proprietary  stamps.    (Obsolete.) 

No.  27 

Redemption  of  stamps. 

No.  27,  sip.  No.  1  ..'.... 
No.  28 

Same. 

Withdrawal  of  wine  spirits  or  grape  brandy  from  distilleries  and  special  bonded 

No.  29 

warehouses  free  of  tax  for  the  fortification  of  pure  sweet  wine.    (Regulations 
as  to  fortification  of  wine  for  export.     Treasury  Decision  1663.) 
Exportation  free  of  tax  or  with  benefit  of  drawback,  of  articles  subject  to  internal- 

No.  30 

revenue  tax. 
Relative  to  denatured  alcohol,  central  denaturing  bonded  warehouses  and  in- 

No. 30,  ap.No.  1 

No.  31 

dustrial  distilleries. 
Relative  to  manufacture,  sale,  and  use  of  denatured  alcohol. 
Relative  to  excise  tax  on  corporations,  etc. 

39 


TABLE  OF  SECTIONS. 


In  this  table  the  numbers  of  sections  of  the  Revised  Statutes  included  in  this  compilation  are  arranged 
in  numerical  order  for  convenient  reference  to  pages. 

Following  this  are  the  numbers  of  sections  of  other  acts,  arranged  in  chronological  order,  and  the  page 
for  each  section. 


Sections.  Page. 

12 31 

13 31 

173 49 

174 49 

184 423 

189 400 

190 437 

19G 55 

236 422 

239 55 

244     436 

261 55 

319 45 

320 49 

321 45 

322                           48 

323 48 

349 48 

364 400 

563  (see  "The  Judicial  Code") 383 

629  (see  "  The  Judicial  Code  " ) 3S3 

643  (amended)  (see  "  The  Judicial  Code"). . .  385 

699 395 

708 397 

711  (see  "  The  Judicial  Code") 3S4 

721 392 

731  (see  "  The  Judicial  Code  ") 385 

732  (see  "The  Judicial  Code") 3S5 

733  (see  "The  Judicial  Code") 385 

771 401 

774 401 

797  (amended) 403 

838 401 

850 436 

858  (amended) 3S9 

882 391 

886 413 

887 413 

914 392 

916 393 

919 385 

934 399 

951 424 

957 414 

963 394 

966 394 

969 392 

970 398 

974 392 

986 393 

989 398 

993  (District  of  Columbia) 434 

1001 397 

1 008 396 

1014 389 

1024 388 

1047 397 

1753 431 

1754 431 

1760 433 

1763 434 

1764 435 

1765 435 

1766 424 

[17801  §  101  Criminal  Code. 412 

[1782]  §  113  Criminal  Code 436 


Sections.  Page. 

1784 43S 

[1788]  §  103  Criminal  Code 412 

[1789]  §  103  Criminal  Code 412 

1790. 437 

2093 438 

2982  (amended) 307 

3140  (amended) 58 

3141 58 

3142 59 

3143  (amended) 59 

3144  (amended) 62 

3146 63 

3147 63 

[314S]  (amended) 03 

3149  (amended) 66 

3150 67 

3152  (amended ) 67 

3153  (amended) 69 

3154 71 

3155 72 

3156 72 

3157 73 

3158  (amended) 74 

3161 75 

31H2 75 

3163  (amended) 75 

3164 77 

3165  (amended) 78 

3166 - 79 

3167  (amended) 79 

3168 80 

3169 81 

3170 83 

3171  (amended) S3 

3172  (amended) 86 

3173  (amended) 86 

3174 88 

3175 88 

3176  (amended) 89 

3177 90 

3179 91 

3180 91 

3181 92 

3182 92 

3183  (amended) 94 

31S4 95 

3185  96 

3186  '(amended)". 97 

3187 97 

3188 98 

3189 98 

3190 99 

3191 99 

3192 92 

3193  (amended) 100 

3194 100 

3195 100 

3196 101 

3197  (amended) 101 

3198 103 

3199 104 

3200 104 

3201 104 

3202 104 

3203  (amended) 104 

3204 105 

41 


42 


TABLE    OF    SECTIONS. 


Sections.  Page. 

3205 105 

320G 105 

3207 105 

3208  (amended) 106 

3209 107 

3210 107 

3211 108 

3212 109 

321 3 109 

3214 Ill 

3215 Ill 

3210 Ill 

3217 112 

3218 113 

3219 113 

3220 114 

3221  (amended) • 1 17 

3222 119 

3223  (amended) 119 

3224 120 

3225 120 

3226 121 

:  (227 122 

3228 122 

3229 1 23 

3230 124 

3231 124 

3232 125 

3233 126 

3234 126 

3235 126 

3236 127 

3237  ( amended) 127 

3238 128 

3239 128 

32 10  (amended) 129 

3241 130 

3242  (amended) 131 

3243 132 

3244  (amended)  133,260,271,278 

3246  (amended) 115 

3247 149 

3248 119 

3249 119 

32.30 150 

3251  (amendi  sd) 150 

3252 154 

; 155 

3254 155 

3255  (amended) 155 

y, 156 

3257 156 

3258 - 157 

3259 158 

0  amendi  I  L59 

32'  .1 102 

3262  (amended) 162 

3263 163 

326 1  (amended) 164 

3265 L6S 

3266 L66 

3267 166 

3268 167 

3269 167 

i 168 

3271 !,;s 

3272            169 

; 170 

3274 170 

3275 170 

oended) 170 

:;277 171 

1 171 

9 172 

172 

d) 173 

3282  (amended) 175 

■  ; 177 

1 177 

1) 177 

ended) L78 

1  (amended) L78 

-: 180 

1 180 

i 1M 

II 181 

12                  L81 

:  (amended) 183 


Sections.  Page. 

3294  (amended) 185 

3295  (amended) 196 

3296 197 

3297  (amended) 197 

3298 198 

3299 198 

3300 199 

3301  (amended) 199 

3302 200 

3303 200 

3304 201 

3305 201 

3306 202 

3307 202 

3308 202 

3309  (amended) 202 

3310  (amended) 205 

3311 206 

3312 207 

3313 207 

3314  (amended) 208 

3315  (amended) :  209 

3316 209 

3317  (amended ) 210 

3318  (amended) 211 

3319 213 

3320  (amended) 213 

3322 214 

3323  (amended) 214 

3324 215 

3325 216 

3326 216 

3327 216 

3328 217 

3329  (amended) 217 

3330  (amended) 220 

3331. 224 

3332  (amended) 224 

3333 225 

3334  (amended) 226 

3335. 243 

3336  (amended) 243 

3337 214 

3338 245 

3339  (amended) 246 

3340  (amended) 248 

3341  (amende!) 249 

3342  (amended) 250 

3343 251 

3344 251 

3345 251 

3346  (amended) 252 

3347 252 

3348 252 

3349 253 

3350 253 

3351 253 

3352 254 

3353 254 

3:54  (amended) 254 

3355  (amem  led) 257 

i 259 

3357  ( ameni  led) 259 

259 

3359 261 

3360  (amended) 261 

3362               ed) 263 

264 

3364  (amended) 2'. i 

3366 264 

3365  (amended) 265 

1369 267 

268 

3371  (amended) 268 



3373 

■ 269 

3375 270 

270 

inded) 270 

I) 2,2 

3382 272 

I) 272 

3384  i    mended  I  273 

ende  I) 27: 

ended) 276 

2711 

amended) 2so 


TABLE    OF    SECTIONS. 


43 


Section.  Page. 

33*9 280 

3390 280 

3391  _  _                                                    281 

3392  '(amended)'. 281 

3393  (amended) 282 

3394  (amended) 282 

3395 285 

3396 285 

3397  (amended) 2S5 

3398 286 

3399 287 

3400 387 

3402 287 

3403 2S8 

3404 289 

3406 2S9 

3407 348 

3408 348 

3409 349 

3411 349 

3412 349 

3413 350 

3414 351 

3415 352 

3416 352 

3417 352 

3422 . .  329 

3426  (amended ) 331 

3429  (amended) 332 

3433 334 

3437 337 

3443 353 

3444 354 

3445 354 

3446 355 

3447 355 

3448 356 

3449 356 

3450 357 

3451 358 

3452 359 

3453 359 

3454 360 

3455 360 

3456 361 

3457 362 

3458 362 

3459 362 

3460 363 

3461 364 

3462 365 

3463 365 

3464 367 

3465 368 


Section. 

3466 

3467 

3469 

3477 

3617 


3620  (amended). 

3621  (amended). 
3022  (amended). 
3623 


3624 

3625  (amended). 
3633  (amended). 

3638 

3639 

3643 

3648 


3671 

3678 

3679  (amended). 

36S9 

3690 

3732 

5266 


5392]  section  125,  Criminal  Code 

5398]  section  140,  Criminal  Code 

5401]  section  143,  Criminal  Code 

5403  section  128,  Criminal  Code 

5408]  section  129,  Criminal  Code 

5413  section  147,  Criminal  Code 

5414  section  148,  Criminal  Code 

541S]  section  28,  Criminal  Code 

543S]  section  35,  Criminal  Code 

5440  section  37,  Criminal  Code 

5  !46,  5447]  sections  65  and 71,  Criminal  Code.  415 

5-!4S]  sections  32  and  66,  Criminal  Code 

5  i.Jl]  section  39,  Criminal  Code 

5454]  section  40,  Criminal  Code 

5456]  section  46,  Criminal  Code 

5479]  section  29,  Criminal  Code 

54X3]  section  S6,  Criminal  Code 

5484]  section  1 45,  Criminal  Code 

54S8]  section  87,  Criminal  Code 

5489]  section  88,  Criminal  Code 

5490]  section  89,  Criminal  Code 

5491]  section  90,  Criminal  Code 

5492]  section  91,  Criminal  Code 

5494,5495,5496,5497]  sections  93,94,95,96,97, 

Criminal  Code 410, 411 

5498]  section  109,  Criminal  Code 437 

5501]  section  117,  Criminal  Code 417 

5502]  section  117,  Criminal  Code 417 

[5504]  section  99,  Criminal  Code 412 

[5505]  section  100,  Criminal  Code 412 

[551S]  section  21,  Criminal  Code 417 


Page. 

.       425 

.  425 
399 
428 
4H4 
404 
4(15 

.  406 
407 
407 

.  408 
408 
408 
408 
409 
42S 
47 
426 

.  426 
425 
427 

.  427 
433 
414 
415 
415 
418 
418 
420 
420 
420 
420 
418 
,416 
416 
416 
419 
419 
420 
409 
417 
409 
409 
410 
410 
410 


OTHER  ACTS. 


Page. 

January  8, 1S74,  section  1  (18  Stat.,  ?) 169 

January  29, 1S74,  section  1  (18  Stat.,  6) 48 

June  9,  1874, sections  1  and  2  (18  Stat.,  64). .  220,221 

June  20,  1874(18  Stat.,  110) 427 

June  22, 1874,  section  5  (18  Stat.,  187) 390 

February  8, 1S75  (18  Stat.,  309) 63, 307 

Section  12 63 

Section  13 65 

Section  16 131. 1 73 

Section  17 209 

Section  18 136 

Section  19 

Section  20 !  151 1 

Section  21 351 

Section  23 83 

Section  24 275 

Section  25 277 

February  18, 1875  (IS  Stat.,  316) 330 

March  3~,  1875  (18  Stat. ,481) 424 

[Sections  1  and   2]  sections  47  and    48, 

Criminal  Code 419 

March  3, 1875,  section  1  (IS  Stat.,  470, 484) . .  250, 386 

March  3, 1875,  section  12  (18  Stat.,  402) 203 

March  3,  1875  (18  Stat.,  339) 150 

May  8, 1876  (19  Stat.,  213) 126 

May  13, 1S76  (19  Stat.,  53) : . . .      245 

August  15,  1876  (19  Stat.,  169) 69,75,76,214,431 

Section  3 431 

Section  6 438 

February  27, 1877  (19  Stat.,  240) 58, 205, 404 


Page. 

March  3, 1S77  (19  Stat. ,335) 429 

March  3, 1877  (19  Stat.,  393): 

Sections  1  to  11.    (Special  bonded  ware- 
houses.)        192 

March  16, 1878  (20  Stal . ,  30) 389 

May  3, 1878  (20  Stat. ,48) ■ 198 

June  19, 1878  (20  Stat.,  178) 73 

March  1,1879  (20  Stat.,  327-341) 59,208 

Section  1 82 

Section  2 66, 67, 75, 78, 403 

Section  3 94. 97, 101, 104, 106, 119 

Section  4 139 

Section  5 145,156, 

164.  170,  17...  17s.  185, 199,209,210,224,220,252 

Section  6 117, 178, 204 

Section  9 175 

Section  10 134, 221, 248 

Section  11 227 

Section  12 227 

Section  13 228 

Section  14 257, 260, 261, 268 

Section  15 273 

Section  16 276,  282,  285 

Section  17 331 

Section  18 355 

Section  20 336 

Section  21 248 

Section  22 349 

June  14,  1X79  (21  Stat.,  20) 176 

June  21,  1S79  (21  Stat.,  23) 70 


44 


TABLE    OF    SECTIONS. 


Page. 

December  20,  1879  (21  Stat.,  59) 223 

May  28,  1880  (21  Stat.,  145): 

Section  1 133, 159 

Section  2 162 

Section  3 177 

Section  4 181 

Section  5 185 

Section  6 i 178 

Section  7 205 

Section  8 204 

Section  9 155 

Section  10 217 

Section  11 220 

Section  12 227 

Section  13 228 

Section  14 336 

Section  15 336 

Section  16 208 

Section  18 133 

June  9,  1880(21  Stat.,  167) 273 

Augusts,  18S2  (22  Stat.,  255) 432 

August  8,  1882  (22  Stat.,  372) 273 

January  13,  1SS3  (22  Stat.,  402) 273 

January  16,  1883  (22  Stat.,  403) 438 

March  3,  1883  (22  Stat.,  485-48S) 260 

Section  2  (22  Stat.,  563) 430 

Section  5  (22  Stat.,  488) 264 

May  1,  1884  (23  Stat.,  17) 434 

JulyS,  1884  (23  Stat.,  122) 397 

July  7,  1SS4  (23  Stat.,  172-25S) 67, 74, 429 

January  6, 18S5  (23  Stat.,  516) 434 

March  3,  1SS5  (23  Stat.,  404) 68 

April  29,  1880  (24  Stat.,  15) 243 

August  2,  18X0  ( 24  Stat.  ,209) 293, 300 

Oleomargarine  act  (amended.) 

August  4,  1886,  section  1  (24  Stat.,  218) 67 

February  23,  1887  (24  Stat. ,  644) 434 

August  1,  1888(25  Stat.,  357) 393 

August  8,  1888  (25  Stat.,  387) 372 

August  13,  18S8  (25  Stat.,  433) 384,386 

October  18, 1S88  (25  Stat.,  560) 192 

February  16,  1889  (25  Stat.,  672) 438 

June  18,  1890  (26  Stat. ,  162-169) 255, 353 

August  30,  1890  (26  Stat.,  371) 405 

October  1,  1890  (26  Stat.,  567-621) 

Section  10 334 

Section  26 260 

Sect  ion  27 257 

Section  28 .'72 

Section  29 272 

Section  31 264 

Sect  ion  32 281 

Section  33 

Section  34 280 

Section  35 279 

Sections  36  to  40  (opium) 290 

Section  41 304 

!  ion  42 228 

'  ions  43  to  49  (fortification  of  wine)! .  22!  - 

Section  53 127 

March  3,  1891  (26  Stat.,  826) 395 

March  3, 1891                 1050) 154 

July  I'.,  1892  (27  Stat.,  20(1) 196,201,210,213,214 

751) li  i:j 

February  8,  !•                it.,  36) 386 

July  31,1894(28  Stat,  209)  400.40.x 

Aug!  .Tided)..  368,369 



94  (28  Stat.,  509) 70 

Section  34 79.  86 

Section  37 95 

Sections  38  to  47  (playing  cards) 343 

Section  ix 151 

' 181,  L8 

Section  50 185 

Sections  .",1  to  59  (general  bonded  « 

houses  1 189,  I'M 

Section  60 

Section  62 

Section  I                         71 

Section  64 70 

73 

Section  66 


Page. 
August  28,  1S94  (28  Stat.,  509)— Continued. 

Section  67 159 

Section  68 229 

Section  69 256, 257 

March  2,  1895  (28  Stat,  910) 431 

March  2, 1S95,  section  5  (28  Stat.,  807) 62, 371 

May  28,  1896  (29  Stat.,  178) 402, 404,405, 406 

June  3,  1S96  (29  Stat.,  195) 155 

June  6,  1896  (29  Stat,  253)  (Filled  cheese  act). 

Sections  1  to  19,  chapter  10 144, 305, 30S 

March  3, 1897  (opium)  (29  Stat. ,  228) 291 

March  3,  1S97  (29  Stat. ,  020) 234 

Sections  1  to  8  (bottling  in  bond) 234, 238 

July  24,  1S97  (30  Stat.,  206) 249 

Section  9 249 

March  15, 1898  (30  Stat,  317),  sec.  7 51, 55 

June  13, 1898(30  Stat.,448)(War-revenueact).      145 

Sections  13,  14, 15 338 

Section  30  (legacies) 315 

Section  31 373 

Sections  35  to  40  (mixed  flour) 310 

July  7,  1898  (30  Stat,  705) 73 

February  21,  1899  (30  Stat,  843) 178 

February  24,  1899  (30  Stat,  890) 50, 52 

March  3,  1899  (30  Stat,  1349) 187 

Section  1 187 

Section  2 187 

April  12,  1900(31  Stat,  77) 373 

April  17,  1900(31  Stat.,  107) 60.72 

April  30,  1900  (31  Stat.,  141) 373 

May  12,  1900(31  Stat,  177; 331 

February  4,  1901  (31  Stat.,  759) 155 

March  2,  1901  (31  Stat.,  93.x,  949) 247,310 

March  3,  1901  (31  Stat,  982) 47, 53 

March  8,  1902  (32  Stat.,  54) 375 

April  12,  1902  (32  Stat.,  96) 246, 310, 315 

April  28,  1902  (32  Stat,  120) 53,68 

May  9, 1902,  oleo margarine  (32  Stat.,  193) . . .  293, 300 

June  27,  1902  (32  Stat,  406) 340 

June  28, 1902  (32  Stat.,  492) 71 

June  30,  1902  (32  Stat.,  506) 331 

July  1, 1902  (32  Stat.,  714) 264,283 

January  13,  1903  (32  Stat. ,  770) 188 

April  28,  1904  (33  Stat,  574) 377 

February  3,  1905  (33  Stat,  631) 69 

February  27,  1906  (34  Stat,  49) 426 

June  7, 1906,  denatured  alcohol  (34  Stat.,  217) .      239 
June  7, 1906,  fortification  of  wine  (34  Stat.. 

215) 229  232 

June  21, 1966 "(34  Stat,*387J"."."."."."V.'".V.'.".'. ..     '  129 

June  22,  1906  (34  Stat.,  389) 

June  29,  1906  (34  Stat,  020) 371 

June  30,  1900  (34  Stat.  ,764) 427 

June  30,  1906  (34  Stat.,  810) 400 

March  2,  1907(34  Stat.,  1250) 240 

March  4,  1907  (34  Stat.,  1373) 340 

May  22,  1908  (35  Stat,  184,244) 53 

May  27,  190-  tat.,  317,325) 108,404 

February  1, 1909  (35  Stat.,  590) 341 

February  1,  1909  (35  Stat.,  594) 152 

March  4,  1909  (35  Stat,  845)  (Criminal  Code). 

Seel  ion  238 421 

Section  239 421 

S^  ction  240 422 

August  5,  1909,  tobacco  tax  and  corporation 
excise  tax  (36  Stat.,  106  to  m  1  (36  Stat., 
73.  S3, 88, 90, 108-117)  ....  261, 263,  265, 276. 281, 282, 
320,333,336,366,367,377 

August  5,  1909  (30  Stat,  118,120) 341 

March  23,  L910  (36  Stat.,  241) 

May  13,  1910  (36  Stat.,  369) 71 

June  17.  1910(36  Slat.,  468) 54,327 

June  22,  1910(36  Stat.,  590) 177 

June  23,  1910  (36  Stat,  592) 74 

June25,  I910(3fi  Stat.,  774) 

,ruary24,  L9U  (36Stat.,928) 70 

March  2,  1   Stat.,  ioi4> 

1  '1  2,  191  I  (36  Stat.,  1014) 179 

b  2,  1911  (31  10S 

March 3f  1911  (36  Stat.,  1087)  "The  Judicial 

Cod!" 383 

March.4,  1911  (36  Stat.,  1193) 49 


INTERNAL-REVENUE  LAWS. 


OFFICE    OF    INTERNAL    REVENUE,    ORGANIZATION, 
APPROPRIATIONS,  ETC. 

[The  sections  enumerated  in  this  compilation  are  from  the  Revised  Statutes  of  the  United  States,  unless 

otherwise  indicated.] 

Sec.  j   Sec. 

319.  Commissioner  of  Internal  Revenue.  !  Appropriation    acts.     Officers    and    em- 

321.  Duties  of  commissioner.  ployees.     Reports. 


239.  Accounts  of  receipts  of  internal  reve- 
nue, how  kept. 

261.  Report  to  Congress  by  Secretary  of 
moneys  received. 

196.  Annual  report  of  head  of  depart- 
ment. 


3671.  Estimates  of  expenses  of  collecting 
internal  revenue. 
Estimates    and   statement    of    re- 
ceipts and  expenditures. 

322.  Deputy  commissioner. 

323.  Duties  of  deputy  commissioner. 
349.  Solicitor  of  Internal  Revenue. 
320.  Chief  clerk. 

173-174.  Duties  of  chief  clerk. 

Sec.  319.  There  shall  be  in  the  Department  of  therf^™£fg££ 
Treasury  a  Commissioner  of  Internal  Revenue,  who  shall  nue. 
be  appointed  by  the  President,  by  and  with  the  advice  and 
consent  of  the  Senate,  and  shall  be  entitled  to  a  salary  of 
six  thousand  dollars  a  year. 

12  Op.  Atty.  Gen.,  443;  8  Int.  Rev.  Rec,  54. 

Sec.  321 .  The  Commissioner  of  Internal  Revenue,  under  m^oner0fof  Tn- 
the  direction  of  the  Secretary  of  the  Treasury,  shall  have temai Revenue, 
general  superintendence  of  the  assessment  and  collection 
of  all  duties  and  taxes  now  or  hereafter  imposed  by  any 
law  providing  internal  revenue;  and  shall  prepare  and 
distribute  all  the  instructions,  regulations,  directions, 
forms,  blanks,  stamps,  and  other  matters  pertaining  to  the 
assessment  and  collection  of  internal  revenue;  and  shall 
provide  hydrometers,  and  proper  and  sufficient  adhesive 
stamps  and  stamps  or  dies  for  expressing  and  denoting  the 
several  stamp  duties,  or,  in  the  case  of  percentage  duties, 
the  amount  thereof;  and  alter  and  renew  or  replace  such 
stamps  from  time  to  time,  as  occasion  may  require.  He 
may  also  contract  for  or  procure  the  printing  of  requisite 
forms,  decisions,  and  regulations,  but  the  printing  of  such 
forms,  decisions,-  and  regulations  shall  be  done  at  the 
Public  Printing  Office,  unless  the  Public  Printer  shall  be 
unable  to  perform  the  work:  Provided,  That  the  Commis- 
sioner of  Internal  Revenue  may,  under  such  regulations 
as  may  be  established  by  the  Secretary  of  the  Treasury, 
after  due  public  notice,  receive  bids  and  make  contracts 
for  supplying  stationery,  blank-books,  and  blanks  to  the 

45 


46  ORGANIZATION    OF    OFFICE. 

collectors  in  the  several  collection-districts ;  and  the  said 
Commissioner  shall  estimate  in  detail  by  collection-dis- 
tricts the  expense  of  assessing  and  the  expense  of  the  col- 
lection of  internal  revenue. 

See,  as  to  stamps,  sections  3238,  3312,  3328,  3341,  3369,  3395, 
34-i-l,  3446,  and  other  sections. 

Commissioner  to  make  assessments  (sees.  3176,  3182,  3253, 
3309,  3314,  3371,  3437;  sec.  3413,  amended  bvsecs.  19,  20,  and  21, 
act  oi  Feb.  8, 1875;  actof  May  13, 1876;  sec.  8,  act  of  Mar.  3, 1877; 
sec.  6,  act  of  Mar.  1,  1879,  fruit  brandy:  sec.  8,  act  of  May  28, 
1880,  amending  sec.  6,  act  of  Mar.  1,  1879;  sec.  9,  act  of  Aug.  2, 
1886,  oleomargarine;  sec.  28,  act  of  Oct.  1,  1890,  opium;  sec.  27, 
act  of  Aug.  28,  1894,  playing  cards;  sec.  10,  act  of  June  6,  1896, 
filled  cheese;  sec.  41,  act  of  June  13,  1898,  mixed  flour;  sec.  38, 
act  of  Aug.  5,  1909,  corporations). 

It  is  the  duty  of  the  commissioner  to  see  that  the  laws  relating 
to  collection  of  internal  revenue  taxes  are  faithfully  executed. 
He  has  the  right  to  order  seizures.  (Agnew  v.  Haymes,  141  Fed. 
Rep.,  631;  T.  D.  955.) 

umissioner  to  make  regulations  to  carry  out  the  law  or  made 
necessary  by  reason  of  changes  in  the  law  (sec.  3447,  p.  355).  See 
also  under  the  different  subjects. 

Distinction  between  "instructions"  and  "regulations." 
(Landram  v.  United  States,  16  Ct.  Cls.,  74;  27  Int.  Rev.  Rec, 
80.) 

A  regulation  made  in  pursuance  of  an  act  of  Congress  has  the 
force  of  law.  (United  States  v.  Eliason,  16  Pet.,  291;  ex  parte 
Reed,  100  U.  S.,  13;  United  States  v.  Barrows  et  al.,  10  Int.  Rev. 
Rec,  86;  Harvey  v.  United  States,  3  Ct.  Cls.,  38;  Stotesbury 
v.  United  States,  23  Ct,  Cls.,  292;   22  Op.  Atty.  Gen.,  570.) 

Scope  and  effect  of  regulations  of  the  department.  (In  re 
Kollock,  165  U.  S.,526;  43  Int.  Rev.  Rec,  170;  United  Shit.-  v. 
Symonds,  120  U.  S.,  46;  Wilkins  v.  United  States,  U.  S.  Circuit 
Court  of  Appeals,  1899,  96  Fed.  Rep.,  837;  T.  D.  21623;  Sprinkle 
v.  United  States,  141  Fed.  Rep.,  811;  T.  D.  958;  Stegall  v.  Thur- 
man,  175  Fed.  Rep..  813;  T.  D.  1616.) 

Secretary  of  Treasury  can  not  make  regulations  which  will 
defeat  the  law.     (Campbell  v.  United  States,  107  U.  S.,  410.) 

Regulations  made  by  the  commissioner  pursuant  to  the  statu- 
tory authority,  with  the  approval  of  the  Secretary  of  the  Treas- 
ury, in  respect  to  the  assessment  and  collection  of  internal  reve- 
nue, have  the  force  of  statutes;  and  the  acts  of  the  commissioner 
are  presumed  to  be  the  acts  of  the  Secretary.  (In  re  Huttman, 
70  Fed.  Rep.,  699.) 

In  Unitod  States  v.  Eaton  (144  U.  S.,  677;  it  was  held  that 
"a  sufficient  statutory  authority  should  exist  for  declaring  any 
acl  of  omission  a  criminal  offense."  Regulations  prescribed  by 
law  may  have  in  a  proper  sense  the  force  of  law,  but  when  the 
statute  does  not  distinctly  make  the  neglect  to  do  the  thing 
required  a  criminal  offense  a  regulation  can  not  have  that  off. 

Regulations  can  not  change  the  positive  provisions  of  law. 
(United  States  v.  Two  Hundred  Barrels  of  Whiskv,  95  TJ.  S.,  5 
24  Int.  Rev.  Rec,  3;  .Morrill  v.  Jones,  106  U.  S.,  467;  United 
v.  Three  Barrels,  77  Fed.  Rep.,  963.) 
leral  courts  will  take  judicial  notice  of  regulations  pre- 
scribed in  pursuance  of  law.  M  'aha  /•.  United  States,  152  U.  S., 
I'M:  Wilkins  v.  United  States,  96  Fed.  lie]..,  837;  T.  D.  21623, 
1889;  Dominiei  y.  United  State-,  72  F<  d.  Rep.,  41 

While  a  regulal  Lon  may  have  the  force  oi  law,  printed  headings 
on  a  form,  additional  to  the  expressed  terms  of  the  regulal  Lon  do 
doI  have  the  force  "t'  law.  (United  state-  ,.  Lamson,  162  Fed. 
Rep.    ' 

lation  promulgated  by  the  Commissioner  of  Internal 
Revenue,  under  the  direction  of  the  Secretary  of  the  Treasury, 
prohibiting  collectors  from  producing  the  records  of  their  ofl 
or  furnishing  copies  thereof  for  the  use  of  third  persons  or  for  use 


Estimates. 


ORGANIZATION    OF   OFFICE.  47 

as  evidence  in  behalf  of  litigants  in  any  court,  is  a  valid  and 
binding  regulation.  (In  re  Comingore,  Collector,  1889,  96  Fed. 
Rep.,  552;'  T.  D.  21584;  Boske  v.  Coininsrore,  177  U.  S.,  459; 
T.  D.  104.) 

By  section  161,  Revised  Statutes,  the  head  of  each  department 
is  authorized  to  prescribe  regulations  as  to  the  custody,  use,  and 
preservation  of  the  records  and  papers  appertaining  to  it  and 
may  decline  to  furnish  copies.  (25  Op.  Atty.  Gen.,  326;  see  sec. 
8S2  and  notes,  p.  391,  Appendix.) 

The  office  of  the  Commissioner  General  of  Immigration  was     Transfer  of  du- 
transferred  to  the  new  Department  of  Commerce  and  Labor  by  ties- 
the  act  of  February  14,  1903,  and  section  7  of  the  act  provided  as 
follows  in  regard  to  Chinese  exclusion: 

"And  the  authority,  power,  and  jurisdiction  in  relation  thereto 
now  vested  by  law  or  treaty  in  the  collectors  of  customs  and  the 
collectors  of  internal  revenue  are  hereby  conferred  upon  and 
vested  in  such  officers  under  the  control  of  the  Commissioner 
General  of  Immigration,  as  the  Secretary  of  Commerce  and  Labor 
may  designate  therefor."     (T.  D.  658.) 

Sec.  3671 .  The  Commissioner  of  Internal  Revenue  shall    Estimates    of 
estimate  in  detail,  by  collection-districts,  the  expense  of  fe^.tfn|es  iSte/nii 
assessing  and  the  expense  of  the  collection  of  internal  revenue. 
revenue,  and  submit  the  same  to  Congress  at  the  com- 
mencement of  each  regular  session. 

Statements  to  Congress  as  to  expenditure  of  fraud  fund  and 
miscellaneous  expenditures,  see  section  [3463a],  p.  366. 

Sec.  5.  [Extract  from  the  legislative,  executive,  and  judi- 
cial appropriation  act  for  the  fiscal  year  ending  June  30, 
1902,  approved  Mar.  8,"  1901  (31  Stat.,  982,  1009).]  That 
hereafter  it  shall  be  the  duty  of  the  heads  of  the  several 
Executive  Departments,  and  of  other  officers  authorized 
or  required  to  make  estimates,  to  furnish  to  the  Secretary 
of  the  Treasury,  on  or  before  the  fifteenth  day  of  Octo- 
ber of  each  year,  their  annual  estimates  for  the  public 
service,  to  be  included  in  the  Book  of  Estimates  pre- 
pared by  law  under  his  direction,     *     *     * 

[Extract  from  the  legislative,  executive,  and  judicial  appropriation  act  for 
the  fiscal  year  ending  June  30,  1907,  approved  June  22,  1906  (34  Stat.,  448).] 

Sec  4. 

Hereafter  the  heads  of  the  several  Executive  Departments  and 
all  other  officers  authorized  or  required  to  make  estimates  for  the 
public  service  shall  include  in  their  annual  estimates  furnished 
the  Secretary  of  the  Treasury  for  inclusion  in  the  Book  of  Esti- 
mates all  estimates  of  appropriations  required  for  the  service  of 
the  fiscal  year  for  which  they  are  prepared  and  submitted,  and 
special  or  additional  estimates  for  that  fiscal  year  shall  only  be 
submitted  to  carry  out  laws  subsequently  enacted,  or  when 
deemed  imperatively  necessary  for  the  public  service  by  the 
Department  in  which  they  shall  originate,  in  which  case  such 
special  or  additional  estimate  shall  beaccompanied  by  a  full  state- 
ment of  its  imperative  necessity,  and  reasons  for  its  omission  in 
the  annual  estimates. 

[Extract  from  the  legislative,  executive  and  judicial  appropriation  act  of  Feb. 

26,  1907  (34  Stat.,  949).] 

The  Secretary  of  the  Treasury  shall  each  year  prepare  and  sub- 
mit in  his  annual  report  to  Congress  estimates  of  the  public 
revenue  and  the  public  expenditures  for  the  fiscal  year  current, 
and  also  for  the  fiscal  year  next  ensuing  at  the  time  said  report 
is  submitted,  together  with  a  statement  of  the  receipts  and 
expenditures  of  the  Government  for  the  preceding  completed 
fiscal  year. 


48  ORGANIZATION    OF    OFFICE. 

[Extract  from  the  sundry  civil  appropriation  act  for  1910.     Act  of  March  4, 

1909.     (35  Stat.,  1027J.] 

Sec.  7.  Immediately  upon  the  receipt  of  the  regular  annual 
estimates  of  appropriations  needed  for  the  various  branches  of 
the  Government  it  shall  be  the  duty  of  the  Secretary  of  the 
Treasury  to  estimate  as  nearly  as  may  be  the  revenues  of  the 
Government  for  the  ensuing  fiscal  year,  and  if  the  estimate  for 
appropriations,  including  the  estimated  amount  necessary  to  meet 
all  continuing  and  permanent  appropriations,  shall  exceed  the 
estimated  revenues  the  Secretary  of  the  Treasury  shall  trans- 
mit the  estimates  to  Congress  as  heretofore  required  by  law  and  at 
once  transmit  a  detailed  statement  of  all  of  said  estimates  to  the 
President,  to  the  end  that  he  may,  in  giving  Congress  information 
of  the  state  of  the  Union  and  in  recommending  to  their  considera- 
tion such  measures  as  he  may  judge  necessary,  advise  the  Congress 
how  in  his  judgment  the  estimated  appropriations  could  with 
least  injury  to  the  public  service  be  reduced  so  as  to  bring  the 
appropriations  within  the  estimated  revenues,  or,  if  such  reduc- 
tion be  not  in  his  judgment  practicable  without  undue  injury 
to  the  public  service,  that  he  may  recommend  to  Congress  such 
loans  or  new  taxes  as  may  be  necessary  to  cover  the  deficiency. 

Juffi  ofC°S-  Sec-  322-  There  shall  be  in  the  office  of  the  Commis- 
temai  Revenue,  sioner  of  Internal  Revenue  a  Deputy  Commissioner  of 
Internal  Revenue,  who  shall  be  appointed  by  the  Presi- 
dent, by  and  with  the  advice  and  consent  of  the  Senate, 
and  shall  be  entitled  to  a  salary  of  three  thousand  five 
hundred  dollars  a  year. 

By  act  approved  January  29,  1874  (18  Stat.,  6),  it  is  provided 
that  this  "Office  of  Deputy  Commissioner  of  Internal  Revenue 
*  *  *  be,  and  the  same  is  hereby,  abolished;  and  that  the 
Secretary  of  the  Treasury  may,  upon  the  recommendation  of  the 
Commissioner  of  Internal  Revenue,  designate  one  of  the  two 
remaining  deputy  commissioners  as  first  deputy  commissioner, 
who  shall  perform  the  duties  and  be  paid  only  the  salary  pre- 
scribed for  the  office  of  deputy  commissioner  hereby  abolished." 

The  legislative,  executive,  and  judicial  appropriation  act  of 
April  17,  1900  (31  Stat.,  103),  made  appropriation  for  a  deputy 
commissioner  at  $4,000  and  provided  for  an  additional  deputy  at 
$3,600. 

See  section  235,  Revised  Statutes,  and  Supplement  to  Revised 
Shit  ul es,  volume  1,  page  3. 

(13  Op.  Atty.  Gen.,  512;   15  Op.  Atty.  Gen.,  6.) 

Dui  pu-     Sec.  323.  The  Deputv  Commissioner  of  Internal  Reve- 

i  j   I  immissioner  .     ..  ,         .  .-.  .      .      .  .  ^  „    . 

of  internal  Rev-nue  shall  be  charged  with  such  duties  m  the  omce  oi  the 
Commissioner  of  Internal  Revenue  as  may  be  proscribed 
by  1  he  Secretary  of  the  Treasury,  or  by  law,  and  shall  act 
as  Commissioner  of  Internal  Revenue  in  ease  of  the 
absence  of  that  officer. 

Vacancies  occurring  by  death,  resignation,  absence,  or  sickness 
of  chief  of  a  bureau,  how  temporarily  filled  (sees.  178,  179,  180, 
R.  s 

,  rs'  Skc.  :;i'.).  There  shall  be  in  the  Department  of  Justice 

I  Revenue.  0...  ,  ...  '  t      *      *  r. 

*     a  Solicitor  oi  Internal  Revenue,     *     *     *     who 
shall   be  appointed   by  the  President,  by  and  with  the 

advice  and  consent  of  the  Senate.     *     *     * 

The  salary  of  the  Solicitor  of  Internal  Revenue,  as  appropriated 
by  the  lasl  appropriation  act,  is  $5,000. 

Solicitor  of  Internal  Revenue  was  added  to  the  Internal 
Revenue  <  mice  corps  by  the  acl  of  July  L'5,  18(>6  <  1  I  Stat.,  L70), 
but  by  the  ac1  of  June  22,  L870  I L6  Stat.,  162),  organizing  ihe 
Department  of  Justice,  the  Solicitor  was  formally  transferred  to 


ORGANIZATION   OF   OFFICE.  49 

that  department.  He  is  the  law  officer  and  law  adviser  of  the 
Commissioner.  The  only  duties  of  which  mention  is  made  by 
law  are  in  connection  with  compromise  cases  (sec.  3229,  p.  123). 

Sec.  320.  The  Commissioner  of  Internal  Revenue  is    Chief clerk- 
authorized  to  designate  one  of  the  heads  of  division  as 
chief  clerk  of  the  Bureau  without  additional  compensation. 

Sec.  173.  Each  chief  clerk  in  the  several  Departments  Sl™^secle^lti^ 
and  Bureaus,  and  other  offices  connected  with  the  Depart- of  other  clerks. 
ments,  shall  supervise,  under  the  direction  of  his  immedi- 
ate superior,  the  duties  of  the  other  clerks  therein,  and 
see  that  they  are  faithfully  performed. 

Sec.  174.  Each  chief  clerk  shall  take  care,  from  time  to  chief  clerk  to 
time,  that  the  duties  of  the  other  clerks  are  distributed' 
with  equality  and  uniformity,  according  to  the  nature  of 
the  case.  He  shall  revise  such  distribution  from  time  to 
time  for  the  purpose  of  correcting  any  tendency  to  undue 
accumulation  or  reduction  of  duties,  whether  arising  from 
individual  negligence  or  incapacity,  or  from  increase  or 
diminution  of  particular  kinds  of  business.  And  he  shall 
report  monthly  to  his  superior  officer  any  existing  defect 
that  he  may  be  aware  of  in  the  arrangement  or  dispatch 
of  business. 

Section  175  directs  what  action  the  chief  of  a  bureau  or  other 
superior  officer  shall  take  upon  receiving  the  monthly  report 
of  his  chief  clerk,  rendered  pursuant  to  section  174. 

Section  166,  Revised  Statutes,  as  amended  by  act  of  May  28, 
1S96  (29  Stat.,  140),  provides  in  regard  to  distribution  of  clerks 
and  details. 

Appropriation  for  Office  Force. 

[Extracts  from  the  legislative,  executive,  and  judicial  appropriation  act  for  the  fiscal 
year  ending  June  30,  1912,  approved  March  4,  1911  (36  Stat.  1170,  1193.)] 

Office  of  the  Commissioner  of  Internal  Revenue:  office  force  and 
Commissioner  of  Internal  Revenue,  six  thousand  dollars; salar 
deputy  commissioner,  four  thousand  dollars;  deputy  com- 
missioner, three  thousand  six  hundred  dollars;  chemist, 
two  thousand  five  hundred  dollars;  first  assistant  chem- 
ist, one  thousand  eight  hundred  dollars;  second  assistant 
chemist,  one  thousand  six  hundred  dollars;  third  assist- 
ant chemist,  one  thousand  four  hundred  dollars;  three 
heads  of  divisions,  at  two  thousand  five  hundred  dollars 
each;  six  heads  of  divisions,  at  two  thousand  two  hun- 
dred and  fifty  dollars  each;  superintendent  of  stamp 
vault,  two  thousand  dollars;  two  clerks  at  two  thousand 
dollars  each;  private  secretary,  one  thousand  eight  hun- 
dred dollars;  twenty-eight  clerks  of  class  four;  twenty- 
four  clerks  of  class  three;  thirty-seven  clerks  of  class  two; 
thirty-seven  clerks  of  class  one;  thirty-two  clerks,  at  one 
thousand  dollars  each;  forty-two  clerks,  at  nine  hundred 
dollars  each;  three  messengers ;  twenty-one  assistant  mes- 
sengers;  and  sixteen  laborers;  in  all,  three  hundred  and 
thirty-two  thousand  seven  hundred  dollars. 

72170°— 11 4 


50  ORGANIZATION   OF   OFFICE. 

For  the  following  formerly  authorized  and  paid  from 
appropriation  for  "withdrawal  of  denaturalized  alcohol," 
namely:  Chief  chemist,  three  thousand  dollars;  first 
assistant  chemist,  one  thousand  eight  hundred  dollars; 
one  clerk  of  class  four;  one  clerk  of  class  three;  four 
clerks  of  class  two;  three  clerks  of  class  one;  one  mes- 
senger; in  all,  eighteen  thousand  two  hundred  and  forty 
dollars. 

For  stamp  agent,  one  thousand  six  hundred  dollars; 
stamp  agent,  nine  hundred  dollars;  counter,  nine  hundred 
dollars;  in  all,  three  thousand  four  hundred  dollars,  the 
same  to  be  reimbursed  by  the  stamp  manufacturers. 

*f*  *j*  jj^  *j%  *^ 

The  employment  of  an  additional  force  of  revenue  agents, 
inspectors,  deputy  collectors,  clerks,  laborers,  and  other  assist- 
ants was  authorized  by  act  of  June  25,  1910  (deficiency  appro- 
priation act,  36  Stat.,  780),  to  carry  out  the  provisions  of  the 
corporation  tax  act,  and  also  bv  the  deficiencv  appropriation 
act  of  March  4,  1911  (36  Stat.,  page  1197),  p.  328. 

Sec.  3.  The  appropriations  herein  made  for  the  officers, 
clerks,  and  persons  employed  in  the  public  service  shall 
not  be  available  for  the  compensation  of  any  persons 
incapacitated  otherwise  than  temporarily  for  performing 
such  service,  and  the  heads  of  departments  shall  cause 
this  provision  to  be  enforced. 

A  similar  provision  was  in  the  appropriation  act  of  February 
24,  1899  (30  Stat.,  846;  Supp.  R.  S.,  946),  and  has  been  con- 
tinued since. 

The  act  of  August  2,  1886  (24  Stat.,  209),  provided  for  "an 
analytical  chemist  and  a  microscopist,  who  shall  each  be 
appointed  by  the  Secretary  of  the  Treasury,  and  shall  each 
receive  a  salary  of  two  thousand  five  hundred  dollars  per 
annum;"  and  provided  that  '"the  Commissioner  of  Internal 
Revenue  may,  whenever  in  his  judgment  the  necessities  of  the 
service  so  require,  employ  chemists  and  microscopists,  to  be 
paid  such  compensation  as  he  may  deem  proper,  not  exceeding 
in  the  aggregate  any  appropriation  made  for  that  purpose.'' 

There  has  been  no  appropriation  for  a  microscopist  since 
July  1,  1895. 

A  fourth  class  clerk  is  an  inferior  officer  of  the  United  States 
within  the  meaning  of  article  2,  section  2,  of  the  Constitution. 
(27  Op.  Atty.  Gen.,  219.) 

As  to  officer's  right  to  whole  amount  of  the  annual  salary 
fixed  by  the  Revised  Statutes,  although  Congress  has  appro- 
priated a  le.-s  amount  as  compensation  for  the  fiscal  year. 
(Wallace's  case,  2  Lawrence  Doc.  376;  28  Int.  Rev.  Rec",  271; 
Fisher's  case,  15  Ct.  Cls.,  323;  109  U.  S.,  143.) 

Extra  compensation  not  allowed.  Act  June  20,  1874  (18  Stat., 
109),  see  page  427._ 

Transfer  of  duties  to  clerk?;  of  lower  class.  Section  3,  act 
Augusl  15,  1876  (19  Stat.,  143),  see  page  431. 

Em]  to    be    paid    from    specific  appropriations.     Acl 

Augu  '  ">.  L882  (22  Stat.,  255),  see  page  432. 

Tr;ui  i'.t-  and  details.     Appendix,  page  433. 

Temporary  detail  oi  clerks.  Section  166,  Revised  Statutes, 
as  amended  by  Bection  3  of  the  act  of  May  2s,  L896  (29  Stat., 
1  10 

President's  authority  to  prescribe  regulations  concerning 
appointments.     (Sec.  1753,  R.  S.,  p.  431.) 

Preference  in  appointment  to  public  •  .IFice  of  honorably  dis- 
charged soldier?  (See.  1754,  R.  S.,  p.  431;  17  Op.  Atty.  Gen., 
194. 


ORGANIZATION    OF    OFFICE.  51 

Correspondence  with  the  Office  of  Internal  Revenue.  (Int. 
Rev.  Cir.  No.  550;  T.  D.  1900,  No.  29:  Reg.  No.  2  revised,  p.  106.) 

Dept.  Cir.  No.  30,  Apr.  28,  1908.  _ 

Formulas  for  official  communications. 

Official  correspondence.     (T.  D.  1572,  Dec.  9,  1909.) 

An  act  to  regulate  and  improve  the  civil  service  of  the  United 
States  (civil-service  act).     Act  January  16,  1883  (22  Stat.,  403). 

Civil-service  rules  and  executive  orders,  with  notes  on  the 
rules  and  legal  decisions,  edition  of  1910. 

Subordinate  officers  of  the  several  departments  should  com- 
municate with  Congress  on  matters  involving  legislation  through 
the  heads  of  their  departments.     (17   Op.   Atty.   Gen.,   254.) 

Pres.  Taft's  order  prescribing  method  of  communication  with 
Congress.     (Dept.  Cir.  No.  64,  1909,  T.  D.  30151.) 

Pres.  Roosevelt's  order.     (Dept,  Cir.  No.  11,  Jan.  29,  1906.) 

Emplovee  wrongfully  suspended.  (Civil-service  law;  U.  S.  v. 
Wickersham,  201  U.  S.,  390.) 

Reinstatements.  (19  Op.  Atty.  Gen.,  416,  434,  533;  25  ibid., 
618.) 

With  the  exception  of  section  13,  act  of  January  16,  18S3, 
reproduced  in  section  120  of  the  criminal  code  (act  of  Mar.  4, 
1909),  which  prohibits  promotion,  degradation,  removal,  or  dis- 
charge of  any  officer  or  employee  for  giving  or  withholding  or 
neglecting  to  make  any  contribution  of  money  or  other  valuable 
thing  for  any  political  purpose,  no  legislative  declaration  ex- 
pressly bearing  upon  removals  from  office  is  made.  (Taylor  v. 
Taft,  24  App.  D.  C,  95.) 

Civil-service  rules  promulgated  by  the  Executive,  so  far  as 
they  deal  with  the  Executive  right  of  removal,  are  but  expres- 
sions of  the  will  of  the  President,  and  are  regulations  imposed 
by  him  upon  his  own  action,  or  that  of  heads  of  departments 
appointed  by  him.  They  do  not  give  the  employees  within  the 
classified  civil  service  any  such  tenure  of  office  as  to  confer  upon 
them  a  property  right  in  the  office  or  place.  (Morgan  v.  Nunn 
(1898),  84  Fed.  Rep.,  551;  Page  v.  Moffett,  85  Fed.  Rep.,  38; 
T.  D.  19027,  1898;  Keim  v.  U.  S.,  177  IT.  S.  290,  affirming  33 
Ct.  Cls.,  174.) 

Members  of  a  familv  in  public  service  limited.  (18  Op.  Atty. 
Gen.,  83;  26  ibid.,  260,  301.) 

Monthly  salaries.  Method  of  prorating  for  fractional  part  of 
a  month.     (XIII  Comp.  Dec,  1.) 

Rules  for  division  of  time  and  computation  of  pay  for  persons 
in  the  Government  service  receiving  a  yearly  or  monthly  com- 
pensation. (Sec.  6,  Act  of  June  30,  1906;  34  Stat.,  763  (sundry 
civil  appropriation  act);  Dept,  Cir.  No.  67,  July  5,  1906.) 

Sec.  7.  [Act  of  March  15,  1898;  50  Stat,  317.  {Legis- 
lative, executive,  and  judicial  appropriation  act.)} 

That  section  five  of  the  Act  making  appropriations  for 
legislative,  executive,  and  judicial  expenses,  approved 
March  third,  eighteen  hundred  and  ninety-three,  is  hereby 
amended  to  read  as  follows: 

Hereafter  it  shall  be  the  duty  of  the  heads  of  the  sev-    seven  hours' 
eral  Executive  Departments,  in  the  interest  of  the  public  ciS!sreandrother 
service,  to  require  of  all  clerks  and  other  employees,  of  employees. 
whatever  grade  or  class,  in  their  respective  Departments, 
not  less   than  seven  hours   of  labor  each   day,   except 
Sundaj^s  and  days  declared  public  holidays  by  law  or 
Executive  order :  Provided,  That  the  heads  of  the  Depart 
ments  may,  by  special  order,  stating  the  reason,  further 
extend  the  hours  of  any  clerk  or  employee  in  their  De- 
partments, respectively;  but  in  case  of  an  extension  it 
shall    be     without     additional    compensation:  Provided    Thirty  day 's 
further,  That  the  head  of  any  Department  may  grant  tuh  pay. 


52  OEGANIZATION    OF    OFFICE. 

thirty  days'  annual  leave  with  nay  in  any  one  year  to 
Thirty  days'  each  clerk  or  employee :  And  provided  further,  That  where 
nuaUKux  in  case  some  member  of  the  immediate  family  of  a  clerk  or 
of  sickness,  etc.    emp}0yee  is  afflicted  with  a  contagious  disease  and  re- 
quires the  care  and  attendance  of  such  employee,  or  where 
his  or  her  presence  in  the  Department  would  jeopardize 
the  health  of  fellow-clerks,  and  in  exceptional  and  meri- 
torious cases,  where  a  clerk  or  employee  is  personally  ill, 
and  where  to  limit  the  annual  leave  to  thirty  days  in  any 
one  calendar  year  would  work  peculiar  hardship,  it  may 
be  extended,  in  the  discretion  of  the  head  of  the  Depart- 
ment, with  pay,  not  exceeding  thirty  days  in  any  one  case 
or  in  any  one  calendar  year. 

This  section  shall  not  be  construed  to  mean  that  so 
long  as  a  clerk  or  employee  is  borne  upon  the  rolls  of  the 
Department  in  excess  of  the  time  herein  provided  for  or 
granted  that  he  or  she  shall  be  entitled  to  pay  during  the 
period  of  such  excessive  absence,  but  that  the  pay  shall 
stop  upon  the  expiration  of  the  granted  leave.     *     *     * 

The  act  of  July  7, 1898  (30  Stat.,  653),  provides  that  " Nothing 
contained  in  section  seven  of  the  act  making  appropriations  for 
the  legislative,  executive,  and  judicial  expenses  of  the  Govern- . 
ment  for  the  fiscal  year  eighteen  hundred  and  ninety-nine, 
approved  March  fifteenth,  eighteen  hundred  and  ninety-eight 
shall  be  construed  to  prevent,  the  head  of  any  Executive  Depart- 
ment from  granting  thirty  days  annual  leave  with  pay  in  any 
one  year  to  a  clerk  or  employee,  notwithstanding  such  clerk  or 
employee  may  have  had  during  such  year  not  exceeding  thirty 
davs  leave  with  pav  on  account  of  sickness  as  provided  in  said 
section  seven.     (Dept.  Cir.  No.  52,  July  7,  1908.1 

Hours  of  labor.  (Cir.  No.  655;  T.  D.  756.)  Time  records. 
Hours  of  work  (Cir.  No.  67,  Dec.  27,  1910.     T.  D.  31150). 

Meaning  of  the  phrase  "Exceptional  and  meritorious."  (20 
Op.  Atty.  Gen.,  716.) 

Recording  clocks  not  to  be  used.  (Act  Julv  7,  1898;  30  Stat., 
655.) 

It  shall  be  the  duty  of  the  heads  of  the  several  executive 
departments  of  the  Government  to  report  to  Congress  each  year 
in  the  annual  estimates  the  number  of  employees  in  each  bureau 
and  office  and  the  salaries  of  each  who  are  below  a  fair  standard 
of  efficiency.  (Sec.  2,  act  of  July  11,  1890,  Supp.  R.  S.,  vol.  1, 
2d  ed.,  p.  773;  26  Stat.,  268.) 

Term  of  tem-     Sec.  4.  [Act  of  February  2 4, 1899;  30  Stat. ,889.   (Legis- 
eSjed. servke  ^a^ve;   executive,  and  judicial  appropriation  act,   1900.)] 
***** 

No     honorary  The  establishment  of  a  civil  pension  roll  or  an  honorable 
service  roil.        service  roll,  or  the  exemption  of  any  of  the  officers,  clerks, 
and  persons  in  the  public  service  from  the  existing  laws 
respecting  employment  in  such  service,  is  hereby  pro- 
Tbirty  days' hibited:  Provided ',  That  the  thirty  days'  annual  leave  of 
absence. lravP  °' absence  with  pay  in  any  one  year  to  clerks  and  employees 
in  the  sev<  r.il  Executive  Departments  authorized  by  exist- 
ing law  shall  be  exclusive  of  Sundays  and  legal  holidays. 

Dept.  Cir.  No.  66,  December  12,  1910.  Regulations  relative  to 
leaves  of  absence  promulgated;  effective  January  1,  1911. 


ORGANIZATION    OF    OFFICE.  53 

Sec.  3.  [Extract  from  the  legislative,  executive,  and  judi-  d^ks^ramfe^ 
cial  appropriation  act  for  the  fiscal  year  ending  June  30,  to  classified  serv- 
1903,  approved  Apr.  28,  1902.     (32  Stat,  120,  171 .)] 

That  the  additional  clerks  on  the  temporary  rolls  and 
other  employees  rendered  necessary  because  of  increased 
work  incident  to  the  war  with  Spain,  and  under  the  Act 
of  June  thirteenth,  eighteen  hundred  and  ninety-eight, 
providing  for  war  expenditures  and  for  other  pur- 
poses, heretofore  appointed  and  who  are  now  employed 
in  the  several  departments  of  the  Government,  are  hereby 
transferred  to  the  classified  service  as  of  their  present 
grade  or  rate  of  compensation,  respectively,  and  shall  be 
continued  in  the  several  departments  where  nowemplo}red, 
without  further  examination,  subject,  however,  to  trans- 
fer, promotion,  or  removal  the  same  as  other  clerks  and 
employees  in  the  classified  service. 

***** 

Previous  laws  providing  for  temporary  clerks. 

Section  3,  act  of  June  13,  1898  (30  Stat.,  448). 

Act  of  July  7,  1898,  deficiency  appropriation  bill  (30  Stat., 
696,  705).  This  act  provided  for  an  appropriation  of  $500,000 
for  additional  temporary  force  in  the  Internal-Revenue  Service, 
to  be  available  during  the  fiscal  year  1899,  the  office  force  in  the 
Internal-Reveune  Bureau  to  be  appointed  by  the  Secretary  of 
the  Treasury  on  the  recommendation  of  the  Commissioner  of 
Internal  Revenue. 

Act  of  February  24,  1899,  legislative,  executive,  and  judicial 
appropriation  act  for  1900  (30  Stat.,  865). 

Appropriation  act  for  1901,  legislative,  executive,  and  judicial, 
approved  April  17,  1900  (31  Stat,,  107,  133). 

Appropriation  act  for  1902,  legislative,  executive,  and  judicial, 
approved  March  3,  1901  (31  Stat.,  982,  1009). 

Sec.  4.  [Extract  from    the    legislative,    executive,   and 
judicial  appropriation  act  for  the  fiscal  year  ending  June 
SO    1909,  approved  May  22,  1908      (35  Stat    *#.)]     It  VSA  depl£ 
shall    be    the    duty   ol    the    head    of    each    executive  ment  employees 
department    and    other    government    establishment    at  £* ^nh,S5yD re- 
Washington  to  submit  to  Congress  at  the  beginning  of  ported. 
each  regular  session  a  statement  showing  in  detail  what 
officers  or  employees  (other  than  special  agents,  inspec- 
tors, or  employees,  who  in  the  discharge  of  their  regular 
duties  are  required  to  constantly  travel)  of  such  execu- 
tive department  or  other  government  establishment  have 
traveled  on  official  business  from  Washington  to  points 
outside  of  the  District  of  Columbia  during  the  preceding 
fiscal  year,  giving  in  each  case  the  full  title  of  the  official 
or  employee,  the  destination  or  destinations  of  such  travel, 
the  business  or  work  on  account  of  which  the  same  was 
made,  and  the  total  expense  to  the  United  States  charged 
in  each  case. 


54  ORGANIZATION    OF    OFFICE. 

APPROPRIATION    FOR    COLLECTING    INTERNAL    REVENUE. 

[Extract  from  the  legislative,  executive,  and  judicial  appro- 
priation act  for  the  fiscal  year  ending  June  30,  1911 ,  ap- 
proved June  17,  1910  (36  Stat,  494.)]. 

***** 

For  salaries  and  expenses  of  collectors  of  internal  reve- 
nue, and  deputy  collectors,  and  surveyors,  and  clerks, 
messengers,  and  janitors  in  internal-revenue  offices,  two 
million  one  hundred  and  thirty-five  thousand  dollars: 
Provided,  That  no  part  of  this  amount  be  used  in  defray- 
ing the  expenses  of  any  officer,  designated  above,  sub- 
Expenses  of  of-  poenaed  by  the  United  States  courts  to  attend  anv  trial 

fleers  as  witnesses  1     p  tt    -a     l   di    j.  j.  r  •       j  • 

before  a  United  States  court  or  preliminary  examination 
before  any  United  States  commissioner,  which  expenses 
shall  be  paid  from  the  appropriation  for  "Fees  of  wit- 
nesses, United  States  courts." 

For  salaries  and  expenses  of  forty  revenue  agents  pro- 
vided for  by  law,  and  fees  and  expenses  of  gaugers,  sala- 
fnf7  revenue  rles  ancl  expenses  of  storekeepers  and  storekeeper-gaugers, 
two  million  four  hundred  and  twenty  thousand  dollars. 

For  rent  of  offices  outside  of  the  District  of  Columbia, 
telephone  service,  and  other  miscellaneous  expenses  inci- 
dent to  the  collection  of  internal  revenue,  and  for  the 
Miscellaneous  purchase  of  necessary  books  of  reference  and  periodicals 
expense:  ^QV  ^m  chemical  laboratory  and  law  library,  at  a  cost 

not  to  exceed  five  hundred  dollars,  and  reasonable  expenses 
for  not  exceeding  sixty  days  immediately  following  the  injury 
of  field  officers  or  employees  in  the  internal-revenue  service 
while  in  line  of  duty,  of  medical  attendance,  surgeon's  and 
hospital  bills  made  necessary  by  reason  of  such  injury,  and 
ceh°dUiniihierof/or  horses  crippled  or  Mlled  while  being  used  by  officers  in 
duty.  making  raids,  not  exceeding  one  hundred  and  fifty  dollars 

for  any  horse  so  crippled  or  Trilled,  one  hundred  thousand 
dollars. 

***** 

The  portion  italicized  was  in  the  legislative,  executive,  and 
judicial  appropriation  act  f<>r  1910  (act  of  Mar.  4,  1909;  35  Stat., 
845,  871;  T.  D.,  1363;  T.  D.  1640). 

The  Act  making  appropriations  for  the  legislative,  executive, 
and  judicial  expenses  of  the  government  for  the  fiscal  year  end- 
ing June  30,  1912,  contained  the  same  provisions  as  above, 
except  the  amount  appropriated  for  salaries  and  expenses  of 
collectors,  etc.,  was  $2,150,000,  and  the  amount  for  salaries  and 
expenses  of  40  revenue  agents,  etc.,  was  §2,520,000.  (36  Stat., 
1196.) 

For  expenses  of  collecting  the  corporation  tax,  see  p.  328. 

That  hereafter  law  books,  books  of  reference,  and  periodicals 
for  use  of  any  Executive  Department,  or  other  Government 
establishment  not  under  an  Executive  Department,  at  the  seat 
of  government,  shall  not  be  purchased  or  paid  for  from  any 
appropriat  ion  made  for  contingent  expenses  or  for  any  specific  or 
general  purpose  unless  such  purchase  is  authorized  and  payment 
therefor  specifically  provided  in  the  law  granting  the  appropria- 
tion. [Sec.  3,  legislative,  executive,  and  judicial  appropriation 
act.  approved  Mar.  L5,  L898  (30  Stat,,  277).] 

Books  of  reference  defined.     (VI  Comp.  Dec,  227,  312.) 


ORGANIZATION    OF    OFFICE.  55 

Sec.  7.  [Act  of  Mar.  15,  1898;  SO  Stat.,  316.  (Legis- 
lative, executive,  and  judicial  appropriation  act  for  1899.)] 
*  *  *  Hereafter  it  shall  be  the  duty  of  the  head  of 
each  Executive  Department  to  require  monthly  reports  to  Monthly  re- 
be  made  to  him  as  to  the  condition  of  the  public  business £°n  of  business11" 
in  the  several  bureaus  or  offices  of  his  Department  at 
Washington;  and  in  each  case  where  such  reports  disclose 
that  the  public  business  is  in  arrears,  the  head  of  the 
Department  in  which  such  arrears  exist  shall  require,  as 
provided  herein,  an  extension  of  the  hours  of  service  to  such 
clerks  or  employees  as  may  be  necessary  to  bring  up  such 
arrears  of  public  business. 

Hereafter  it  shall  be  the  duty  of  the  head  of  each 
Executive  Department,  or  other  Government  establish- 
ment at  the  seat  of  government,  not  under  an  Executive 
Department,  to  make  at  the  expiration  of  each  quarter  Quarterly  re. 
of  the  fiscal  year  a  written  report  to  the  President  as  to  ports. 
the  condition  of  the  public  business  in  his  Executive 
Department  or  Government  establishment,  and  whether 
any  branch  thereof  is  in  arrears. 

Sec.  239.  Separate  accounts  shall  be  kept  at  the  Account  of  re- 
Department  of  the  Treasury  of  all  moneys  received  f rom  avenue1  internal 
internal  duties  or  taxes  in  each  of  the  respective  States, 
Territories,  and  collection-districts,  and  of  the  amount  of 
each  species  of  duty  and  tax  that  shall  accrue;  so  as  to 
exhibit,  as  far  as  may  be,  the  amount  collected  from  each 
source  of  revenue,  with  the  moneys  paid  as  compensation 
and  for  allowances  to  the  collectors  and  deputy  collectors, 
inspectors,  and  other  officers  employed  in  each  of  the 
respective  States,  Territories,  and  collection  districts. 

Sec.  261.  The  Secretary  of  the  Treasury  shall  annu-  MAgfro1n  f^. 
ally,  in  the  month  of  December,  lay  before  Congress  an  naFtaxes.m 
abstract,  in  tabular  form,  of  the  separate  accounts  of 
moneys  received  from  internal  duties  or  taxes  in  each  of 
the  respective  States,  Territories,  and  collection-districts, 
required  by  section  two  hundred  and  thirty-nine,  to  be 
kept  at  the  Treasury. 

Annual  detailed  report  of  receipts  and  expenditures.  Section 
15,  act  of  July  31,  1894  (28  Stat.,  210). 

Sec.  196.  The  head  of  each  Department,  except  the of A^audal  J^t 
Department  of  Justice,  shall  furnish  to  the  Congressional partment. 
Printer  copies  of  the  documents  usually  accompanying  his 
annual  report,  on  or  before  the  first  day  of  November  in 
each  year,  and  a  copy  of  his  annual  report  on  or  before  the 
third  Monday  in  November  in  each  year. 

Provided,  That  of  the  reports  of    *     *  the  Commissioner 

of  Internal  Revenue,  *  *  *  the  usual  number  only  shall  be 
printed.  Act  of  January  12,  1895  (28  Stat.,  601,  616);  Supp., 
R.  S.,  vol.  2,  p.  356. 

Xo  head  of  any  Executive  Department,  or  of  any  bureau, 
branch,  or  office  of  the  Government,  shall  cause  to  be  printed, 
nor  shall  the  Public  Printer  print,  any  document  or  matter 
except  that  which  is  authorized  by  law  and  necessary  to  the 
public  business;  and  executive  officers,  before  transmitting 
their  annual  reports,  shall  carefully  examine  the  same  and  all 


56  ORGANIZATION    OF    OFFICE. 


accompanying  documents,  and  exclude  therefrom  all  matter, 
including  engravings,  maps,  drawings,  and  illustrations,  except 
such  as  they  shall  certify  in  their  letters  transmitting  such 
reports  are  necessary  and  relate  entirely  to  the  transaction  of 
the  public  business.  Section  94,  act  of  January  12,  1895  (28 
Stat.,  601), 

No  printing  and  binding  shall  be  done  by  the  Public  Printer 
for  the  several  Executive  and  Judicial  Departments  of  the  Gov- 
ernment in  any  fiscal  year  in  excess  of  the  amount  of  the  allot- 
ment for  such  Departments. 

Heads  of  Executive  Departments  shall  direct  whether  reports 
made  to  them  by  bureau  chiefs  and  chiefs  of  divisions  shall  be 
printed  or  not.     Act  of  Aug.  5,  1892  (27  Stat.,  388). 

No  report,  document,  or  publication  of  any  kind  distributed 
by  or  from  an  Executive  Department  or  Bureau  of  the  Govern- 
ment shall  contain  any  notice  that  same  is  sent  with  "the  com- 
pliments" of  an  officer  of  the  Government,  or  with  any  special 
notice  that  it  is  so  sent,  except  that  notice  that  it  has  been  sent, 
with  a  request  for  an  acknowledgment  of  its  receipt,  may  be 
given.     Act  of  January  12,  1895.     (28  Stat.,  601,  620.) 


Title  XXXV— INTERNAL  REVENUE. 

REVISED  STATUTES. 


Chapter  One. 
OFFICERS  OF  INTERNAL  REVENUE. 


Sec. 

3140  (amended).  Definitions. 

3141.  Collection  districts. 

3142.  Collectors. 

3143  (amended).  Collectors'  bonds. 

3144  (amended).  Collectors  to  be  disburs- 

ing agents. 

3145.  (Obsolete.) 

3146.  Accounts  of  collectors  adjusted  ac- 

cording to  fiscal  year. 

3147.  Apportionment  of  compensation  of 

collectors. 

[3148].  Sees.  12  and  13,  act  February  8, 
1875,  as  amended.  Collectors' 
compensation  and  allowances. 
Deputy  collectors  and  their  sal- 
aries. 

3149  (amended).  Disability  or  vacancy  in 
office  of  collector. 

[3149a].  Authority  to  detail  deputy  col- 
lectors. 

3150.  Deputy  collector,  when  entitled  to 

collector's  salary. 

3151.  Repealed. 

3152  (amended).  Internal-revenue  agents. 
[3152a].  Additional  agents. 

3153.  Storekeepers;   salaries  and   bonds. 

Office  of  storekeeper  and  ganger. 
[3153a].  Compensation  and  bond. 
[31536].  Storekeepers  at  distilleries  that 

mash  less  than  GO  bushels  of  grain 

per  day. 
[3153c].  Storekeepers  at  distilleries  whose 

registered  capacity  is  20  bushels 

or  less. 
[3153a7].  Assignment  of  storekeeper  and 

ganger. 

3154.  Assignment  and  transfer  of  store- 

keepers. 
[3154a.]  Sec.    63,     act     Aug.     28,     1894 
(amended).      Compensation      of 
store  -  keepers       and       gaugers. 
Transfers  and  details. 

3155.  Temporary  storekeepers. 

3156.  Gaugers. 

[3156a]  Assignment  of  gaugers. 

3157.  Gaugers'  fees. 
[3157a].  Same. 

[31576].  Gaugers  only  paid  for  actual 
service. 


Sec. 

[3157c].  Act  July  7,  1898.  Gaugers'  com- 
pensation. 

[3157c7].  Act  June  23, 1910.  Cumulative 
annual  leave  of  absence  to  store- 
keepers, gaugers,  and  store- 
keeper-gaugers. 
Act  July  7,  1884.  Officers  in  com- 
mission not  to  exceed  15  per 
cent  of  the  number  employed. 

3158.  Statement  under  oath  of  fees,  etc.; 

penalty. 

3159.  Repealed. 

3160.  Repealed.^ 

3161.  Officers  in   charge   of   exportation 

and  drawbacks. 

3162.  Collectors  and  superintendents  of 

exports  may  administer  oaths. 

3163  [and  3163a]  (amended).  Duties  of 
collectors  and  internal-revenue 
agents.  Commissioner  may  trans- 
fer and  suspend  certain  officers. 

3164.  Collectors  to  report  violations  of 
law  to  district  attorney. 

3165  (amended).  Revenue  officers  who 
may  administer  oaths  and  take 
evidence. 

3166.  Revenue  officers  specially  author- 
ized to  make  seizures. 

3167  (amended).  Revenue  officers  dis- 
closing operations  of  manufac- 
turers, etc.;  penalty. 

3168.  Officers  not  to  be  interested  in  cer- 

tain manufactures;  penalty. 

3169.  Officers  guilty  of  extortion,  receiv- 

ing unlawful  fees,  and  other  un- 
lawful acts;  penalty. 

[3169«].  Collectors,  etc.,  issuing  stamps 
before  payment;  penalty. 

[31696].  Laws  imposing  punishment  on 
internal-revenue  officers  applied 
to  certain  other  classes  of  persons. 

3170.  District   attorney    or    marshal    ac- 

cepting or  demanding  anything 
for  compromise  of  violations  of 
law. 

3171.  Officers  suffering  injuries  may  main- 

tain suit  for  damages. 


57 


58  OFFICERS   OF   INTERNAL  REVENUE. 

Definitions.  Sec  3140  [as  amended  by  the  act  of  Feb.  27,  1877  (19 

Stat.,  240)].  The  word  " State,"  when  used  in  this  Title, 
shall  be  construed  to  include  the  Territories  and  the  Dis- 
trict of  Columbia,  where  such  construction  is  necessary 
to  carry  out  its  provisions.  And  where  not  otherwise  dis- 
tinctly expressed  or  manifestly  incompatible  with  the  intent 
thereof,  the  word  "person,'"  as  used  in  this  title,  shall  be 
construed  to  mean  and  include  a  partnership,  association, 
company,  or  corporation,  as  well  as  a  natural  person. 

Sec.  1,  R.  S.  In  determining  the  meaning  of  the  Revised  Stat- 
utes, or  of  any  act  or  resolution  of  Congress  passed  subsequent 
to  February  twenty-fifth,  eighteen  hundred  and  seventy-one, 
words  importing  the  singular  number  may  extend  and  be  applied 
to  several  persons  or  things;  words  importing  the  plural  num- 
ber may  include  the  singular;  words  importing  the  masculine 
gender  may  be  applied  to  females;  *  *  *  the  word  "person" 
may  extend  and  be  applied  to  partnerships  and  corporations, 
and  the  reference  to  any  officer  shall  include  any  person  author- 
ized by  law  to  perform  the  duties  of  such  office,  unless  the  con- 
text shows  that  such  words  were  intended  to  be  used  in  a  more 
limited  sense;  and  a  requirement  of  an  "oath"'  shall  be  deemed 
complied  with  by  making  affirmation  in  judicial  form. 

Sec.  2.  The  word  "county"  includes  a  parish,  or  any  other 
equivalent  subdivision  of  a  State  or  Territory  of  the  United 
States. 

Sec.  3.  The  word  ' '  vessel "  includes  every  description  of  water 
craft  or  other  artificial  contrivance  used,  or  capable  of  being 
used,  as  a  means  of  transportation  on  water. 

Sec.  4.  The  word  "vehicle  "  includes  every  description  of  car- 
riage or  other  artificial  contrivance  used,  or  capable  of  being 
used,  as  a  means  of  transportation  on  land. 

Sec  5.  The  word  "company"  or  "association,"  when  used  in 
reference  to  a  corporation,  shall  be  deemed  to  embrace  the  words 
"successors  and  assigns  of  such  company  or  association,"  in  like 
manner  as  if  these  last-named  words,  or  words  of  similar  import, 
were  expressed. 

Person  includes  corporations.  (23  Int.  Rev.  Rec,  141;  15  Op. 
Atty.  Gen.,  230.)  The  term  "corporation,"  as  used  in  the  acts 
of  Congress  touching  internal  revenue,  does  not  include  a  State. 
(Georgia  v.  Atkins,  collector,  8  Int.  Rev.  Rec,  113.)  The  term 
"person  "  does  not  include  a  State.     (12  Op.  Atty.  Gen.,  176.) 

When  a  State  engages  in  commercial  business  for  a  profit,  it 
can  not  claim  exemption  from  taxation  on  the  principle  that  it 
is  a  tax  on  the  instrumentalities  of  the  State  government.  (South 
Carolina  v.  U.  S.,  39  Ct.  Cls.,  257;  T.  D.  759;  199  U.  S.,  437; 
T.  D.  961.) 

Astothemeaningof  the  term  "revenue  law."  (United  Statesi). 
Hill,  123  TJ.  S.,  681.) 

collection  dis-  Sec.  3141.  For  the  purpose  of  assessing,  levying,  and 
collecting  the  taxes  provided  by  the  internal-revenue 
laws,  the  President  may  establish  convenient  collection- 
districts,  and  for  that  purpose  he  may  subdivide  any 
State,  Territory,  or  the  District  of  Columbia,  or  may 
unite  two  or  more  States  or  Territories  into  one  district . 
and  may  from  time  to  time  alter  said  districts:  Provided, 
Thai  the  number  of  disi  nets  in  any  State  sit  a  11  not  exceed 
the  number  of  Representatives  in  Congress  to  which  such 
Stat  e  was  entitled  in  the  Thirty-seventh  Congress,  except 
in  such  States  as  were  entitled  to  an  increased  representa- 
tion in  the  Thirty-eighth  Congress,  in  which  States  the 
number  of  districts  shall  aol  exceed  the  number  of  Rep- 


OFFICERS    OF    INTERNAL   REVENUE.  59 

resent  atives  to  which  any  such  State  was  so  entitled :  And  cJrlT^a\  e  r  r  ° r 
provided  further,  That  in  the  State  of  California  the  Presi-    Act   Feb.   •->;, 
dent  may  establish  a  number  of  districts  not  exceeding1*"  (19stat-'20)- 
the  number  of  Senators  and  Representatives  to  which 
said  State  was  entitled,  in  the  Thirty-seventh  Congress. 

The  power  of  the  President  to  change  or  alter  collection  dis- 
tricts considered.  (10  Op.  Atty.  Gen.,  469;  12  Op.  Atty.  Gen., 
51;  14  Op.  Atty.  Gen.,  215.) 

Supreme  court  will  take  judicial  notice  that  the  United  States 
is  divided  into  collection  districts  for  revenue  purposes.  (United 
States  v.  Jackson,  104  U.  S.,  41;  28  Int.  Rev.  Rec,  12.) 

Sec.  3142.  The  President,  by  and  with  the  advice  and  collectors. 
consent  of  the  Senate,  shall  appoint  for  each  collection 
district  a  collector,  who  shall  be  a  resident  of  the  same. 
When  two  or  more  collection-districts  are  united  by  him, 
he  may  designate  from  among  the  existing  officers  of  such 
districts  one  collector  for  the  new  district,  or,  at  his  dis- 
cretion, he  may  make  a  new  appointment  of  such  officer 
for  said  district. 

The  legislative  appropriation  act  for  1877,  passed  August  15, 
1876  (19  Stat.,  152),  reduced  the  number  of  internal-revenue  dis- 
tricts to  131. 

The  appropriation  act  for  1878,  passed  March  3,  1877  (19  Stat., 
303),  reduced  the  number  to  126.     (Supp.  It.  S.,  135.) 

Executive  order  of  June  25,  1883,  as  modified  by  orders  of  June 
30, 1883,  and  October  13  and  December  5, 1883,  reduced  the  num- 
ber of  districts  from  126  to  84. 

Executive  order  of  February  13, 1884,  reestablished  the  district 
of  Nevada  (which  in  1883  was  consolidated  with  Fourth  Cali- 
fornia), making  the  number  of  districts  85. 

The  number  of  districts  was  reduced  from  85  t»  63  by  Execu- 
tive order  of  May  21,  1887.     (33  Int.  Rev.  Rec,  157.) 

Hawaii  constituted  an  internal-revenue  district  by  act  of  April 
30,  1900  (31  Stat.,  141),  to  take  effect  June  14,  1900,  page  373. 
(T.  D.  157.) 

District  of  Oklahoma  established  February  6,  1911. 

The  number  of  collection  districts  in  the  country  at  present 
(February,  1911 )  is  67,  including  the  district  of  Oklahoma. 

Under  existing  law  there  is  no  limitation  placed  on  the  term 
of  office  of  collectors  of  internal  revenue,  and  in  this  respect 
this  office  differs  from  other  civil  officers  of  the  Government. 
(Commissioners'  reports,  1877  and  1881.) 

Judicial  notice  will  be  taken  of  the  official  character  and  the 
official  acts  of  the  collector  and  his  deputy.  (Leach  v.  Snyder 
(1886),  112  Pa.,  161.) 

Sec.  238.  The  commissions  of  all  officers  employed  in  levying 
or  collecting  the  public  revenue  shall  be  made  out  and  recorded 
in  the  Department  of  the  Treasury,  and  the  seal  of  the  Depart- 
ment affixed  thereto.  But  the  seal  shall  not  be  affixed  to  any 
such  commission  before  the  same  has  been  signed  by  the  Presi- 
dent. 

Sec.  3143  [as  amended  by  sec.  2,  act  Mar.  1,  1879  (^bo^°sllector's 
Stat.,  327),  and  by  sec.  5,  act  Mar.  2,  1895  (28  Stat,  807)]. 
Every  collector,  before  entering  upon  the  duties  of  his 
office,  shall  execute  a  bond  for  such  amount  as  may  be 
prescribed  by  the  Commissioner  of  Internal  Revenue, 
under  the  direction  of  the  Secretary  of  the  Treasury,  with 
not  less  than  five  sureties,  to  be  approved  by  the  Solicitor 
of  the  Treasury,  conditioned  that  said  collector  shall  faith- 
fully perforin  the  duties  of  his  office  according  to  law,  and 


60  OFFICERS    OF    INTERNAL,   REVENUE. 

shall  justly  and  faithfully  account  for  and  pay  over  to  the 
United  States,  in  compliance  with  the  order  or  regulations 
of  the  Secretary  of  the  Treasury,  all  public  moneys  which 
may  come  into  his  hands  or  possession;  and  he  shall, 
from  time  to  time,  renew,  strengthen,  and  increase  his 
official  bond,  as  the  Secretary  of  the  Treasury  may  direct, 
with  such  further  conditions  as  the  said  Commissioner 
shall  prescribe;  and  he  shall  execute  a  new  bond  whenever. 
required  so  to  do  by  the  Secretary  of  the  Treasury,  with  such 
conditions  as  may  be  required  by  law  or  prescribed  by  the 
Commissioner  of  Internal  Revenue,  with  not  less  than  five 
sureties;  which  new  bond  shall  be  in  lieu  of  any  former  bond 
or  bonds  of  such  collector  in  respect  to  all  liabilities  accruing 
after  the  date  of  its  approval  by  the  Solicitor  of  the  Treasury. 
Said  bonds  shall  be  filed  in  the  office  of  the  Secretary  of  the 
Treasury. 

Proceedings  against  delinquent  collectors.  (Sees.  3624,  3625, 
3633,  Appendix,  pp.  407,  408.) 

Claims  for  credit  in  suits  brought  by  the  United  States.  (Sec. 
951,  p.  424.) 

Act  relative  to  allowing  certain  corporations  to  be  accepted  as 
surety.     (Act  August  13,  1894.)     See  pp.  368,  369. 

A  bond  takes  effect  upon  its  acceptance  and  approval.  (19 
How.,  73.) 

Collector  approving  worthless  bonds;  liability  of  collector's 
bond  for  loss  sustained  by  Government.  (United  States  v. 
Thorn,  9  Int.  Rev.  Rec,  65*.) 

Collectors  are  liable  to  prosecution  for  accepting  fraudulent 
bonds,  as  well  as  liable  on  their  official  bonds  for  loss.  (United 
States^.  Callicott,  7  Int.  Rev.  Rec,  177;  Fed.  Cas.  No.  14710. 

Collector  and  deputy  collector  indicted  jointly  with  others. 

Allowance  to  collectors;  set-offs.  (Hall  v.  United  States,  91 
U.  S.  (1  Otto),  559.) 

Gangers'  fees  received  by  collectors;  Treasury  settlements. 
(Soule  et  sdv.  United  States,  100  U.  S.  (10  Otto),  8;  26  Int.  Rev. 
Rec,  4.) 

Question  of  credits,  time  when  compensation  commences. 
(United  States  v.  Flanders,  112  U.  S.,  88;  30  Int.  Rev.  Rec,  397.) 

Due  diligence.  (United  States  v.  Kimball,  101 U.  S.  (11  Otto), 
725). 

Money  received  from  sale  of  stamps;  use  of  old  form  of  bond. 
(United  States  v.  Hough,  103  U.  S.  (13  Otto),  71.) 

Bond  not  void  because  district  is  not  stated.  (United  States  v. 
Jackson,  104  U.  S.  (14  Otto) ,41;  28  Int.  Rev.  Rec,  12.) 

Collectors'  receipts;  certified  transcripts.  (United  States  v. 
Hunt,  105  U.  S.  (15  Otto),  183;  28  Int.  Rev.  Rec,  134.) 

Evidence.     (United  States  v.  Stone,  106  U.  S.  (16  Otto),  525.) 

The  addition  of  a  condition,  not  specifically  named  in  the  act 
of  Congress,  that  obligors  shall  not  be  liable  if  each  and  every 
deputy  appointed  by  the  collector  shall  truly  and  faithfully 
execute  and  discharge  all  the  duties  of  such  deputy  collector 
according  to  law,  does  not  relieve  the  sureties.  Mode  of  settling 
accounts  of  collectors;  mode  of  prosecuting  suits,  etc.  (Chad- 
wick  v.  United  States,  3  Fed.  Rep.,  750.) 

Liability  of  sureties:  Sureties  liable  for  taxes  collected  and 
not  accounted  for.  (United  States  v.  Harry  Chase  et  al.,  22 
Int.  Rev.  Rec,  11;  King  v.  United  Stats,  99  U.  S.,  229.) 

A  bond  requiring  a  faithful  performance  of  official  duty  is  as 
binding  upon  the  principal  and  his  sureties  as  if  all  the  statutory 
duties  and  official  regulations  of  the  office  were  inserted  in  the 
bond.     (Pond  v.  United  States,  i  11  Fed.  Rep.,  995.) 

Liability  of  sureties  when  duties  are  imposed  on  principal  by 
laws  subsequent  to  the  execution  of  the  bond.     (United  States 


OPFICEKS    OF    INTERNAL   REVENUE.  61 

v.  McCartney,  26  Int.  Rev.  Rec,  28.)  This  question  and  other 
questions  relating  to  sureties  on  official  bonds  considered.  (30 
Int.  Rev.  Rec,  161,  166.) 

Change  in  the  regulations  subsequent  to  the  execution  of 
bond  putting  deputy  collectors  in  the  classified  civil  service 
did  not  relieve  the  sureties  from  liability.  (Laffan  v.  U.  S. 
122  Fed.  Rep.,  333;  T.  D.  653.) 

Liability  of  a  surety  on  an  official  bond  is  strict!  juris;  surety 
not  to  be  held  responsible  for  the  conduct  of  his  principal  beyond 
the  scope  of  his  undertaking  reasonably  construed.  (United 
States  v.  Adams  et  al.,  31  Int.  Rev.  Rec,  261.) 

In  a  suit  on  collector's  bond,  where  one  of  the  sureties  had 
signed  the  bond  in  blank  already  signed  by  the  principal,  with 
an  understanding  with  the  principal  that  only  a  certain  amount 
was  to  be  inserted  therein  as  penalty,  and  with  the  further 
understanding  that  two  additional  sureties  were  to  be  furnished, 
each  worth  a  certain  sum,  and  where  the  bond  was  afterwards 
completed  by  the  insertion  of  an  amount  larger  than  thai  agreed 
upon,  and  signed  by  two  worthless  sureties,  and  afterwards  the 
bond  was  delivered  to  the  proper  officer  of  the  <  government,  who 
accepted  it  in  the  belief  that  it  was  properly  executed  and  with 
no  notice  of  the  private  agreement,  held  that  the  first  surety 
was  liable.  Case  not  distinguished  in  principle  from  Dair  v. 
United  States  (16  Wall.,  1).  (Butler  v.  United  States,  21  Wall., 
272.) 

A  judgment  against  a  defaulting  collector  does  not  bind  a 
surety  on  his  bond  unless  the  surety  was  a  party  to  the  action ; 
and  no  Federal  statute  creates  a  lien  on  the  property  of  a  col- 
lector of  internal  revenue  or  his  sureties  from  the  execution  of 
his  official  bond,  or  from  the  elate  of  any  default  thereon. 
(United  States  v.  Ingates,  circuit  court,  southern  district  of 
Alabama  (1891);  48  Fed.  Rep.,  251.) 

Accounts  must  be  stated  to  show  liability  under  each  bond. 
(United  States  v.  Barton  Abel;  15  Int.  Rev.  Rec,  41  and  50.) 

Public  officers  liable  for  all  moneys  that  come  into  their  hands 
officially.  (United  States  v.  Prescott,  3  How.,  378;  Pond  et  al 
v.  U.  S.  (suit  on  bond  of  Collr.  Welburn),  111  Fed.  Rep.,  989.) 

The  payment  of  money  to  the  deputy  collector  without  receiv- 
ing stamps  therefor  was  not  a  payment  of  the  tax  on  the  brandy; 
the  money  did  not  become  public  money  in  the  hands  of  the 
collector,  and  the  sureties  were  not  liable  for  it.  (United  States 
v.  Hermance  et  al.,  15  Blatch.,  6.) 

Stamps  are  the  equivalent  of  money  in  the  hands  of  the 
collector.     (Pond  v.  United  States,  111  Fed.  Rep.,  989.) 

Liabilities  of  sureties  on  temporary  bond.  (United  States  v. 
Kirkpatrick,  9  Wheat.,  720.) 

The  collector's  bond  is  a  contract  for  the  indemnity  of  the 
United  States  alone  and  not  for  the  indemnity  of  private  per- 
sons.    (Clark  v.  United  States,  60  Ga.,  156.) 

The  direction  of  the  commissioner  to  execute  a  new  bond  must 
be  considered  as  the  direction  of  the  Secretary  of  the  Treasury. 
(Soule  v.  United  States,  100  U.  S.,  8.) 

Correction  of  error:  If  the  name  of  a  person  in  a  written  in- 
strument was  wrong,  or  applies  to  a  wrong  person,  the  court 
will  correct  it  by  construction,  when  it  is  apparent  upon  the 
face  of  the  instrument  that  the  error  exists  and  in  what  manner 
it  should  be  corrected  to  carrv  out  the  intention  of  the  parties. 
(Richmond  v.  Woodward,  32  Vt.,  283.) 

A  married  woman  will  not  be  accepted  a--  a  surety. 

No  surety  can  hold  office  under  his  principal.  (43  Int.  Rev. 
Rec,  438;  Dept.  Cir.  No.  70,  Nov.  23,  1907.) 

Death  of  surety  does  not  relieve  estate.  (Pond  v.  United 
States,  111  Fed.  Rep.,  989.) 

Official  bonds — preparation,  sureties,  renewal,  notices  of 
approval,  etc.     (Dept.  Cir.  No.  65,  May  29,  1905.) 

Rules  regulating  the  execution  of  bonds  under  the  Treasury 
Department.     (Dept.  Cir.  No.  70,  Nov.  23,  1907.) 


62  OFFICERS   OF   INTERNAL   REVENUE. 

AYhere  under  the  act  of  March  2,  1895,  page  37l.au  officer 
renews  his  bond  by  giving  a  bond  during  the  same  term  of 
office,  the  new  bond  doe?  not  operate  to  release  the  sureties  on 
the  first  bond  from  liability  lor  future  transactions,  but  the 
sureties  on  the  old  and  new  bonds  are  jointly  and  severally 
liable  therefor.      5  Comp.  Dec.,  918.) 

Official  bonds  are  to  be  examined  every  two  years,  and  to  be 
renewed  every  four  years  or  oftener.  These  bonds  are  to  be 
filed  with  the  Secretary  of  the  Treasury.  (Sec.  5,  act  of  Mar. 
2,  1895,  28  Stat.,  764.)    See  page  371. 

Notice  of  deficiency  in  accounts  of  principals  to  be  given  to 
sureties  upon  bonds  of  United  States  officials;  limitation  of 
time  within  which  suit  shall  be  brought  against  sureties  on  said 
bond.     (Act  of  Aug.  8,  1888.)     See  page  372. 

Sec.    3144  [as  amended  by  sec.  2,  act  of  Mar.  1,  1879 

(20  Sfat..  327),  and  hi  sec.  5  of  the  act  of  Mar.  2,  1895 

{28  Stat.,  807)].     It  shall  be  the  duty  of  collectors  of 

collectors     to  internal  revenue  to  act  as  disbursing  agents  of  the  Treas- 

act  as  disbursing  »         ,,  _lj>ii  j?        ii  £  ± 

agents.  iiiT  for  the  payment  of  all  expenses  of  collection  of  taxes 

ami  other  expenditures  for  the  internal  revenue  service 
within  their  respective  districts,  under  regulations  and 
instructions  from  the  Secretary  of  the  Treasury,  on 
giving  good  and  sufficient  bond,  with  such  sureties,  in 
such  form,  and  in  such  penal  sum,  as  shall  be  prescribed 
*  *  *  and  approved  by  the  Secretary  of  the  Treasury, 
for  the  faithful  performance  of  their  duties  as  such  dis- 
bursing agents;  but  no  additional  compensation  shall  be 
paid  to  collectors  for  such  services. 

The  words  ' '  by  the  First  Comptroller  of  the  Treasury  "  omitted 
in  view  of  the  following  act:  Hereafter  all  bonds  of  *  *  * 
collectors  of  internal  revenue,  *  *  *  either  as  such  officers 
or  as  disbursing  officers  of  the  Treasury,  *  *  *  and  all  such 
bonds  new  on  file  in  the  Office  of  the  Comptroller  of  the  Treasury 
shall  be  transmitted  to  the  Secretary  of  the  Treasury  and  filed 
:  -  he  may  direct;  and  the  duties  now  required  by  law  of  the 
Comptroller  of  the  Treasury  in  regard  to  such  bonds,  as  the 
suce. — i  of  the  *  *  *  First  Comptroller  of  the  Treasury, 
shall  hereafter  be  performed  by  the  Secretary  of  the  Treasury, 
*    *    *.     [Sec.  5,  act  of  Mar.  2,  1895,  (28  Stat.,  807 ..] 

Afl  to  duties  of  disbursing  officers,  see  Appendix,  section  3620 
et  seq.,  page  404. 

Disbursing  officers  are  responsible  for  the  identity  of  the 
parties  to  whom  they  are  authorized  to  pay  money  and  for  the 
genuinene  matures  to  the  vouchers  returned  by  them. 

(Hartson  r.  United  Stales.  2]  I  t.  Cls.,  451.) 

The  bond  required  from  the  collector  as  disbursing  agent  is 
separate  from  and  additional  to  his  bond  as  collector.  (Hall  v. 
Ui  .17  Ct.  Cls.,  39.     See  Chadwiek  v.  United  States, 

3  Fed.  Rep.,  750.) 

Bond  of  collector  a*  disbursing  agent  held  to  cover  disburse- 
nvnts  to  storekeepers,  altho  office  of  storekeeper  was 

created  by  a  law  passed  subsequent  to  date  of  bond.     (United 
McCartney  and  other.-.  1  Fed.  Rep.,  104;  26  Int.  Rev 
Re 

Tie  ■-  on  this  bond  'ii'  individuals)  must  be  other  than 

those  on  bond  as  collector;  but  a  corporate  surety,  duly  quali- 
fied, may  be  accepted  as  surety  on  both  bonds. 

This  bond  mu-t  nol  be  executed  until  after  the  collector  has 
fully  qualified  as  such  by  executing  his  bond  as  collector  and 
taking  the  oath  of  office.  (Dept.  <  ir.  }s'o.  191,  Oct.  12,  1897-  43 
Int.  &  •  .  Rec.,  438.) 


OFFICERS   OF   INTERNAL   REVENUE.  63 

Sec.  3145    [as    to    collector's    salary    and    allowances. ju^ed°^^dS 
(Obsolete.)]     Superseded   by  sections   12   and   13,   act   of  to  fiscal  year. 
February  8,  1875,  as  amended.      [Sec.  314.S.1 

Sec.  3146.  In  adjusting  the  accounts  of  collectors 
(accruing  after  June  thirtieth,  eighteen  hundred  and 
sixty-four)  and  in  the  payment  of  their  compensation 
for  services,  the  fiscal  year  of  the  Treasury  shall  be 
observed. 

Collectors'  revenue  accounts  to  be  rendered  quarterly,  page  108. 
Collectors' di^bursiniraccountstoberendered  monthly,  page406. 
See  portion  237,   Revised  Statutes,   commencement  of  fij 
year.         ■  !     .Rev.  Rec,  197.) 

Sec.  3147.  When  any  part  of  the  compensation  of  the^^^^t 
collector  of  any  district  is  by  commission  upon  assess-  of  collectors. 
ments  or*  collections,  and.  in  consequence  of  a  new 
appointment,  is  due  to  more  than  one  collector  within 
the  same  year,  such  commissions  shall  be  apportioned 
between  such  collectors:  but  in  no  case  shall  a  greater 
amount  of  the  commissions  be  allowed  to  two  or  more 
collectors  in  the  same  district  than  shall  have  been  author- 
ized by  law  to  be  allowed  to  one  collector,  and  the  same 
rules  shall  apply  to  the  salaries  and  commissions  of  asses- 
sors and  collectors  heretofore  earned  and  accrued. 

But  no  payment  shall  be  made  to  collectors,  on  account    Certificate  of 

#     x     «  .  .    .  ,  i'j2  st   xi       commissioner  re- 

of  salaries  or  commissions,  without  tlie  certificate  ot  tne  quired. 
(  i  immissionerof  Internal  Revenue  that  all  reports  recmired 
by  law  or  regulation  have  been  received,  or  that  a  satis- 
factory  explanation  has   been  rendered  to  him  of   the 
cause  of  delay. 

See  section  12,  act  of  July  31,  1S94,  page  405. 

As  to  certificate  of  due  diligence,  see  section  3218,  pag'e  113. 

Circular  No.  275,  February  15,  1884  (30  Int.  Rev.  Rec.  E 
no  payments  to  be  made  to  a  collector  on  account  of  salaries,  etc.. 
until  all  reports  required  by  the  regulations  are  received  or  the 
failure  to  render  same  satisfactorily  explained. 

[Sec.  3148.]  [Sec.  12,  act  of  Feb.  8,  1875  (18  Stat.,  309), 
as  amended  by  sec.  2,  act  of  Mar.  1 ,  1879  (20  Stat.,  327).} 
That  each  collector  of  internal  revenue  shall  be  authorized 
to  appoint,  by  an  instrument  in  writing  under  his  hand, 
as  many  deputies  as  he  may  think  proper,  to  be  com-  orfeputy  coUect- 
pensated  for  their  services  by  such  allowances  as  shall  be 
made  by  the  Secretary  of  the  Treasury,  upon  the  recom- 
mendation of  the  Commissioner  of  Internal  Revenue. 

Allowances  shall  also  be  made  in  like  manner  for  salary  u.^r^  °oUe^ 
and  office  expenses  of  collectors,  all  of  which  shall  be  inors. 
lieu  of  the  salary  and  commissions  heretofore  provided 
by  law: 

Provided,  however,  That  the  salaries  of  collectors  shall 
be  fixed  at  two  thousand  dollars  each  per  annum  where 
the  annual  collections  amount  to  twenty-five  thousand 
dollars  or  less,  and  shall,  by  the  Secretary,  on  the  recom- 
mendation of  the  Commissioner,  be  graduated  up  to  the 

*This  word  "or"  is  erroneously  printed  "of"  in  the  Revised  Statutes,  edition  of 
1878. 


64  OFFICERS    OF    INTERNAL   REVENUE. 

maximum  limit  of  four  thousand  five  hundred  dollars; 
which  latter  sum  shall  be  allowed  in  all  cases  where  the 
collections  amount  to  one  million  of  dollars  or  upward; 
and  the  collector  shall  have  power  to  revoke  the  appoint- 
ment of  any  such  deputy,  giving  such  notice  thereof  as 
the  Commissioner  of  Internal  Revenue  may  prescribe, 
and  to  require  and  accept  bonds  or  other  securities  from 
any  deputy:  and  actions  upon  such  bonds  may  be  brought 
in  any  appropriate  district  or  circuit  court  of  the  United 
State'-;  \'\  Erich  courts  are  hereby  given  jurisdiction  of  such 
actions  concurrently  with  the  courts  of  the  several  States. 
or'fun'.'hor''!  y  Each  sucl]  deputy  shall  have  the  like  authority  in  every 
and  responsibif. respect  to  collect  the  taxes  levied  or  assessed  within  the 
portion  of  the  district  assigned  to  him  which  is  by  law 
rested  in  the  collector  himself;  but  each  collector  shall,  in 
every  respect,  be  responsible,  both  to  the  United  States 
and  to  individuals,  as  the  case  may  be,  for  all  moneys 
collected,  and  for  every  act  done  or  neglected  to  be  done, 
by  any  of  his  deputies  while  acting  as  such. 

The  right  of  collectors  to  commissions  on  taxes  collected  by 
the  sale  of  tax-paid  spirit  stamps  (sec.  3314,  p.  208)  was  not  taken 
from  them  by  the  act- of  March  1,  1879.  But  the  total  net  com- 
pensation of  collectors  can  not  in  any  case  exceed  $4,500  per 
annum.  (United  States  v.  Landram,  32  Int.  Rev.  Rec,  151; 
L18TJ.  S.,  81.) 

As  i"  compensation  for  duties  performed  before  taking  oath. 
(United  States  v.  Flanders,  1.12  U.S. ,  ss;  30  Int.  Rev.  Rec,  397.) 

Additional  allowance  of  salary  to  collectors.  (Utah  case,  2 
Lawrence  Dee.,  559;  28  Int.  Rev.  Rec,  293.) 

An  action  by  a  collector  of  internal  revenue  against  a  deputy 
collector  on  his  official  bond  may  be  removed  from  the  State 
court  lo  the  Federal  court  under  the  act  of  March  3,  1875.  (Ornef 
Hinders,  3  I  >il1on,  281.) 

The  act  of  Augusl  5,  1909,  page  372,  does  not  apply  to  bonds 
triven  by  deputy  collectors  to  the  collector.  (28  Op.  Atty. 
Gen.,  28.) 

A  deputy  collector  is  authorized  to  art  as  such  when  his  cora- 
miseion  has  been  signed  and  placed  in  the  mail  and  lie  is  notified 
thereof  by  telegram.     (United  States  v.  Sykes,  58  Fed.  Rep., 

1000.) 

No  appeal  lies  from  tie- decision  of  the  Secretary  as  to  making 
further  allowances.  Compensation  of  collectors  can  not  be 
revised  bythe  courts.  (United  States  v.  Hall,  2  Dillon,  42G;  91 
i  559.) 

Deputy  coll,. .tors  of  internal   revenue  are  appointed   under 

ction  31  is,  Revised  Statutes,  and  the  power  of  removal  rests 
with  the  appointing  power,  the  collector,  subject  to  such  require- 
iii'  to  notice  as  the  Commissioner  of  Internal  Revenue 

•  be,  and  such  action  can  no!  be  n  \  i<  wed  by  an  appeal 
I-  the  (Pag*    i.  Moffett,  collector,  U.  S.  circuit  court, 

di  tricl  of  New  Jersey,  85  Fed.  Hep.,  38;  T.  D.  19027,  1898.) 

irt  of  equity  will  not,  by  injunction,  restrain  a  collector 
from  making  a  removal  of  a  subordinate  employee.    (Morgan 

Nunn,  collector,  United  States  circuit  court,  middle  district 
of  Ten  84  Fed.  Rep.,  551;  T.  I).  19027,  1898;  White,  col- 

■r.  v.  Berrj  170  U.  S.,  366.) 

'    i  elaw,  power  of  removal.    (26  Op.  Atty.  Gen.,  363.) 

Appointment  and  dismissal  of  deputy  collectors.  (Cir.  No. 
717,  Mar.  24,  L908; T.  D.  13 

Deputy  collectors  included  in  the  classified  service.  Execu- 
tive  order,  November  7,  1906.    (T.  D.  1091.) 


OFFICERS    OF    INTERNAL,   REVENUE.  65 

Power  and  duties  of  deputy  collectors.  (Landram  r.  U.  S., 
16  Ct.  Cls..  : 

Assignment  of  deputv  collectors  of  internal  revenue  to  special 
or  sener.il  duty.     (Circular  letter  May  12,  1899,  T.  D.  21150 

Deputy   (  tors'   diary  report   and   monthlv  account   for 

ser  ices.  T.  1'  ..  21  '.  Jan.  21,  1901;  T.  D  .  1471. "Mar.  20,  1909; 
T.  D.,  1590,  Jan.  28,  1910;  T.  D..  1630,  May  21,  1910.) 

For  pay  purposes  all  months  in  the  year  are  reckoned  .  - 
containing  thirty  days.     (XIII  Comp.  Dec.,  1.) 

Entire  time  of  deputv  collectors  must  be  devoted  to  official 
duties     (Circular  No.  5*32.  May  11.  1899.  T.  D.,  211 

Transfer  of  deputv  collector  as  -  .  ■  _  ._  r.  P.  D.. 
1331.) 

Sec.  13.  [Ad  of  Feb.  8,  1875  (18  Stat..  .  as  amended 
by  sec.  2,  act  of  Mar.  / .  5 .  B0  Stat.,  S£7).]  That  there 
shall  be  further  paid,  after  the  account  thereof  has  been 
rendered  to  and  approved  by  the  proper  officers  oi  the 
Treasury,  to  each  collector,  his  necessary  and  reasonable 
charges  for  advertising,  stationery ,  and  blank  books  collectors'  ad- 
used  m  the  performance  ol  his  official  duties,  and  fortionery,i 
postage  actually  paid  on  letters  and  documents  received 
or  sent  and  exclusively  relating  to  official  business,  but 
no  such  account  shall  be  approved  or  allowed  unless  it 
states  the  date  and  the  particular  items  of  every  such 
expenditure,  and  shall  be  verified  by  the  oath  of  the 
collector:  Provided,  That  the  Secretary  of  the  Treasury,  Further  aiiow- 
on  the  recommendation  o(  the  Commisisoner  of  Internal8110 
Revenue,  be  authorized  to  make  such  further  allowances, 
from  time  to  time,  as  may  be  reasonable,  in  cases  in 
which,  from  the  territorial  extent  of  the  district,  or 
from  the  amount  of  internal  duties  collected,  it  may 
seem  just  to  make  such  allowances;  but  no  such  allow- 
ance shall  be  made  if  more  than  one  year  has  elapsed 
since  the  close  of  the  fiscal  year  in  which  the  services 
were  rendered. 

But  the  total  net  compensation  of  a  collector  >kall  i0^™™nn^ 
not  in  any  case  exceed  four  thousand  five  hundred  dol-conector. 
Lars  a  year:  and  no  collector  shah  be  entitled  to  any 
portion  of  the  salary  pertaining  to  the  office  unless  such 
collector  shall  have  been  confirmed  by  the  Senate,  ex- 
cept in  cases  of  commissions  to  lill  vacancies  occurring 
during  the.  recess  of  the  Senate. 

Deputy  collector's  pay.  (Herndon'a  claim.  2(5  Int.  "Rev. 
Rec  ,  314;  Herndon  V.  United  States.  15  Ct.  Cls.,  lit;:  26  Int. 
Rev.  Rec,  L98;  Wilson's  case,  2  Lawrence  Dec,  206.) 

Salary  of  deputy  collector.  Arc  deputv  collectors  officers? 
(Landram  v.  United  States,  Hi  Ct.  Cls..  74;  27  Int.  Rev.  Rec, 
80;  Opinion  of  Attorney  Gen.  Bonaparte;  26  Op.  Any.  Gen., 
363.)     Sec  note  under  section  3169,  page  81. 

Questions  of  salary  are  questions  of  contract,  and  the  Gov- 
ernment can  be  sued  in  Court  of  Claims  when  it  fail-  to  pay 
collector  his  salary.     (Patton  v.  United  State-.  7  Ct.  Cls.,  362.) 

Compensation  of  collectors  and  deputy  collectors  (Reg.  No. 
2.  revised,  pp.  64-6S.) 

The  salary  of  an  officer  begins  from  date  of  taking  oath  and 
entering  on  duty.     (IV  Comp.  Dec.,  59.) 

Collectors  of  internal  revenue  shall  render  their  revenue 
accounts  quarterly.     (Act  of  May  27,  190S;  35  Stat ..  317,  p.  108.) 

72170°— 11 5 


66  OFFICERS    OF   INTERNAL   REVENUE. 

and  express  bills  to  be  paid  by  direct  settlement. 

(T.  D.,  L372  ,        _  , 

'  Instructions  relative  to  shipments  of  property  by  officers  ot 
the  Internal  Revenue  Service,  and  payment  of  transportation 
charges  on  same.     (T.  D.,  1562.) 

v  D1Sabflin  offlS       SEC-  3149  &**  """  n(h>l  h'/  8eC-   ?'  ad  °f  ^Iar'  1}  1S-79  ^ 

rfSuStor.  °  Stat, 827).]  In  case  of  the  sickness  or  absence  of  a  col- 
lector, or  in  case  of  Ins  temporary  disability  to  discharge 
his  duties,  they  shall  devolve  upon  his  senior  deputy,  unless 
lie  shall  have  devolved  them  upon  another  of  his  deputies; 
and  for  the  official  acts  or  defaults  of  such  deputies  the 
collector  and  his  sureties  shall  be  held  responsible  to  the 
United  States. 
senior  deputy     In  case  of  a  vacancy  occurring  in  the  office  of  collector, 

charge" tor  '"the  deputies  of  such  'collector  shall  continue  to  act  until 
his  successor  is  appointed;  and  until  a  successor  is  ap- 
pointed, the  deputy  of  such  collector  senior  in  service  shall 
discharge  all  the  duties  of  collector,  and  also  the  duties  of 
disbursing  agent ;  and  of  two  or  more  deputies  appointed 
on  the  same  day,  the  one  residing  nearest  the  residence 
of  the  collector  \\  hen  t  he  vacancy  occurred  shall  discharge 
the  said  duties  until  another  collector  is  appointed. 

When  it  appear.-  to  the  Secretary  of  the  Treasury  that 
the  interest  of  the  Government  so  requires,  hemay,  by 
In-  order,  direct  the  said  duties  to  be.  performed  by  such 
other  one  of  the  said  deputies  as  he  may  designate. 

ia^ii'Tr.iV'm'v      1'"1'  fcne  "li"''il1  acts  and  defaults  of  the  deputy  upon 
acting.0'  'whom  said  duties  are  devolved  remedy  shall  be  had  on 

the  official  bond  of  the  collector,  as  in  other  cases;  and 
for  the  official  acts  and  defaults  of  such  deputy  as  acting 
disbursing  agent,  remedv  shall  be  had  on  the  official  bond 
of  the.  collector  as  disbursing  agent. 
(See  pre<eriine  And  any  bond  or  security  taken  from  a  deputy  by  a 
collector,  pursuant  to  section  twelve,  of  'An  act  to  amend 
existing  customs  and  internal-revenue  laws,  and  for  other 
purposes/  approved  February  eight,  eighteen  hundred 
and  seventy-five,  shall  be  available  to  his  legal  representa- 
tives and  sureties  to  indemnify  them  for  loss  or  damage 
accruing  from  any  act  or  omission  of  duty  by  the  deput}7- 
so  continuing  or  succeeding  to  the  duties  of  such  collector. 

Suspension  of  Collector -Francis  Widmer  on  charges  of  fraud 
by  supervisor.  Deputy  performing  duties  of  collector  entitled 
to  compensation.  (United  States  v.  Parden,  99  U.  S.,  10,  affirm- 
uvz,  L3Ct.  Cls.,  :;i7;  25  Int.  Rev.  Rec.,  55.) 

1  ommissioner'e  power  to  suspend  collectors.     (Sec.  3163a.) 

Death,  resignation,  <>r  removal  of  collector;  accounts.     ('Sec. 

L9.  p.  II'. 

(ill-  ity  Collectors  vacated  by  appointment  of  new 

Collector.    26  Op.  Atty.  Gen.,  363.    (T.  D.  1328.) 

deteiithor"v  ,M  Sec.  [31  19a.]  [Extract  from  flu  legislative,  executive, 
and  judicial  appropriation  act  for  the  fiscal  year  ending 
June  80.  1901,  approved  April  XI,  1900  (31 'Stat.,  107)'.] 
Provided,  That  tne  Commissioner  <l  internal  Revenue 
i-  authorized  to  detail  deputy  collectors  of  internal 
revenue    in  one  district    for  special   duty  in  other  dis- 


OFFICERS   OF   INTERNAL  REVENUE.  67 

tricts.  and  the  deputy  collectors  so  detailed  shall  be 
paid  by  the  collector  of  internal  revenue  and  disbursing 
agent  for  the  district  for  which  they  are  appointed  and 
for  which  the  allowance  for  their  salary  and  expenses  is 
made,  the  same  as  if  all  their  services  had  been  performed 
and  expenses  incurred  in  that  district.     *     *     * 

Act  of  June  29, 1906  (34  Stat.,  620),  provides  for  a  deputy  col- 
lector in  Porto  Rico,  page  374. 

Sec.  3150.  Anv  deputy  collector  who  has  performed  or    Deputy  coUeet- 

„  J,        r      A        ■,  _e  i  ji  i     ,•  £  or,  when  entitled 

may  perform,  under  authority  ot  law,  the  duties  ol  any  to  collector's  sai- 
collector  in  consequence  of  a  vacancy  in  the  office  of  said  ary- 
collector,  shall  be  entitled  to  receive  the  salary  and  com- 
missions allowed  by  law  to  such  collector,  or  the  allowance 
in  lieu  of  said  salary  and  commissions  allowed  by  the  Sec- 
retary of  the  Treasury  to  such  collector,  and  the  Secretary 
of  the  Treasury  may  make  to  such  deputy  collector  such 
allowance  in  lieu  of  salary  and  commissions  as  he  might 
lawfully  make  to  such  collector.  And  such  deputy  shall 
not  be  debarred  from  receiving  such  salary  and  commis- 
sions, or  allowances  in  lieu  thereof,  by  reason  of  the 
holding  of  another  Federal  office  by  said  collector  during 
the  time  for  which  such  deputy  acts  as  collector.  But  all 
payments  to  such  deputy  collector  shall  be  upon  duly 
audited  vouchers. 

Sec.  3151.  [relative  to  inspectors  of  tobacco  and  cigars, 
repealed  by  act  of  Aug.  4,  1886  (24  Stat.,  218).] 

Sec.  3152.  [as  amended  by  sec.  2,  act  of  Mar.  1, 1879  (20  J^t""™ 
Stat.,  327);  act  of  July  7, 1884  (23  Stat.,  172).]  _  The  Com- 
missioner of  Internal  Revenue  may,  whenever  in  his  judg- 
ment the  necessities  of  the  service  so  require,  employ 
competent  agents,  not  exceeding  at  any  time  twenty  in 
number,  to  be  paid  such  compensation  as  he  may  deem 
proper,  not  exceeding  in  the  aggregate  any  appropriation 
made  for  that  purpose;  and  he  may,  at  his  discretion, 
assign  any  such  agent  to  duty  under  the  direction  of  any 
officer  of  internal  revenue,  or  to  such  other  special  duty 
as  lie  may  deem  necessary;  and  no  general  or  special 
agent  or  inspector,  by  whatever  designation  he  may  be 
known,  of  the  Treasury  Department,  in  connection  with 
the  internal  revenue,  *  *  *  except  as  provided  for 
in  this  title,  shall  be  appointed,  commissioned,  employed, 
or  continued  in  office. 

The  agents  whose  employment  is  authorized  by  this  sec- 
tion shall  be  known  and  designated  as  internal-revenue 
agents,  and  they  shall  have  all  the  powers  of  entry  and 
examination  conferred  upon  any  officer  of  internal  reve- 
nue, by  sections  thirty-one  hundred  and  seventy-seven,  32|^fg77'  3277» 
thirty-two  hundred  and  seventy-seven,  thirty-two  hun- 
dred and  eighty-six,  and  thirty-three  hundred  and 
eighteen  of  the  Revised  Statutes;  and  all  the  provisions 
of  said  sections,  including  those  imposing  fines,  forfeitures, 
penalties,  or  other  punishments  for  the  enforcement 
thereof,  are  hereby  made  applicable  to  the  action  of  in- 


68  OFPICEBS   OF    INTERNAL  REVENUE. 

temal-revenue  agents,  in  the  same  manner  as  if  such 
agents  were  specially  named  in  each  of  said  sections. 
wa. we?, 3168,  Ami  all  the  provisions  of  sections  thirty-one  hundred 
;inil  sixty-seven,  thirty-one  hundred  and  sixty-eight, 
thirty-one  hundred  ami  sixty-nine,  and  thirty-one  hun- 
dred and  seventy-one  of  the  Kevised  Statutes  shall  apply 
to  internal-revenue  agents  as  fully  as  to  internal-revenue 
officers. 

Tin-  legislative,  executive,  and  judicial  appropriation  act, 
approved  July  7.  L884  (23  Stat.,  172),  provided  that  there  shall 
iii.i  be  employed  exceeding  20  agents,  in  lieu  of  the  number 
then  authorized  by  law. 

Before  this  act  the  number  authorized  was  35. 

Ten  additional  internal-revenue  agents  were  authorized  by 
section  ::,  acl  of  June  13,  1898  (30  Stat.,  450).  _ 

Twenty  additional  clerks  and  agents  authorized  by  section  47, 
act  of  June  L3,  L898  (30  Stat.,  450). 

Revenue  agents  may  In-  designated  to  examine  books  of  cor- 
porations  when  they  fail  to  make  return.  (Sec.  38,  act  of  Aug. 
5,  L909 

/.'■■■  nation  "/carriers. — Carriers  are  prohibited  from  giving 
information  concerning  shipments  handled  by  them,  except  in 
response  to  legal  process  from  the  court  or  proper  State  or  United 
States  officer.     <><■<-.  12,  act  of  June  18,  1910,  36  Stat.,  551.) 

[Sec.  3152  a.]     [Extract  from  the  legislative,  executive, 
and  hi'l'uial  appropriation  act  approved  April  28,  1002, 

UoTnTtentsai''li"(;"'  *'"' ' '■    '    '"'    '  '  ^  "J   .  !       *       *       ^  f°r  Salal'ieS    and   ^X- 

penses  of  twenty  additional  internal  revenue  agents  to  be 
appointed  and  employed  by  the  Commissioner  of  Internal 
Revenue,  and  these  twenty  agents  to  be  in  lieu  of  the 
agents  provided  for  and  appointed  under  the  provisions 
of  sections  three  and  forty-seven  of  the  Act  of  June  thir- 
teenth, eighteen  hundred  and  ninety-eight,  providing  for 
war  revenue  expenditures  and  other  purposes,  and  these 
to  be  the  only  internal  revenue  agents  employed  in  addi- 
tion to  those  provided  for  in  section  three  thousand  one 
hundred  and  fifty-two  of  the  Revised  Statutes.  The 
exist  ing  provisions  of  law  with  regard  to  internal  revenue 
agents  shall  apply  to  the  duties,  compensation,  and  ex- 
penses  of  these  twenty  additional  agents,     *    *    * 

Forty  agents  were  provided  for  in  the  legislative,  executive 
and  judicial  appropriation  act  I'm-  the  year  1911.     (Act  of  June 
17,  lulu;  36  Stat.,  494,  p.  54  i 

Additional  agents  were  pnn  Lded  forby  the  act  of  June  25  1910 
'  '•'"  wncy  appropriation  act  I  16  Stat.,  780),  to  be  employed  by 
loner  ol   Internal  Revenue,  with  the  approval  of 
retary  ol  (lie  Treasury,  for  carrying  out  the  provisions  of 

"i  theact  of  Augusl  5,  L909  (corporation  excise  tax) 

j.    •  •■  320. 

Nothing  in  section  4,  acl  of  August  5,  1882  (22  Stat.,  255),  shall 
rued  to  prevent  the  Commissioner  of  Internal  Revenue 
fr"m  .(l  one  revenue  agenl  for  duty  in  his  office     (At>- 

pendi   .  p.  43  v 


pensatioD  of   the  chief  of    the   internal-revenue  agents 
•s,lil11  ""'   '    ceed   ten  dollars  per  day,  and  of  the  other 


OFFICEES   OF  INTERNAL  REVENUE.  69 

agents  not  exceeding  seven  dollars  per  day  each;  and 
for  per  diem  in  lieu  of  subsistence,  while  traveling  on 
duty,  said  agents  shall  receive  at  a  rate  to  be  fixed  by  the 
Secretary  of  the  Treasury,  not  exceeding  three  dollars 
per  day.     *     *     * 

[Extract  from  the  legislative,  executive,  and  judicial  appropriation  act  for  the  year 
ending  June  30,  1906,  approved  February  3,  1905  (33  Stat.,  631,  052).] 


eviin- 


Provided,  That  internal-revenue  agents  assigned  to  the  in4|eaccountsa 
duty  of  examining  accounts  erf  collectors  of  internal  revenue 
shall  receive  for  per  diem  in  lieu  of  subsistence ,  when  absent 
from  their  legal  residences  on  duty,  a  sum,  to  be  fixed  by  the 
'Commissioner  of  Internal  Revenue,  approved  by  the  Secre- 
tary of  the  Treasury,  not  to  exceed  four  dollars. 

Internal-revenue  agents  and  inspectors  are  not  entitled  to 
compensation  nor  per  diem  in  lieu  of  subsistence  when  sick; 
neither  can  they  be  allowed  annual  leave.     (T.  D.  1580.) 

Salaries  not  to  be  paid  until  after  close  of  the  month.  (T.  D. 
1202.) 

Sec.  3153.  [as  amended  by  act  of  Aug.  15, 1876  (19  Stat,  Jj£&£33EZ 
152)].  There  shall  be  appointed  by  the  Secretary  of  the 
Treasury  such  number  of  internal  revenue  store-keepers 
as  may  be  necessary,  who  shall  each  receive  such  compen- 
sation, not  exceeding  four  dollars  a  day,  to  be  paid 
monthly  by  the  United  States,  as  may  be  determined  by 
the  Commissioner  of  Internal  Revenue.  No  store-keeper 
shall  be  engaged  in  any  other  business  while  in  the  service 
of  the  United  States,  without  the  written  permission  of 
the  Commissioner  of  Internal  Revenue.  Every  store- 
keeper shall  take  an  oath  faithfully  to  perform  the  duties 
of  his  office,  and  shall  give  a  bond,  to  be  approved  by  the  Bond. 
Commissioner  of  Internal  Revenue,  for  the  faithful  dis- 
charge of  his  duties,  in  such  form  and  for  such  amount  as 
the  Commissioner  may  prescribe. 

Bonds  of  gangers,  storekeepers,  and  storekeeper-gaugers  fixed 
at  $5,000,  Rules,  Circular  576,  July  2,  1900  (T.  D.  171). 
To  be  renewed  every  four  years.     (T.  D.  697.) 
Storekeeper's  bond.     Form  50  revised. 
Additional  bonds.     (T.  D.  548.) 

[Sec.  3153  a.]    Extract  from  legislative,  executive,  and 
judicial  appropriation  act  approved  August  15,  1876,  (19 
Stat.,   152).]     Hereafter  no  store-keeper  shall  receive,  a    compensation 
greater  compensation  than  four  dollars  per  day;   and  said      te  " 
gaugers  and  store-keepers  respectively  shall  only  receive 
compensation  when  rendering  actual  service. 

Henry  B.  McNeil  v.  The  United  States.     (35  Int.  Rev.  Rec, 
15;  23  Ct.  Cls.,  413.) 

That  the  Secretary  of  the  Treasury  may,  upon  the  rec-  office  of  "store- 
ommendation  of  the  Commissioner  of  Internal  Revenue,  g|r.-er  and  gau" 
impose  the  duties  of  storekeeper  and  gauger  upon  one 
officer,  where  the  amount  of  spirits  produced  at  the  dis- 
tillery to  which  such  officer  may  be  assigned,  is  not  suffi- 
cient in  the  judgment  of  the  Commissioner  to  warrant 
the  employment  of  two  officers  to  perform  the  separate 
duties  of  storekeeper  and  gauger. 


70  OFFICERS   OF   INTERNAL  REVENUE. 

compensation.  The  Secretary  of  the  Treasury  may  issue  a  commission 
to  such  officer  as  storekeeper  and  gauger,  but  the  com- 
pensation for  his  services  as  storekeeper  and  gauger  shall 
be  that  of  storekeeper  only. 

Bond.  And  the  said  officer  shall  before  entering  upon  the  dis, 

charge  of  such  duties  give  a  bond  in  the  penal  sum  of  not 
less  than  five  thousand  dollars  for  the  faithful  perform- 
ance of  the  combined  duties  of  storekeeper  and  gauger. 

storekeeper  [Sec.  3 153 b.]  [Sec.  64,  act  of  Aug. 28,1894(28  Stat.,  509).] 
sfs'Lenu*  as"That  the  officer  holding  the  combined  office  of  storekeeper 
and  gauger,  under  the  provisions  of  the  legislative,  execu- 
tive, and  judicial  appropriation  act,  approved  August  fif- 
teenth, eighteen  hundred  and  seventy-six  (Nineteenth 
Statutes,  page  one  hundred  and  fifty-two),  may  be  as- 
signed by  the  Commissioner  of  Internal  Revenue  to  per- 
form the  separate  duties  of  a  storekeeper  at  any  distillery, 
or  at  any  general  or  special  bonded  warehouse,  or  to  per- 
form any  of  the  duties  of  a  gauger  under  the  internal- 
revenue  laws. 

Bond.  And  the  said  officer,  before  entering  upon  the  discharge 

of  such  separate  duties,  shall  give  a  bond  to  be  approved 
by  the  Commissioner  of  Internal  Revenue  for  the  faithful 
discharge  of  his  duties  in  such  form  and  for  such  amount 
as  the  Commissioner  may  prescribe. 

Gaugers,  storekeepers,  and  storekeeper-gaugers  were  covered 
into  the  classified  civil  sendee  by  Executive  Order,  May  6,  1896. 
Storekeeper-gauger's  bond.  Form 50^  revised.  (T.  D.  1260.) 
Under  the  old  form  of  bond  of  a  storekeeper-gauger,  condi- 
tioned solely  for  the  faithful  discharge  of  his  duties,  recovery 
may  be  had  only  for  damages  actually  sustained  by  the  Gov- 
ernment. Such  bond  did  not  cover  fines  and  costs  imposed  in 
a  criminal  prosecution  of  such  officer.  April  12.  1909.  (T.  D. 
14S2.) 

[Sec.  3153c]     [Extract  from  sec.  2ofthe  legislative,  execu- 

tire,  and  judicial  appropriation  act,  approved  June  21, 

compensation  1879  (21    Stat,  23).]     Hereafter  storekeepers  at  distill- 

at    small    distill-       .         A      ,  u    1  j.i  ■  i_       i      1         i  •  1 

eries.  erics  tliut  mash  less  than  sixty  bushels  ol  gram  per  day 

shall  he  allowed  not  exceeding  fifty  dollars  per  month. 
But  when  one  person  acts  as  storekeeper  and  gauger,  his 
salary  snail  no!  exceed  four  dollars  per  day  for  the  time 

actually  employed. 

Storekeepers  are  nol  assigned  to  distilleries  of  this  capacity, 
but  storekeeper-gauger  are   o assigned. 

AN  A.CT  To  amend  the  provisions  of  the  acl  of  March  third,  eighteen 
hundred  and  eighty-five,  Limiting  the  compensation  of  storekeepers, 
augers,  and  storekeeper-gaugers  in  certain  places  to  two  dollars  a 
day,  and  brother  purposes,  approved  February  24, 1911.    (36  Stat., 

ll,  it  enacted,  etc.,  That  the  provisions  of  the  legislative, 
executive,  and  judicial  appropriations  Act  for  the  fiscal 
year  ending  June  thirtieth,  eighteen  hundred  and  eighty - 
six  (Twenty-third  Statutes,  page  four  hundred  and  four), 
approved  March  third,  eighteen  hundred  and  eighty-five, 
which  limits  to  two  dollars  per  day  the  compensation  of 
storekeepers,  gaugers,  and  storekeeper-gaugers  assigned  to 


OFFICERS   OF   INTERNAL  REVENUE.  71 

distilleries  whose  registered  capacity  is  twenty  bushels  or 
less,  be,  and  the  same  is  hereby,  amended,  so  as  to  read  as 
follows : 

"Hereafter  storekeepers,  gangers,  and  storekeeper-gangers 
who  are  assigned  to  distilleries  with  a  registered  capacity  of 
twenty  bushels  or  less,  or  who  are  assigned  to  other  places 
where  the  compensation  is  now  less  than  three  dollars  a  day,    ComPensatlon- 
shall  receive  three  dollars  a  day  for  services."     (T.  D.  1680.) 

Storekeepers'  and  storekeeper-gaugers'  monthly  bills.  Reg. 
No.  2,  revised,  p.  85. 

Assignments  of  storekeepers  and  gaugers  must  be  made  by 
the  Commissioner  of  Internal  Revenue  upon  the  recommenda- 
tion of  the  collector.     (Treas.  Dec.  (1899),  No.  20695.) 

Assignment  of  storekeeper-gaugers.  Cir.  No.  712.  (T.  D. 
1280);  Regulations  No.  7,  revised,  page  43. 

Transfer  of  storekeeper-gaugers.     (T.  D.  1331.) 

[Sec.  3153c7.]  That  the  internal-revenue  officer  holding  the  19£>ct  ^staf; 
combined  office  of  storekeeper  and  ganger  shall  hereafter  be  492.) 
known  and  denominated  as  a  storekeeper-gauger,  and  when 
performing  the  combined  duties  of  storekeeper-gauger,  or 
when  assigned  by  the  Commissioner  of  Internal  Revenue  to 
perform  the  duties  of  a  storekeeper  only  at  any  distillery,  or 
at  any  general  or  special  bonded  warehouse,  he  shall  receive 
for  his  services  the  compensation  of  storekeeper  only;  but 
when  assigned  by  the  Commissioner  of  Internal  Revenue  to 
perform  the  duties  of  ganger  only,  under  the  internal-revenue 
laws,  as  provided  by  those  laws,  he  shall  receive  only  the 
compensation  for  his  services  and  the  traveling  expenses 
which  are  allowed  by  law  to  United  States  gaugers. 

Act  June  28,  1902.     (32  Stat.,  492.) 

Sec.  3154.  One  or  more  storekeepers  shall  be  assigned  an^sstj.|n^f™e^ 
by  the  Commissioner  of  Internal  Revenue  to  every  bonded  storekeepers. 
or  distillery  warehouse  established  by  law;  and  any  store- 
keeper may  be  transferred     *     *     *     by  the  Commis- 
sioner of  Internal  Revenue,  from  one  warehouse  to  aii-,c4ct   Aug-    15, 
other. 

In  the  original  section  power  was  given  to  supervisors  of 
internal  revenue  to  transfer  storekeepers,  but  those  offices  (super- 
visors) were  abolished  by  the  act  of  August  15,  1876.  (19  Stat., 
143.) 

Transfer  of  storekeepers.     (Sec.  3163,  p.  75.) 

[Sec.  3154a.]  [Sec.  63,  act  of  Aug.  28,  1894  {28  Stat., 
509),  amended  by  act  of  May  13,  1910.     (36  Stat,  369.)] 

That  storekeepers,  storekeeper-gaugers,  and  gaugers,  compensation, 
when  traveling  to  or  from  assignments,  or  when  trans- 
ferred from  one  assignment  to  another,  either  in  the  same 
district  or  hi  different  districts,  shall  receive  the  same 
compensation  per  day  during  the  time  necessarily  occu- 
pied in  traveling  that  they  would  be  entitled  to  if  on  duty 
at  the  place  to  which  assigned  or  transferred,  or  from 
which  relieved,  together  with  actual  and  necessary  trav- 
eling expenses. 

Compensation  and  traveling  expenses  of  storekeepers,  store- 
keeper-gaugers, and  gaugers.     (T.  D.  1632.) 


72  OFFICERS   OF   INTERNAL  REVENUE. 

[Extract  from  the  legislative,  executive,  and  judicial  appropriation  act         the  fiscal 
year  ending  June  30,  1901,  approved  April  1/,  1900  (31  Stat.,  107). j 

Accounts  of  Provided  further,  That  the  Commissioner  of  Internal 
!eUegPeerrS-gaugers; Revenue  is  authorized  to  detail  gaugers,  storekeeper- 
detaiised0rekeepersgaugers,  and  storekeepers,  appomted  in  one  district  tor 
special  or  regular  duty  in  other  districts,  and  the  accounts 
of  gaugers,  storekeeper-gaugers,  and  storekeepers  so  de- 
tailed shall  be  adjusted  and  paid  in  the  district  where 
they  are  appointed  the  same  as  if  assigned  to  regular  duty, 
without  regard  to  the  number  of  districts  in  which  they 
may  have  been  employed  in  any  one  month,  the  same  as 
if  all  their  services  had  been  performed  and  expenses 
incurred  in  the  district  in  which  appointed,  and  the  order 
of  the  Commissioner  of  Internal  Revenue  transferring 
gaugers,  storekeeper-gaugers,  or  storekeepers  to  special 
work  shall  be  accepted  by  the  accounting  officers  of 
the  Treasury  Department  as  full  authority  for  proper 
expenses  incurred  by  said  gaugers,  storekeeper-gaugers, 
or  storekeepers,  while  so  assigned. 
Temporary  gEC#  3155.  In  case  of  the  absence  of  any  internal-reve- 
nue storekeeper  by  reason  of  sickness  or  other  cause,  the 
collector  having  control  of  the  warehouse  may  designate  a 
person  to  have  temporary  charge  thereof,  who  shall,  dur- 
ing such  absence,  perform  the  duties  and  receive  the  pay 
of  "the  storekeeper  for  the  time  he  may  be  so  employed, 
and  shall  for  any  violation  of  the  law  be  subject  to  the 
same  punisliment  as  storekeepers. 

Storekeepers'  duties.     (Sees.  3267,  3271,  3273,  3274,  3287,  3295, 
3301,  3302.) 
Penalties  prescribed  in  case  of  storekeepers.    (Sec.  3300,  p.  199.) 
Concerning  designations  during  temporary  absence  of  store- 
keepers or  storekeeper-gaugers.     (Circular  letter,  Oct.  29,  1895; 
•11  Int.  Rev.  Rec,  445.)     (Regulations  No.  7,  revised, p.  39.) 

Gaugers.  Sec.  3156.  The  Secretary  of  the  Treasury  shall  appoint 

in  every  collection  district  where  they  may  be  necessary, 
one  or  more  internal-revenue  gaugers,  who  shall  each  take 
an  oath  faithfully  to  perform  his  duties,  and  shall  give 
bond,  with  one  or  more  sureties,  satisfactory  to  the  Com- 
missioner of  Internal  Revenue,  for  the  faithful  discharge 
of  the  duties  assigned  to  him  by  law  or  regulations;  and 
the  penal  sum  of  said  bond  shall  not  be  less  than  five 
thousand  dollars,  and  said  bond  shall  be  renewed  or 
strengthened  as  the  Commissioner  of  Internal  Revenue 
may  require.  The  duties  of  every  such  ganger  shall  be 
performed  under  the  supervision  and  direction  of  the  col- 
lector of  the  district  to  which  he  may  be  assigned,  or  of 
the  collector  in  charge  of  exports  at  any  port  of  entry  to 
which  he  may  be  assigned. 

1  'a  bond.     Form  39  revised. 

i  ompromise  of  ranger's  bond.  (Decision  of  Secretary  Sher- 
man, adverse;  23  int.  Rev.  Rec.  (1877),  139.) 

New  bonds  can  not  bo  accepted  from  gangers  so  as  to  release 
old  bondsmen  from  responsibility.    (30  Int.  Rev.  Rec.  (1884), 

The  righl  of  action  on  the  bond  prescribed  by  section  3156  is 
reserved  to  the  Government,  notwithstanding  an  indictment, 


OFFICEKS   OF   INTEENAL  REVENUE.  73 

conviction,  and  sentence  under  section  3169,  unless  there  is  an 
averment  of  satisfaction  of  the  latter.  (United  States  v.  Culler- 
ton,  8  Biss.,  166;  24  Int.  Rev.  Rec,  68.) 

The  offices  of  gauger,  storekeeper,  and  storekeeper-gauger, 
where  the  compensation  does  not  exceed  $3  per  day,  or  shall  not 
exceed  in  the  aggregate  $500  per  annum,  are  not  subject  to  com- 
petitive examination  or  registration,  but  persons  appointed  to 
said  offices  are  subject  to  an  examination  to  be  prescribed  by 
the  Secretary  of  the  Treasury,  and  to  be  taken  before  appoint- 
ment, when  possible.     (Circular  No.  53S,  revised;  21397.) 

For  instructions  as  to  the  duties  of  gaugers,  see  Regulations, 
No.  11,  revised,  Gaugers'  Manual  (1906);  Gaugers'  Weighing 
Manual  (1906);  and  Reg.  No.  7,  revised  (1908). 

[Sec.  3156a.]  [Sec.  65,  act  of  Aug.  28,  1894  C?S  Stat., 
509) .]  That  internal- revenue  gaugers  may  be  assigned  to  Assignment 
duty  at  distilleries,  rectifying  houses,  or  wherever  gauging0  gai 
is  required  to  be  done,  and  transferred  from  one  place  of 
duty  to  another,  by  the  Commissioner  of  Internal  Reve- 
nue, in  like  manner  as  storekeepers  and  storekeepers  and 
gaugers  are  now  assigned  and  transferred. 

Gaugers'  returns.     (Sec.  3291,  p.  181.) 

Penalties  prescribed  in  case  of  gaugers.  (Sees.  3290,  3292, 
p.  181.) 

Gauging  instruments  to  be  prescribed  by  the  Commissioner. 
(Sec.  3249,  p.  149.) 

Transfer  of  gaugers.     (Sec.  3163  amended.) 

Sec.  3 157.  Gaugers  shall  be  entitled  to  receive  such  fees.  Gaugers'  fees. 
to  be  determined  by  the  quantity  gauged,  as  may  be  pre- 
scribed by  the  Commissioner  of  Internal  Revenue;  and 
said  fees,  together  with  their  actual  and  necessary  travel- 
ing expenses,  shall  be  verified  by  their  oaths,  and  shall  be 
paid  by  the  United  States  monthly. 

[Sec.   3157a.]     [Extract  from  the   legislative,   executive, 
and  judicial  appropriation  act,  approved  June  19, 1878  (20 
Stat.,  178).]     *     *     *     And  hereafter  the  compensation ofc°umePsensation 
of  gaugers  shall  not  exceed  five  dollars  per  day  while 
actually  employed. 

Compensation  of  gauger  at  winery.  Sec.  3,  act  of  June  7, 
1906,  page  233. 

[Sec.  31576.]  [Extract  from  legislative,  executive,  and 
judicial  appropriation  act  of  Aug.  15,  1876  (19  Stat.,  14^).] 
*  *  *  gaugers  *  *  *  shall  only  receive  compen- 
sation when  rendering  actual  service. 

[Sec.   3157c]     [Act  of  July   7,   1898   (SO  Stat.,   656).    <***$£?  for 
Extract  from  the  deficiency  appropriation  act,  for  the  fiscal 
year  ending  June  30,  1898.] 

That  gaugers  employed  in  gauging  fruit  brandy,  and 
gaugers  specially  detailed  for  special  duty  under  the  direc- 
tion of  the  Commissioner  of  Internal  Revenue,  may  be 
paid,  at  the  discretion  of  the  Commissioner  of  Internal    compensation. 
Revenue,  either  by  fees  to  be  determined  by  the  quantity 
gauged,  or  by  a  daily  compensation  not  to  exceed  five  sa^ly  n™™1^ 
dollars  per  diem  while  actually  employed;  and  in  cal-cuiated. 
culating  the  daily  compensation  of  all  gaugers  paid  by  fees, 
the  quantity  gauged  for  which  fees  are  paid  may  be  de- 
termined by   dividing  the   aggregate  gallons  of  spirits 


74  OFFICERS   OF   INTERNAL  REVENUE. 

gauged  by  the  number  of  days  on  which  the  gauger  was 
actually  employed  during  the  month. 

Gaugers'  fees,  Circular  No.  205.  Regulations,  No.  2,  revised, 
p.  88.     Gauger's  Manual  (1906). 

See  T.  D.  1632,  May  20,  1910,  as  to  compensation  and  traveling 
expenses. 

False  claims.  (United  States  v  Bittinger,  21  Int.  Rev.  Rec, 
342.) 

Section  3169,  Revised  Statutes  (second  paragraph),  makes  it 
an  offense  for  a  United  States  gauger  to  receive  any  compensa- 
tion except  as  by  law  prescribed  for  the  performance  of  his  duty. 

Rectifiers  are  entitled  to  have  gaugers  do  their  work  promptly 
and  accurately  without  any  other  pay  than  the  pay  received 
from  the  Government.  Violation  of  law  on  the  part  of  a  United 
States  gauger  in  receiving  money  from  rectifiers  for  gauging 
spirits.     (U.  S.  v.  Brunjes,  36  Int.  Rev.  Rec,  47.) 

A  gauger's  pay  being  fixed  by  a  general  regulation,  his  case 
comes  within  the  prohibition  of  section  1765,  and  he  can  not 
receive  pay  for  another  service  rendered  at  the  same  time. 
(Hedrick  v.  United  States,  16  Ct.  Cls.,  88.) 

Unofficial  gauging  for  distillers  and  others  (Reg.  No.  2,  revised, 
p.  92  . 

AN  ACT  Granting  cumulative  annual  leave  of  absence  to  storekeepers, 
gaugers,  and  storekeeper-gangers,  with  pay,  approved  June  23.  1910. 
(36  Stat.,  592.) 

senwave  [Sec.    3157cZ.]     That   storekeepers,    gaugers,    and   store- 

keeper-gangers shall  he,  and  are  hereby,  granted  a  cumulative 
ann  \ial  leave  of  absence,  with  pay,  not  to  exceed  in  the  aggre- 
gate fifteen  days  for  any  one  year:  Provided,  That  said 
leave  of  absence  is  so  computed  as  not  to  exceed  one  and 
one-quarter  days  for  each  twenty-six  days  said  storekeepers, 
gaugers,  and  stonh'tpcr-gaugers  are  actually  assigned  to 
duty:  Provided  further,  That  such  leave  shall  be  operative 
under  such  rules  and  regulations  as  the  Commissioner  of 
Iiittnml  Revenue,  with  tin  approval  of  the  Secretary  of  the 
Treasury,  may  prescrih  . 

[Extract  from  legislative,  executive,  and  judicial  appropriation  act  for  1885,  act  of  July 

7.  1884  (23  Stat.,  172).] 

'V,0,'";  And  no  collector  in  any  district  shall  recommend,  nor 
shall  their  be  appointed  or  commissioned,  more  deputy 
number  em- collectors,  storekeepers,  storekeepers  and  gaugers,  gaug- 
ers, inspectors,  or  other  officers,  or  allowed  to  remain  m 
commissiorj  more  of  any  of  said  officers,  at  any  one  time, 
than  fifteen  per  cenl  in  excess  of  the  number  "engaged  in 
performing  duty  at  the  time,  and  indispensably  necessary 
for  die  performance  of  said  duty, 

abo   legislative,   executive,   and  judicial  appropriation 

for  fiscal  year  ending  June  30,  1886  (act  of  Mar.  3,  1885: 

'I:  Supp.  R.  S..  vol.  1,  p.  484;  Commissioner's  report, 

1 386,  p  l      ' 

m1  ir  No.  310,  limiting  the  number  of  relatives  permitted 
nol  I  po  it  mn  ra  the  Internal-Revenue  Service  in  each  district. 
(33  hit    I,.       Rec.,  101.) 

S158.  Every  internal-revenue  officer,  whose  pay- 
ment charges,  salary,  or  compensation  are  composed, 
wholly  or  in  part,  ..I  Fees,  commissions,  allowances,  or  re- 
wards, from  whatever  source  derived,  shall  be  required  to 


OFFICERS   OF   INTERNAL  REVENUE.  75 

render  to  the  Commissioner  of  Internal  Revenue,  under 
regulations  to  be  approved  by  the  Secretary  of  the  Treas- 
ury,  a  statement   under  oath  setting  forth   the  entire 
amount  of  such  fees,  commissions,  emoluments,  or  rewards 
of  whatever  nature,  or  from  whatever  source  received, 
during  the  time  for  which  said  statement  is  rendered ;  and 
any  false  statement  knowingly  and  willfully  rendered  un- 
der the  requirements  of  this  section,  or  regulations  estab- 
lished in  accordance  therewith,  shall  be  deemed  willful 
perjury,  and  punished  in  the  manner  provided  by  law  for 
the  crime  of  perjury.     And  any  neglect  or  omission  to    ^°altJeb    18 
render  such  statement  when  required  shall  be  punished  1S75.     (is  stat.; 
by  a  fine  of  not  less  than  two  hundred  dollars,  nor  more319-) 
than  five  hundred  dollars,  in  the  discretion  of  the  court. 

Punishment  for  perjury.     (Sec.  125,  Criminal  Code,  appendix' 
p.  414.) 

[Secs.  3159  and  3160.]  [Repealed  by  legislative,  execu- 
tive, and  judicial  appropriation  act  of  Aug.  15,  1876  (19 
Stat.,  14%)-]     Office  of  supervisor  abolished. 

Sec.  3161.  In  any  nort  of  the  United  States  where  there 
is  more  than  one  collector  of  internal  revenue,  the#Secre-<fl]0"i«fe"^n 
tary  of  the  Treasury  may  designate  one  of  them  to  have  tations  and  draw- 
charge  of  all  matters  relating  to  the  exportation  of  articles  backs- 
subject  to  tax  under  the  internal-revenue  laws ;  and  at  any 
port  where  he  may  deem  it  necessary,  there  shall  be 
appointed  by  him  an  officer  to  superintend  all  matters  of 
exportation  and  drawback,  under  the  direction  of  the 
collector.  The  compensation  of  the  officers  last  named 
shall  be  prescribed  by  the  Secretary  of  the  Treasury,  but 
shall  not  exceed,  in  any  case,  an  annual  rate  of  two  thou- 
sand dollars,  excepting  at  New  York,  where  such  compen- 
sation shall  be  at  the  annual  rate  of  three  thousand  dollars. 
At  any  port  where  there  is  no  superintendent  of  exports, 
all  the  duties  and  services  required  of  such  officers  shall 
be  performed  by  the  collector  of  internal  revenue  desig- 
nated to  have  charge  of  exportation.  All  the  books, 
papers,  and  documents  in  the  bureau  of  drawbacks  in  the 
respective  ports,  relating  to  the  drawback  of  taxes  paid 
under  the  internal-revenue  law,  shall  be  delivered  to  the 
collector  of  internal  revenue  in  charge  of  exportation. 

Sec   3162.   Every  collector  of  internal  revenue  and 
every    superintendent    of    exports    and    drawbacks    issuc^erc[°rtenndd_ 
authorized  to  administer  such  oaths  and  to  certify  toents  of  exports 

i  i  i  1    j-Z may     administer 

such  papers  as  may  be  necessary  under  any  regulation  oatns. 
prescribed  under  the  authority  of  the  internal-revenue 
laws. 

See  section  3165  in  regard  to  general  authority  of  collector  to 
administer  oaths. 

Sec.  3163  [as  amended  by  sec.  2,  act  of  Mar.  1,  1879    Duties  of  coi- 
(20  Stat,  327).]  Every  coUector   within   his    collection {^X^J1- 
district  and  every  internal-revenue  agent  shall  see  that  agents. 
all   laws   and   regulations   relating  to   the   collection   of 
internal  taxes  are  faithfully  executed  and  complied  with, 


76  OPPICEES    OF    INTKilXAL  REVENUE. 

and  shall  aid  in  the  prevention,  detection,  and  punish- 
ment ofanyfraudsin  relation  thereto.    And  it  shall  be  the 
duty  of  every   ... Hector  and  of  every  internal-revenue 
in    to    report    to    th<'   Commissioner  in    writing   any 
rlecl    of   duty,    incompetency,    delinquency,   or   mal- 
feasance in  office  of  any  internal-revenue  officer  or  agent 
of  which  he  may  obtain  knowledge,  with  a  statement  of 
all  the  facts  in  each  case,  and  any  evidence  sustaining  the 
same. 
■;;rr     The  Commissioner   may   also  transfer  any  inspector, 
^eauger,  storekeeper,  or  storekeeper  and  gauger,  from  one 
distillery,  or  other  place  of  duty,  or  from  one  collection 
dist  rict ,  t  0  anot  her. 

Duty  of  collector  to  collect  taxes.     (Sec.  3183,  p.  94.) 

Injunction  will  not  lie  against  an  executive  officer  to  pre- 
vent  his  performance  of  ads  directed  by  law.     (Opinion  of 

lii  [tor  of  Treasury  in  the  case  of  Sidenburg&Co.,  27  Int.  Rev. 
Rec  .17.) 

Proper  curse  to  be  pursued  by  a  disbursing  officer  of  the 
United  States  who  is  enjoined  by  a  State  court  from  paying 
money.  (Op.  Atty.  den..  25  Int.  Rev.  Rec,  53;  1G  Op.  Atty. 
Gen.,  257.) 

Courts  will  nol  interfere  by  injunction  with  the  exercise  by 

e  executive  officers  of  duties  requiring  judgment  or  discretion. 
Thompson,  7  Wall.,  347;  Litchfield  v.  Register  and 
i'i\ er,  9  Wall..  575.)    • 

As  to  injunctii  linst  collectors.     (See  under  sec.  3224, 

p.  120;  also  Baffin  u.  Mason,  15  Wall.,  671;  17  Int.  Rev.  Rec, 
l  L8;    16  Op.  Any.  Gen.,  257;   25  Int.  Rev.  Rec.,  53.) 

Trespass  v.  ill  aol  lie  against  a  collector  for  seizure  unless  the 
a<  i  was  tortious  or  unauthorized.  (Averill  v.  Smith,  17  Wall., 
17  Int.  [lev.  Rec,  171.) 

Powers  requiring  judgmenl  and  discretion  conferred  upon 
executive  officers  musl  beexercised  with  reason.  When  clearly 
reasonable  i  be  courts  will  not  interfere  with  officers  acting  under 
discretionary  powers.  When  found  to  be  clearly  unreasonable 
n  h  action  will  be  held  void.  (Woolner  v.  Rennick,  170  Fed. 
Rep  I     D  .  i 

An  officer  or  agenl  of  the  United  States  engaged  in  the  per- 
formance Of  a  duty  arising  under  the  laws  and  authority  of  the 
1  nited  State-  liable  to  a  criminal  prosecution  in  the 

I  a  State  for  acts  dune  by  him  in  his  official  capacity. 
In  re  Waite,8]  Fed.  Rep.,  359  i 

The  collection  by  internal-revenue  officers  of  a  tax  erroneously 

■  pd  does  nol  constitute  a  tort.  (Armour  v.  Roberts,  151 
Fed.  Rep  .  841 

Execution  not   to  issue  againsl  officers  in  ease  of  probable 

Appendix  i 

c.   3163a.]     [Extract  from  legislative,  executive,  and 

hulicial  anwomiation  act,  appmnd  Aug.  15,  1876  {19 

,Stat.,    /■'  The   powers  of  transfer,  and  of 

pension,  oi  officers  conferred  upon  supervisors  by  sec- 

'""'  tion  thirty-one  hundred  and  Bixty-three  of  the  Revised 

are  herebj  vested  in  the  Comniissioner  of 
Internal  Revenue;  and  all  oilier  powers  conferred,  and 
duties  imposed,  by  said  section  upon  supervisors,  are 
hereby  conferred  and  imposed  upon  collectors  of  internal 
revenue  within  their  respective  disl  rids.  In  case  of  the 
i ljxM-vision  [suspension]  of  a  collector,  under  the  power 
hereby  conferred,  the  Commissioner  of  Internal  Revenue 


OFFICERS    OF    INTERNAL,   REVENUE.  77 

shall,  as  soon  thereafter  as  practicable,  report  the  case  to 
the  President  through  the  Secretary  of  the  Treasury  for 
such  action  as  he  may  deem  proper.     *     *     * 

The  powers  and  duties  specified  in  section  3163,  Revised 
Statutes,  as  that  section  was  at  the  time  of  the  above  enactment 
of  August  15,  1876,  are  as  follows: 

"Sec.  3163.  Every  supervisor,  under  the  direction  of  the  Com- 
missioner, shall  see  that  all  laws  and  regulations  relating  to  the 
collection  of  internal  taxes,  are  faithfully  executed  and  com- 
plied with;  and  shall  aid  in  the  prevention,  detection,  and 
punishment  of  any  frauds  in  relation  thereto,  and  examine  into 
the  efficiency  and  conduct  of  all  officers  of  internal  revenue;  and 
for  such  purposes  he  shall  have  power  to  examine  all  persons, 
books,  papers,  accounts,  and  premises,  to  administer  oaths,  and 
to  summon  any  person  to  produce  books  and  papers,  or  to  appear 
and  testify  under  oath  before  him,  and  to  compel  a  compliance 
with  such  summons  in  the  same  manner  as  collectors  may  do. 
He  shall  report  in  writing  to  the  Commissioner  of  Internal 
Revenue  any  neglect  of  duty,  incompetency,  delinquency,  or 
malfeasance  in  office  of  any  internal-revenue  officer  of  which  he 
may  obtain  knowledge,  with  a  statement  of  all  the  facts  in  each 
case,  and  any  evidence  sustaining  the  same.  He  may,  by  notice 
in  writing,  suspend  from  duty  any  inspector,  gatiger,  or  store- 
keeper, and  he  may  suspend  any  collector  for  fraud,  or  gross 
neglect  of  duty,  or  abuse  of  power.  In  case  of  the  suspension 
of  any  inspector,  ganger,  or  storekeeper,  he  shall  immediately 
notify  the  collector  of  the  proper  district  and  the  Commissioner 
of  Internal  Revenue,  and  within  three  days  thereafter  report 
his  action  and  his  reasons  therefor,  in  writing,  to  the  Commis- 
sioner. In  case  of  the  suspension  of  any  collector,  he  shall 
immediately  report  his  action  to  the  Commissioner,  with  his 
reasons  therefor,  in  writing,  and  the  Commissioner,  in  all  cases 
of  suspension,  shall  thereupon  take  such  action  as  he  may  deem 
proper.  Every  supervisor  may  also  transfer  any  inspector, 
ganger,  or  storekeeper  from  one  distillery,  or  other  place  of 
duty,  or  from  one  collection  district,  to  another." 

Suspension  of  collector.     (18  Op.  Atty.  Gen.,  318.) 

Charges  against  subordinate  officers  or  employees  by  collectors 
or  agents.     (T.  D.,  56.) 

The  extent  and  limitation  of  the  authority  of  supervisors  to 
compel  the  production  of  books  and  papers  under  section  3163 
were  discussed  in  the  decision  rendered  by  Judge  Treat,  in  the 
United  States  district  court,  district  of  Missouri,  in  the  case 
wherein  Frederick  Becker  refused  to  obey  the  order  of  Super- 
visor Meyer  to  produce  certain  books  and  papers,  and  wherein 
an  attachment  was  asked  by  the  supervisor  to  compel  obedience 
to  his  subpoena.     (21  Int.  Rev.  Rec,  243.) 

Law  not  unconstitutional  in  giving  these  officers  the  right  to 
examine  books,  etc.   (Stanwood  v.  Green,  11  Int.  Rev.  Rec,  134.) 

The  authority  given  to  the  supervisor  to  enter  without  warrant 
and  examine  the  premises  of  parties  was  valid  as  a  civil  pro- 
ceeding, and  not  in  conflict  with  the  fourth  amendment  to  the 
Constitution,  nor  was  his  authority  to  compel  parties  to  attend 
and  produce  books  and  testify,  in  conflict  with  the  fifth  amend- 
ment to  the  Constitution.  (In  re  Meadow  &  Brothers  (1869), 
10  Int.  Rev.  Rec,  74.  See  also  Perry  v.  Newsome,  10  Int.  Rev. 
Rec,  20;  Stanwood  v.  Fordyce,  13  id.,  77.) 

Sec.  3164.  It  shall  be  the  duty  of  every  collector  of  in- or^10tyreof0cr°tu^: 
ternal  revenue  to  report  within  ten  days  to  the  district  lations  of  law  to 
attorney  of  the  district  in  which  any  fine,  penalty,  or  for- district  attomey- 
feiture  may  be  incurred  for  the  violation  or  any  law  of  the 
United  States  relating  to  the  revenue,  a  statement  of  all 
the  facts  and  circumstances  of  the  case  within  his  knowl- 
edge, together  with  the  names  of  the  witnesses,  and  which 


78  OFFICERS   OF    INTERNAL,  REVENUE. 

may  come  to  his  knowledge  from  time  to  time,  stating  the 
provisions  of  t  he  law  believed  to  be  violated,  and  on  which 
a  reliance  may  be  had  for  condemnation  or  conviction; 
and  if  any  collector  shall  in  any  case  fail  to  report  to  the 
proper  district  attorney  as  prescribed  in  this  section,  his 
right  to  any  compensation,  benefit,  or  allowance  in  such 
case  shall  be  forfeited  to  the  United  States,  and  the  same 
may,  in  the  discretion  of  the  Secretary  of  the  Treasury,  be 
awarded  t  o  such  persons  as  may  make  complaint  and  pros- 
ecute the  same  to  judgment  or  conviction. 

Section  838,  Revised  Statutes,  provides  that  it  is  the  duty  of 
the  district  attorney  to  whom  any  collector  of  internal  revenue 
shall  report  any  case  in  which  any  fine,  penalty,  or  forfeiture  has 
been  incurred  for  violation  of  the  internal-revenue  law,  to  cause 
the  proper  proceedings  to  be  commenced  and  prosecuted  without 
delay,  for  the  fines,  penalties,  and  forfeitures  provided,  unless, 
upon  inquiry  and  examination,  he  shall  decide  that  such  proceed- 
ings <  .m  not  priii  icily  l>c  sustained,  or  that  the  ends  of  public  jus- 
tice do  not  require  that  proceedings  should  he  instituted;  in 
which  ca  e  he  shall  report  the  facts  to  the  Commissioner  of  Inter- 
nal Re\  i  nue  for  his  direction.     (Appendix,  p.  401.) 

Under  the  provisions  of  section  3460,  Revised  Statutes,  page 
363,  when  any  property  (except  real  estate)  seized  by  the  col- 
lector for  violation  of  internal-revenue  laws  does  not  exceed  $500 
in  value  it  should  be  proceeded  against  by  the  collector,  instead 
of  being  reported  to  the  district  attorney,  unless  a  bond  for  costs 
is  given  as  provided.  (See  Regulations,  No.  12.  revised,  p.  25; 
No.  2,  revised,  p.  46.) 

Under  existing  law  collectors  receive  no  allowance  from  casi  s 
to  be  reported  to  United  Slates  attorneys. 

Reports  to  United  States  attorneys  of  violations  of  the  internal- 
revenue  law  should  in  all  cases  give  sufficient  data  to  enable  them 
to  form  an  opinion  as  to  whether  or  not  the  public  interests 
require  prosecution.     (T.  D.  1597.) 

Instructions  to  collectors  and  district  attorneys  relative  to 
prosecution  for  violations  of  internal-revenue  laws.     (T.  D.  1605.) 

United  attorneys  instructed  to  furnish  copies  of  their 

r<  ports  on  Form  I L2  to  the  collectors  of  the  districts  in  all  cases 
where  the  violation  of  law  was  no1  reported  by  the  collector. 
(T.  D.  1443 

Violations  of  law  to  be  promptly  reported.  (T.  D.  176-  Julv 
12,  1900,  *  J 

< iourse  to  be  pursued  by  revenue  a<  I  <   Hectors  in  cases 

of  technical  violations  of  law,  compromises,  etc.     (27  Int    Rev 
Rec.,397.) 

Circular  letter  to  United  States  attorneys  relative  to  unneces- 
T.  1».  133< 
■  be  carefully  examined  before  proceedings  are  insti- 
tuted,    i  Regulations  No.  L2,  p.  26. 1 

Duty  of  collecton  to  look  after  cases  in  suit.     (T.  I).  937.) 

P  ition  nol  commenced  before  Indictment.     ( Virginia  v 

P    il.  I  18  1".  S.,  107.) 


,<S     Si  i    3165  [as  arm  nded  by  sec.  .',  act  of  Mar.  1,  1879  (20 
I     Every  collector,  deputy  collector,  and  in- 


ofli- 

- 

i  tor  i-  authorized  to  administer  oaths  and  to  take  evi- 
dence touching  any  pari  of  the  administration  of  the 
internal-revenue  laws  with  which  he  is  charged,  or  where 
such  oaths  and  evidence  are  authorized  by  law  or  regula- 
tion a  "I  by  law  to  be  taken. 

3162,  | 

appointed   under  the  denatured-alcohol   act   not 
autnaru  i'.  I ».  1 163.) 


OFFICERS    OF    INTERNAL   REVENUE.  79 

Deputy  collectors  have  authority  to  administer  oaths  to 
sureties  on  distiller's  bonds.  (U.  S.  v.  Hardison,  135  Fed.  Rep., 
(1905.)     419.) 

Sec.  183.  Any  officer  or  clerk  of  any  of  the  Departments  law- 
fully detailed  to  investigate  frauds,  or  attempts  to  defraud,  on 
the  Government,  or  any  irregularity  or  misconduct  of  any  offi- 
cer or  agent  of  the  United  States,  shall  have  authority  to  admin- 
ister an  oath  to  any  witness  attending  to  testify  or  depose  in  the 
coiirse  of  such  investigation. 

The  act  imposing  excise  tax  on  corporations,  act  of  August  5, 
1909,  page  325,  authorizes  revenue  agents  in  certain  cases  to 
administer  oaths. 

Sec.  3166.  Airy  officer  of  internal  revenue  may  be  spe-    Revenue    oflv 

xj  \j  jr        cors      nut  tiorizGd 

cially  authorized  by  the  Commissioner  of  Internal  Reve- to  make  seizures. 
nue  to  seize  any  property  which  may  by  law  be  subject  to 
seizure,  and  for  that  purpose  such  officer  shall  have  all  the 
power  conferred  by  law  upon  collectors ;  and  such  special 
authority  shall  be  limited  in  respect  of  time,  place,  and 
kind  and  class  of  property,  as  the  Commissioner  may 
specify:  Provided,  That  no  collector  shall  be  detailed  or 
authorized  to  discharge  any  duty  imposed  by  law  upon 
any  other  collector. 

Seizure  may  be  made  by  any  unofficial  person,  but  at  the  peril 
of  responsibility  in  damages  in  case  the  seizure  is  not  adopted 
by  the  Government  and  the  property  is  not  condemned.  (13 
Op.  Atty.  Gen.,  253.) 

A  seizure  implies  an  actual  caption  of  the  thing  seized.  (17 
Op.  Atty.  Gen.,  82.) 

As  to  seizure  of  stocks  see  Miller  v.  United  States.  (11  Wall., 
268.) 

Where  a  lot  of  ale,  within  the  brewery  in  which  it  was  made, 
was  seized  under  process  emanating  from  a  State  court  as  a  for- 
feiture to  the  State  and  is  in  the  custody  of  the  sheriff  awaiting 
judgment  of  the  court,  possession  of  the  sheriff  can  not  be  legally 
interfered  with  by  internal-revenue  or  other  officers  of  the  United 
States.     (15  Op.  Atty.  Gen.,  370.) 

See  section  3453  in  regard  to  seizures,  page  359. 

Revenue  officers  to  cooperate  with  State  officers  in  the  sup- 
pression of  certain  violations  of  law.  (T.  D.  1327;  Int.  Rev.  Cir- 
cular No.  716.) 

Sec.  3167  [as  amended  by  sec.  34,  act  of  Aug.  28,  1894  Revenue  offi- 
(28  Stat.,  509).]  That  it  shall  be  unlawful  for  any  collector,  operation!'"! 
deputy  collector,  agent,  clerk,  or  other  officer  or  employe  etc^enaur.^5' 
of  the  United  States  to  divulge  or  to  make  known  in  any 
manner  whatever  not  provided  by  law  to  any  person  the 
operations,  style  of  work  or  apparatus  of  any  manufac- 
turer or  producer  visited  by  him  in  the  discharge  of  his 
official  duties,  or  the  amount  or  source  of  income,  profits, 
losses,  expenditures,  or  any  particular  thereof,  set  forth 
or  disclosed  in  any  income  return  by  any  person  or  cor- 
poration, or  to  permit  any  income  return  or  copy  thereof 
or  any  book  containing  any  abstract  or  particulars 
thereof,  to  be  seen  or  examined  by  any  person  except  as 
provided  by  law;  and  it  shall  be  unlawful  for  any  person 
to  print  or  publish  in  any  manner  whatever  not  provided 
by  law,  any  income  return  or  any  part  thereof  or  the 
amount  or  source  of  income,  profits,  losses,  or  expendi- 
tures appearing  in  any  income  return;  and  any  offense 
against  the  foregoing  provision  shall  be  a  misdemeanor 


80  OFFICERS   OF    INTERNAL,   REVENUE. 

and  be  punished  by  a  line  not  exceeding  one  thousand 
dollars  or  by  imprisonment  not  exceeding  one  year,  or 
both,  ai  the  discretion  of  the  court;  and  if  the  offender  be 
an  officer  or  employe  of  the  United  States  he  shall  be  dis- 
missed  from  office  and  be  incapable  thereafter  of  holding 
any  office  under  the  Government. 

This  section  applies  to  revenue  agents.     (Sec.  3152,  p.  67.) 

Furnishing  statistical  information  to  private  persons.  (34 
Int.  I:  .  M7.) 

Circular  letter  of  Augusl  L8,  L897;  information  from  official 
records.     I  13  Int.  Rev.  Rec,  318.) 

Regulations  prohibiting  the  giving  out  by  collectors  of  records 
in  their  offices,  or  copies  thereof,  for  purposes  not  contemplated 
liv  the  internal-revenue  laws.  (Regulations  No.  12,  revised, 
pp.  45,  46;  T.  i>.  L8847,  Jan.  21,  1X98.) 

Circular  No.  :>s:i  (T.  I).  226);  Circular  No.  G51  (T.  D/727). 

Circular  No.  354  (36  Int.  Rev.  Rec,  397).  Collectors  may 
furnish  for  publication  monthly  statements  of  the  aggregate 
receipts  from  Bale  of  stamps  for  tobacco,  snuff,  cigars,  and 
cigarettes,  hut  any  information  that  would  disclose  the  business 
done  by  <>r  the  value  of  stamps  issued  to  any  individual  manu- 
Eacturer  musl  be  withheld.     (T.  I>.  263.) 

Copies  of  Bpecial  tax  returns  can  not  be  furnished  for  use  in 
trial  of  persons  indicted  for  violation  of  State  laws.     (T.  D.  766.) 

Data  from  returns  made  bv  distiller  not  to  be  furnished  for  use 
of  private  litigants.    (T.  D.  224.) 

Instructions  as  to  giving  testimony  in  State  courts:  Revenue 
officers  are  prohibited  from  testifying  in  cases  not  arising  under 
the  laws  of  the  United  States  as  to  facts  that  come  to  their  knowl- 
edge in  their  official  capacity.     (T.  D.  1218.     Aug.  21,  1907.) 

in- true  i  inn-  to  collector  as  to  obeying  subpoena  and  producing 
records.     (34  Int.  Rev.  Rec,  261.)" 

A  collector  of  internal  revenue  refusing  to  testify  or  furnish 
copies  of  official  papers,  acting  under  instructions  from  Depart- 
ment. (Decision  of  Judge  Evans,  United  States  district  court, 
districl  of  Kentucky,  discharging  the  collector;  in  re  David  N. 
Comingore,  collector  ( 1S!M>\  9li  Fed.  Rep.,  552;  T.  D.,  No. 
21584;  Boske  v.  Comingore,  177  V.  S.,  459;  T.  D.  104;  in  re 
Lamberton,  124  Fed.  Rep.,  146;  T.  D.689;  Stegall  v.  Thurman, 
175  Fed.  Rep.,  813,  T.  D.  1616.)    See  section  882,  page  391. 

Collectors  can  Bend,  in  obedience  to  a  subpoena  duces  tenon 
issued  for  the  purpose  of  haying  in  court  certain  documents  or 
records,  any  clerk  who  can  give  the  necessarv  test  imonv.  (T.  D. 
IN 

be°2SLSd  m     Seo-  3168.  Any  totemal-revenue  officer  who  is  or  shall 

cen  .in  manuiao become  interested,  directly  or  indirectly,  in  the  manufac- 
tures;   |«-M..|t  ...  ,•    ,       I  ...  '•  ,"  I  ,  • 

lire  ol  tobacco,  snuff,  or  cigars,  or  in  the  production,  rec- 
,'t  ili'.ii  ion,  or  redisl  illal  ion  of  disi  illed  spirits,  shall  be  dis- 
£J5  'missed  from  office;  and  every  officer  who  becomes  so 

interested  in  any  such  manufacture  or  production,  recti- 
fication, or  redistillation,  or  in  I  be  production  of  fermented 
liquors,  shall  !><■  fined  nol  less  than  five  hundred  dollars 
nor  more  than  five  thousand  dollars. 

'■7. 
i  1789,  pages  412,  as  to  prohibitions  against 
in  rtain  kinds  of  business. 

1  244,  ps  i  certain  business  forbidden  to 

clerks  in  Ttp  i  -ury   I  >ipart  ment. 

circular  No.  r>'i;.  M.1V  :,,  L896;  Government  officer  notauthor- 
■  fill  in  or  date  I. lank  requests  of  disi  illers  for  refuge. 

tuld  he  co,, -trued  as  prohibiting  intemal- 
ieoffi(  ers  from  a<  ting  as  agents  for  distillers  inanvcapacitv 
I  12  Int.  Rev.  p..   .  364.)  r       ' 


OFFICERS    OF    INTERNAL   REVENUE.  81 

Circular  No.  665,  as  to  the  prohibition  of  revenue  officers  acting 
as  agents  for  the  sale  of  books  to  distillers,  brewers,  and  others, 
denounces  the  practice  as  detrimental  to  the  public  service  and 
against  the  interests  of  the  Government.  (T.  D.  831,  Oct.  6, 
1904.) 

Sec.  3169.  Every  officer  or  agent  appointed  and  acting    officers  of  fo- 
under the  authority  of  any  revenue  law  of  the  United  gu™ty  ofreextor^ 

^totoo tion,    receiving 

ULciLtrd  unlawful        fees 

First.  Who  is  guilty  of  any  extortion  or  willful  oppres-and  of  other  of- 

7  i        b£  i    J  J  L  L  feoses. 

sion  under  color  or  law;  or, 

Second.  Who  knowingly  demands  other  or  greater  sums 
than  are  authorized  by  law,  or  receives  any  fee,  compensa- 
tion, or  reward,  except  as  by  law  prescribed,  for  the  per- 
formance of  any  duty;  or, 

Third.  Who  willfully  neglects  to  perform  any  of  the 
duties  enjoined  on  him  by  law;  or, 

Fourth.  Who  conspires  or  colludes  with  any  other  per- 
son to  defraud  the  United  States;  or, 

Fifth.  Who  makes  opportunity  for  any  person  to  de- 
fraud the  United  States;  or, 

Sixth.  Who  does  or  omits  to  do  any  act  with  intent  to 
enable  any  other  person  to  defraud  the  United  States ;  or, 

Seventh.  Who  negligently  or  designedly  permits  any 
violation  of  the  law  by  any  other  person;  or, 

Eighth.  Who  makes  or  signs  any  false  entry  in  any 
book,  or  makes  or  signs  any  false  certificate  or  return,  in 
any  case  where  he  is  by  law  or  regulation  required  to 
make  any  entry,  certificate,  or  return;  or, 

Ninth.  Who,  having  knowledge  or  information  of  the 
violation  of  any  revenue  law  by  any  person,  or  of  fraud 
committed  by  any  person  against  the  United  States  under 
any  revenue  law,  fails  to  report,  in  writing,  such  knowl- 
edge or  information  to  his  next  superior  officer  and  to  the 
Commissioner  of  Internal  Revenue ;  or, 

Tenth.  Who  demands,  or  accepts,  or  attempts  to  col- 
lect, directly  or  indirectly,  as  payment  or  gift,  or  other- 
wise, any  sum  of  money  or  other  thing  of  value  for  the 
compromise,  adjustment,  or  settlement  of  any  charge  or 
complaint  for  any  violation  or  alleged  violation  of  law, 
except  as  expressly  authorized  *by  law  so  to  do,  shall  be 
dismissed  from  office,  and  shall  be  held  to  be  guilty  of  a 
misdemeanor,  and  shall  be  fined  not  less  than  one  thou- 
sand dollars  nor  more  than  five  thousand  dollars,  and  be 
imprisoned  not  less  than  six  months  nor  more  than  three 
years.  The  court  shall  also  render  judgment  against  the 
said  officer  or  agent  for  the  amount  of  damages  sustained 
in  favor  of  the  party  injured,  to  be  collected  by  execution. 
One-half  of  the  fine  so  imposed  shall  be  for  the  use  of  the 
United  States,  and  the  other  half  for  the  use  of  the  in- 
former, who  shall  be  ascertained  by  the  judgment  of  the 
court. 

•     Section  3152  makes  this  section  applicable  to  internal-revenue 
agents. 

72170°— 11 6 


82  OFFICERS   OF   INTERNAL  REVENUE. 

Who  are  officers?  (United  States  v.  Hartwell,  6  Wall.,  385; 
United  States  v.  Germaine,  99  U.  S.,  508;  26  Op.  Atty.  Gen., 
363;  27  ibid.,  219.) 

In  United  States  v.  Mouat  (124  U.  S.,  303,  307),  the  court,  fol- 
lowing the  decision  in  United  States  v.  Germaine  (99  U.  S.,  508), 
said  that  "under  the  Constitution  of  the  United  States  all  its 
officers  were  appointed  by  the  President,  by  and  with  the  con- 
sent of  the  Senate,  or  by  a  court  of  law  or  the  head  of  a  Depart- 
ment "  (members  of  the  Cabinet),  and  that  unless  so  appointed 
they  are  not,  "strictly  speaking,  "  officers  of  the  United  States. 

Congress  may  use  the  word  "officer"  in  a  more  popular  sense 
and  the  courts  in  construing  an  act  of  Congress  must  ascertain 
its  meaning.     (United  States  v.  Hendee.  124  U.  S.,309.) 

It  would  seem  to  be  clear  that  the  recognition  in  a  Federal 
Statute  of  a  person  in  the  public  employ  as  an  officer  of  the  United 
States  constitutes  the  person  such  officer.    26  Op.  Atty.  Gen.,  363. 

Extortion  is  defined  as  "the  unlawful  taking  by  an  officer, 
under  color  of  his  office,  of  any  money  or  thing  of  value  that  is 
not  due  to  him  or  more  than  his  due,  or  before  it  is  due."  (4 
Blacks.  Com.,  141.  See  also  United  States  v.  Deaver,  14  Fed. 
Rep.,  595.) 

Knowingly  demanding  greater  sums  than  are  authorized  by 
law.     (United  States  v.  Highleyman,  22  Int.  Rev.  Rec,  138.) 

United  States  v.  Peter  O.  Brunjes.  Violation  of  law  on  the 
part  of  a  United  States  gauger  in  receiving  money  from  a  recti- 
fier for  gauging  spirits.     (36  Int.  Rev.  Rec,  47.) 

i -piracy.  Officers  who  conspire  with  others  to  defraud  the 
United  States  may  be  prosecuted  under  section  3169  or  section 
5440,  now  section  37  of  the  Criminal  Code  (act  of  Mar.  4,  1909, 
p.  41S).  Section  37  requires  proof  of  some  overt  act  which  is  not 
required  under  section  3169.  (Grunberg  v.  United  States,  145 
Fed.  Rep.,  81.) 

Indictment  of  storekeeper  -  gauger  for  negligently  permit- 
ting a  violation  of  law.  Intent  not  necessarily  an  ingredient. 
(Mason  v.  U.  S.,  162  Fed.  Rep.,  23;  T.  D.,  140S.) 

( Officer  of  the  United  States  guilty  of  extortion.  (Sec.  85,  act 
Mar.   !,  11)0!).  Criminal  Code,  35  Stat.,  1088.) 

Extortion  by  internal-revenue  informers.  (Sec.  145,  act  Mar. 
4,  1909,  p.  417.) 

Bribery.  (Sees.  5451,  5501,  39  and  117,  act  Mar.  4,  1909,  pp. 
416-417.) 

Embezzlement.  (Sees.  86,  87,  89,  90,  91,  93,  94.  Act  Mar.  4, 
S909,  35  Stat.,  loss,  pp.  409-411.) 

Penaii  y  for  failure  to  make  (Sec.  1780;  superseded  bv 

sec.  101,  Criminal  Code,  act  Mar.  4,  1909,  35  Stat,,  1088;  Appen- 
dix, p.  412.) 

Fate  ackno  (Sec.  31,  act  Mar.  4,  1909,  Criminal 

Code,  :;.-,  stat.,  L094.)     . 

ilty  for  making  false  certificate,  etc.     (Sec.  106,  act  Mar. 
4,  1509,  Criminal  Code,  35  Stat.,  1107.) 

No  limitation  -  -  igainst  officers.     (See  "Statute  of  Limi- 

tations,"  \  ppendix,  p.  398.) 

Offic<  i  bidden  to  aid  violators  of  iniemal-revenue  laws  in 
preparing  statement    ••)■  affidavits.    (T.  D.  1607.) 

A',  ofnc<  t  if  internal  revenue,  named  as  such  in  the  indict- 
ment,  ■  in  i       be  jointly  indii  Eor  a  conspiracy,  to  defraud 

there-.,  ith  private  persons.    (United  States  v.  McDonald, 

:;  Dill.,  543;  Fed    I  a     X,-.  15,670.) 

Two  oil  instituting  substantially  one  offense  joined  in 

the  same  indictment;  asepara  ace  rendered  on  the  verdict 

each  count  illegal.  (Ex  parte  .lovee.  l':;  int.  Rev.  Rec,  297; 
i.;  fed.  '..-.,  L175,  :. 

-s     [Si..  .  3169a.]  [Sec.  t.  ad  of  Mar.  /,  1879(20  Stat,  327).} 

.Thai    any  collector  of  internal  revenue,  or  any  deputy 

collector  or  other  employee  of,  or  person  acting  for,  such 


OFFICERS    OF    INTERNAL   REVENUE.  83 

collector,  who  shall  issue  any  stamp  or  stamps  indicating 
the  payment  of  any  internal  revenue  tax,  before  pay- 
ment in  full  therefor  has  been  made  to  the  officer  or  per- 
son issuing  the  same,  shall  be  deemed  guilty  of  a  misde-  Penalty- 
meanor,  and  shall  be  fined  for  each  stamp  thus  issued 
an  amount  equal  to  the  face  value  thereof,  in  addition  to 
the  liability  of  the  collector  on  his  official  bond  on  account 
of  such  stamp;  and  such  collector,  deputy  collector,  or 
employee  shall  be  dismissed  from  office. 

Issuing  stamps  for  distilled  spirits  to  any  other  person  than  as 
provided  by  law.     (See.  3316,  p.  209.) 

Receipt  in  lieu  of  stamp  prohibited.     (Sec.  3183,  p.  94.) 

[Sec.  31696.]     [Sec.  23,  act  of  Feb.  8,  1875  (18  Stat.,if&Sk£gl&£ 
307).]     That  all  acts  and  parts  of  acts  imposing  fines, f^S^*^ 
penalties,  or  other  punishment  for  offenses  committed  officers  to  certain 
13V   an  internal-revenue   officer   or   other   officer   of   the  persons0  as 
Department  of  the  Treasury  of  the  United  States,   or 
under   any   bureau   thereof,   shall   be,    and   are   hereby, 
applied  to  all  persons  whomsoever,  employed,  appointed, 
or  acting  under  the  authority  of  any  internal-revenue  or 
customs  law,  or  any  revenue  provision  of  any  law  of  the 
United   States,    when   such   persons    are    designated    or 
acting  as  officers  or  deputies,  or  persons  having  the  cus- 
tody or  disposition  of  any  public  money. 

Sec.   3170.  Every   district   attorney   or  marshal  who  neyis^rictmarshai 
demands,  or  accepts,  or  attempts  to  collect,  directly  or  accepting  or  de- 

i-         ,i  j  tj  j_i  •  e  manding        any- 

mdirectly,  as  payment  or  gut  or  otherwise,  any  sum  oi  thing    for   com- 
money  or  other  property  of  value  for  the  compromise,  £™™of  ^IZmzi 
adjustment,  or  settlement  of  any  charge  or  complaint  for  revenue  laws. 
any  violation  or  alleged  violation  of  am7-  provision  of  the 
internal-revenue  laws,  except  as  expressly  authorized  by 
law  to  do  so,  shall  be  held  to  be  guilty  of  a  misdemeanor, 
and  shall  be  fined  in  double  the  sum  or  value  of  the 
money  or  property  received  or  demanded,  and  be  impris- 
oned for  not  less  than  one  nor  more  than  ten  years. 

Accepting  illegal  fees,  etc.  (Sec.  18,  act  of  May  28,  1896,  29 
Stat.,  140.) 

Sec.  3171  [,  as  amended  by  sec.  2,  act  of  Mar.  1,  1879  (20ing  u^rriesSUmay 
Stat.,  327).]  If  any  officer  appointed  under  and  by  Virtue  Jggggg  suit  for 
of  any  act  to  provide  internal  revenue,  or  any  person 
acting  under  or  by  authority  of  any  such  officer,  shall 
receive  any  injury  to  his  person  or  property,  in  the  dis- 
charge of  his  duty,  under  any  law  of  the  United  States  for 
the  collection  of  taxes,  he  shall  be  entitled  to  maintain 
suit  for  damage  therefor,  in  the  circuit  court  of  the 
United  States,  in  the  district  wherein  the  party  doing 
the  injury  may  reside  or  shall  be  found. 

U.  S.  v.  Patrick,  54  Fed.  Rep.,  338. 

Penalties  for  obstructing  officers.  (Sees.  3177,  p.  90;  3276, 
p.  170;  sees.  65  and  140,  Criminal  Code,  act  Mar.  4,  1909,  35 
Stat.,  1088,  pp.  415,  416.) 

For  rescuing  prisoners  or  property.  (Sec.  3177,  p.  90;  sees. 
71  and  143,  act  Mar.  4,  1909,  p.  415.) 


84  OFFICERS   OF   INTERNAL  REVENUE. 

Conspiracy  to  prevent  persons  from  accepting  office.  (Sec. 
5518;  sec.  21,  act  Mar.  4,  1909,  p.  417.) 

Penalty  for  falsely  assuming  to  be  an  officer.  (Sec.  5448,  act  of 
Apr.  18,  1884;  reproduced  in  sec.  32,  Criminal  Code,  act  Mar.  4, 
1909;  35  Stat.,  1088,  p.  416.) 

Reimbursement  for  m,edical  attendance,  surgeon's  and  hos- 
pital bills  made  necessary  by  injuries  received  in  line  of  duty, 
and  for  horses  crippled  or  killed.  (Act  June  17,  1910,  36  Stat., 
494,  p.  54.) 


Chapter  Two. 


OF  ASSESSMENTS  AND  COLLECTIONS. 


3177. 


3178. 


3181 
3182 


Sec. 

3172.  Canvass  of  districts  for  objects  of 

taxation. 
3173  (amended).  Returns  of  persons  liable 

to  tax. 

3174.  Summons. 

3175.  Failure  to  obey  summons;  proceed- 

ings. 
3176  (amended).  When  collector  may  en- 
ter premises  and  make  returns. 
One  hundred  per  cent  penalty; 
50  per  cent  penalty. 

Officers  may  enter  premises  where 
taxable  articles  are  kept.  Ob- 
structing officers;  penalty. 

(Obsolete.) 

3179.  Making  false  returns,  or  failing  to 

obey  summons;  penalty. 

3180.  Taxable  property  owned  by  non- 

residents. 
Lists  or  returns. 

Commissioner  to  make  assessments ; 
correction  of  incomplete  or  imper- 
fect lists  within  15  months. 

3183  (amended).  Duty  of  collectors  to  col- 
lect taxes;  not  to  issue  receipts 
in  lieu  of  stamps. 

[3183a]  (act  of  August  28,  1894).  Receipts 
to  be  given  upon  payment  of  tax ; 
separate  receipts  to  be  given  in 
certain  cases. 

3184.  Notice  and  demand  of  taxes. 

3185.  Returns;  when  tax  payable;  5  per 

cent  penalty  and  interest. 
318G  (amended).  Lien  for  taxes. 

3187.  Distraint, 

3188.  Mode  of  levying  distraint. 

3189.  Delinquents  must  exhibit  evidence 

relating  to  property  distrained. 

3190.  Proceedings  on  distraint. 

3191.  When  property  sold  under  distraint 
is  subject  to  tax,  and  tax  not  paid. 

When  property  sold  under  distraint 

may   be    purchased    for    United 

States,  etc. 
Property  distrained  to  be  restored 

on  payment  before  sale. 
Effect  of  certificate  of  sale. 
When   property   distrained    is   not 

divisible. 
When  real  estate  may  be  sold  to 

satisfy  taxes, 
(amended).  Proceedings  for  seizure 

and  sale  of  real  estate. 
[3197a.]  Regulating  the  manner  in  which 

personal  or  real  property  may  be 

sold  under  orders  and  decrees  of 

sale. 

3198.  Certificate  of  purchase;  deed. 

3199.  Collector's  deed  prima  facie  evi- 
dence, etc. 

Collector  may  seize  lands  of  delin- 
quent in  any  district  of  same 
State. 


3192. 


3193. 

3194. 
3195. 

3196. 

319^ 


3200. 


Sec. 

3201.  Redemption  prior  to  sale. 

3202.  Redemption  after  sale. 
3203  (amended).  Record  of  sales. 

3204.  Redemptions  to  be  entered  on  rec- 

ord. 

3205.  Successive  seizures  may  be  made, 

when. 

3206.  Fees  and  charges  in  seizure  cases. 

3207.  Proceedings  in  chancery  to  subject 

real  estate  to  payment  of  tax. 
3208  (amended).  Commissioner  to  have 
charge   of   real   estate   acquired 
under  internal-revenue  laws. 

3209.  When  list  to  be  sent  to  district 

where  the  party  taxed  resides  or 
has  property. 

3210.  Collections  to  be  paid  into  Treasury 

daily. 

3211.  Depositories. 

Act  of  March  2,    1911.     Certified 
checks  receivable  for  taxes. 

3212.  Collectors'  monthly  statement;  ac- 

counts. 

3213.  Suits  for  fines,    penalties,    forfeit- 

mes,  and  taxes. 

3214.  Suits    for   taxes,    etc.,    not    to   be 

brought  without  sanction  of  Com- 
missioner. 

3215.  Regulations  for  government  of  dis- 

trict attorneys,  marshals,  etc 

3216.  Moneys  recovered  to  be  paid  to  col- 

lectors. 

3217.  Delinquent  collectors;  proceedings 

by  distraint. 

3218.  Collectors  to  be  charged  with  what; 

due  diligence. 

3219.  Death,    etc.,    of    collector;    uncol- 

lected balances. 

3220.  Remission  and  refunding  of  taxes, 

penalties,  etc. 

3221  (amended).  Taxes  on  spirits  acci- 
dentally destroyed. 

3222.  Retrospective  effect  of  preceding- 
section. 

3223  (amended).  When  tax  on  lost  spirits 
is  indemnified  by  insurance. 

3224.  Suits  to  restrain  assessment  or  col- 

lection of  taxes  prohibited. 

3225.  Suits  to  recover  taxes  collected  un- 

der second  assessment;  burden  of 
proof  as  to  fraud,  etc. 

3226.  Suits  for  recovery  of  taxes  wrong- 

fully collected. 

3227.  Limitation  of  suits  for  recovery  of 

taxes  wrongfully  collected . 

3228.  Claims  for  refunding;  limitation. 

3229.  Compromises. 

3230.  Discontinuances  of  certain  prosecu- 

tions. 

3231.  Continuances  of  cases. 


85 


gg  ASSESSMENTS   AND   COLLECTIONS. 

canvass  of  dis-  gEC  3172  [as  amended  by  sec.  34,  act  of  Aug.  28,  1894 
*&&  J  (28  Stat.,  509)}.  Every  collector  shall,  from  time  to 
time,  cause  his  deputies  to  proceed  through  every  part 
of  his  district  and  inquire  after  and  concerning  all  persons 
therein  who  are  liable  to  pay  any  internal  revenue  tax,  and 
all  persons  owning  or  having  the  care  and  management  of 
any  objects  liable  to  pay  any  tax,  and  to  make  a  list  of 
such  persons  and  enumerate  said  objects. 

The  list  referred  to  should  be  on  Form  24  and  should  contain 
nothing  but  taxes  which  should  be  reported  for  assessment. 
The  report  of  the  deputy  should  be  made  so  as  to  reach  the  col- 
lector on  or  before  the  5th  day  of  the  month  succeeding  that  for 
which  the  report  is  made. — Regulations  No.  1,  revised,  page  9. 

Instructions  to  collectors  with  reference  to  special-tax  returns, 
Circular  No.  561,  June  18,  1907;  T.  D.  92. 

For  methods  employed  in  ascertaining  names  of  persons 
liable  to  pay  special  taxes  as  rectifiers,  wholesale  liquor  dealers, 
and  retail  liquor  dealers,  see  22  Int.  Rev.  Rec,  109;  24  ibid., 
241;  26  ibid.,  193;  29  ibid.,  409. 

Sec.  3173  [as  amended  by  sec.  34,  act  of  Aug.  28,  1894 
{28  Stat.,  509)].  That  it  shall  be  the  duty  of  any  person, 
partnership,  firm,  association,  or  corporation,  made 
liable  to  any  duty,  special  tax,  or  other  tax  imposed  by 
law,  when  not  otherwise  provided  for,  in  case  of  a  special 

otAhnenrllretumsdtax>  on  OI*  Def°re  the  thirty-first  day  of  July  in  each 
when  to  be  made! year,  (in  case  of  income  tax  on  or  before  the  first  Monday 
s^pf  *•  Rof  March  in  each  year),  and  in  other  cases  before  the  day 
on  which  the  taxes  accrue,  to  make  a  list  or  return,  veri- 
fied by  oath  or  affirmation,  to  the  collector  or  a  deputy 
collector  of  the  district  where  located,  of  the  articles  or 
object-,  including  the  amount  of  annual  income,  charged 
with  a  duty  or  tax,  the  quantity  of  goods,  wares,  and 
merchandise  made  or  sold,  and  charged  with  a  tax,  the 
several  rates  and  aggregate  amount,  according  to  the 
forms  and  regulations  to  be  prescribed  by  the  Commis- 
sioner  of  Internal  Revenue,  with  the  approval  of  the  Sec- 
!<•!  ary  of  the  Treasury,  for  which  such  person,  partnership, 
firm,  association,  or  corporation  is  liable:  Provided,  That 
if  any  person  liable  to  pay  any  duty  or  tax,  or  owning, 
possessmg,  or  having  the  care  or  management  of  property, 
goods,  wares,  and  merchandise,  articles  or  objects  liable  to 
pay  any  duty,  tax,  or  license,  shall  fail  to  make  and  exhibit 
,i  li-t  or  return  required  by  law,  but  shall  consent  to  dis- 
close the  particulars  of  any  and  all  the  property,  goods, 
wares,  and  merchandise,  articles  and  objects  liable  to  pay 
any  <\<\>y  or  tax,  or  any  business  or  occupation  liable  to 
pay  any  tax  as  aforesaid,  then,  and  in  that  case,  it  shall 
be  the  duty  of  the  collector  or  deputy  collector  to  make 
or  return,  which,  being  <  I  istinctly  read,  consented 
to,  and  signed  and  verified  by  oath  or  affirmation  by  the 
person  30  owning,  possessing,  or  having  the  care  and 
management  as  aforesaid,  may  be  received  as  the  list  of 
such  person:  Provided  further,  Thai  in  case  no  annual 
lisl  or  return  has  been  rendered  by  such  person  to  the 
collector  or  deputy  collector  as  required  by  law,  and  the 


ASSESSMENTS   AND    COLLECTIONS.  87 

person  shall  be  absent  from  his  or  her  residence  or  place 
of  business  at  the  time  the  collector  or  a  deputy  collector  ^ITabseiL m 
shall  call  for  the  annual  list  or  return,  it  shall  be  the  duty 
of  such  collector  or  deputy  collector  to  leave  at  such 
place  of  residence  or  business,  with  some  one  of  suitable 
age  and  discretion,  if  such  be  present,  otherwise  to  deposit 
in  the  nearest  post-office  a  note  or  memorandum  addressed 
to  such  person,  requiring  him  or  her  to  render  to  such  col- 
lector or  deputy  collector  the  list  or  return  required  by 
law,  within  ten  days  from  the  date  of  such  note  or  memo- 
randum, verified  by  oath  or  affirmation.     And  if  any  per-  nSjf^ Lw™fau£ 

,'    .  ±-r*     i  •       i  c  •  i     i      n        e         or  ol  making  false 

son  on  being  notified  or  required  as  aforesaid  shall  refuse  returns. 
or  neglect  to  render  such  list  or  return  within  the  time 
required  as  aforesaid,  or  whenever  any  person  who  is  re- 
quired to  deliver  a  monthly  or  other  return  of  objects 
subject  to  tax  fails  to  do  so  at  the  time  required,  or  de- 
livers any  return  which,  in  the  opinion  of  the  collector,  is 
false  or  fraudulent,  or  contains  any  undervaluation  or 
understatement,  it  shall  be  lawful  for  the  collector  to    summons     to 

,  .  ,  .  produce    books 

summon  such  person,  or  an}"  other  person  having  posses- and  testify. 
sion,  custody,  or  care  of  books  of  account  containing  en- 
tries relating  to  the  business  of  such  person,  or  any  other 
person  he  may  deem  proper,  to  appear  before  him  and 
produce  such  books,  at  a  time  and  place  named  in  the 
summons,  and  to  give  testimony  or  answer  interroga- 
tories, under  oath,  respecting  any  objects  liable  to  tax  or 
the  returns  thereof.  The  collector  may  summon  any 
person  residing  or  found  within  the  State  in  which  his 
district  lies;  and  when  the  person  intended  to  be  sum- 
moned does  not  reside  and  can  not  be  found  within  such 
State,  he  may  enter  any  collection  district  where  such 
person  may  be  found,  and  there  make  the  examination 
herein  authorized.  And  to  this  end  he  may  there  exer- 
cise all  the  authority  which  he  might  lawfully  exercise  in 
the  district  for  which  he  was  commissioned. 

The  words,  "in  case  of  income  tax  on  or  before  the  first  Mon- 
day of  March  in  each  year,"  have  no  application  at  present,  as 
they  relate  to  the  income  tax  which  was  imposed  by  the  act  of 
August  28,  1894,  and  declared  unconstitutional.     See  page  26. 

Returns  of  taxes  assessable  under  internal-revenue  laws  to  be 
made  in  duplicate.  (Cir.  No.  140,  Int.  Rev.  No.  548;  T.  D. 
21801,  1899.) 

The  returns  (Form  11,  revised)  of  special  taxpayers  must  be 
made  under  oath  or  affirmation,  whether  covering  the  whole  year 
or  a  fractional  part  of  the  year.  (26  Int.  Rev.  Rec,  89;  Ibid., 
69.) 

A  person  intending  to  engage  in  business  for  which  special  tax 
is  required  must  himself  sign  and  swear  to  the  return  (Form  11). 
The  return  will  not  be  accepted  when  signed  and  sworn  to  by 
some  other  person  as  "agent."     (T.  D.  49,  Feb.  27,  1900.) 

The  return  authorized  to  be  made  by  the  collector  or  deputy 
refers  to  the  return  on  the  prescribed  form.  (Reg.  No.  1  revised, 
p.  99.) 

Return  on  Form  11  in  the  case  of  an  unincorporated  club, 
association,  or  copartnership  may  be  signed  and  verified  by  a 
responsible  or  managing  officer  or  member  of  the  firm.  (T.  D. 
1552.) 


88  ASSESSMENTS  AND   COLLECTIONS. 

A  written  request  by  a  person  liable  to  a  special  tax  for  infor- 
mation concerning  such  tax  is  not  a  disclosure  of  the  particulars 
within  the  meaning  of  this  section.     (VI  Comp.  Dec,  760.) 

Request  for  prescribed  blanks  for  making  return  is  a  disclosure. 
(VIII  Comp.  Dec,  663.) 

This  section  clothes  collectors  of  internal  revenue  with  super- 
visory power  over  and  authorizes  them  to  investigate  all  ac- 
counts, lists,  or  returns  made  or  required  to  be  made  to  them 
by  any  and  all  classes  of  persons  liable  to  pay  taxes  upon  any 
property,  trade,  or  business.  (United  States  v.  Hodson,  14  Int. 
Rev.  Rec,  100.) 

The  collector  is  not  authorized  to  require  the  production  of 
the  hooks  of  a  corporation  in  which  the  taxpayer  is  a  share- 
holder, such  books  in  the  meaning  of  that  provision  not  being 
books  relating  to  the  trade  or  business  of  the  shareholder.  (Lee, 
assessor,  v.  Chadwick,  11  Int.  Rev.  Rec,  133;  1  Lowell,  439.) 

After  the  right  of  assessment  has  been  lost  a  collector  has  no 
legal  authority  to  require  the  production  of  a  person's  private 
books  and  papers  for  the  purpose  of  ascertaining  his  liability  to 
tax.  i  In  the  matter  of  O.  H.  P.  Archer,  24  Int.  Rev.  Rec,  110; 
9  Bon.,  127.) 

It  was  held  that  it  is  no  defense  that  the  answers  of  the  person 
summoned  would  tend  to  criminate  him.  (In re  Phillips,  10  Int. 
Rev.  Rec,  107.) 

The  examination  of  books  under  this  section  is  not  an  infringe- 
ment of  the  Constitution.  (In  re  Strouse,  11  Int.  Rev.  Rec,  182; 
1  Sawyer,  605.) 

Summons  to  produce  books  and  attachment  by  court  for  re-, 
fusal.     (  Lippman's  case,  3  Ben.,  95;  9  Int.  Rev.  Rec,  1;  Land- 
nun  v.  United   States,  16  Ct.  Cls.,  74,  85;  in  re  Brown,  3  Int. 
Rev.  Rec,  L34;  in  re  Kearns,  64  Fed.  Rep.,  481.) 

Meaning  of  the  words  ••objects  charged  with  internal-revenue 
tax."  ( Wells,  Fargo  and  Co.  v.  Shook,  8  Blatch.,  254;  Fed.  Cas. 
No.  17106;  in  re  Kinney,  102  Fed.  Rep.,  468.) 

The  decision  in  Boyd  v.  The  United  States  (116  U.  S.,  617; 
32  Int.  Rev.  Rec,  62)  was,  in  effect,  that  a  compulsory  produc- 
tion of  a  man's  private  papers,  to  be  used  as  evidence  against  him 
in  a  proceeding  to  forfeit  his  property  for  alleged  fraud  against  the 
revenue  laws,  is  an  "unreasonable  search  and  seizure"  within 
the  meaning  of  the  fourth  amendment  of  the  Constitution. 

That  decision  relates  to  criminal  proceedings,  and  does  not 
apply  to  proceedings  to  recover  taxes. 

acl   of  June  22,    1874,  relative  to  production  of  books, 
papi  rs,  etc,  to  suits  other  than  criminal,  page  390,  Appendix. 

aMpl"  3eo.  3174.  Such  summons  shall  in  all  cases  be  served 

'  by  a  deputy  collector  of  the  district  where  the  person  to 
whom  it  is  directed  may  be  found,  by  an  attested  copy 
delivered  to  such  person  in  hand,  or  left  at  his  last  and 
usual  place  of  abode,  allowing  such  person  one  day  for 
each  twenty-five  miles  he  may  be  required  to  travel, 
computed  from  the  place  of  service  to  the  place  of  exami- 
oation;  and  the  certificate  of  service  signed  by  such 
deputy  shall  be  evidence  of  the  facts  it  states  on  the  hear- 
ing of  an  applical  ion  Tor  an  attachment.  V\\wn  the  sum- 
mons requires  the  production  of  hooks,  it  shall  be  suffi- 
cient if  guch  books  are  described  with  reasonable  cer- 
I  aim y. 

In  re  Becker,  Fed.  <  as.,  No.  1208.    (21  Int.  Rev.  Rec,  243.) 

3175.  Whenever  any  person  summoned  under  the 
two  preceding  sections  neglects  or  refuses  to  obey  such 
summons,  or  to  give  testimony,  or  to  answer  interroga- 


ASSESSMENTS   AND    COLLECTIONS.  89 

tories  as  required,  the  collectors  may  apply  to  the  judge 
of  the  district  court  or  to  a  commissioner  of  the  circuit 
court  of  the  United  States  for  the  district  within  which 
the  person  so  summoned  resides  for  an  attachment 
against  him  as  for  a  contempt.  It  shall  be  the  duty  of 
the  judge  or  commissioner  to  hear  the  application,  and, 
if  satisfactory  proof  is  made,  to  issue  an  attachment, 
directed  to  some  proper  officer,  for  the  arrest  of  such, 
person,  and  upon  Ms  being  brought  before  him  to  pro- 
ceed to  a  hearing  of  the  case;  and  upon  such  hearing  the 
judge  or  commissioner  shall  have  power  to  make  such 
order  as  he  shall  deem  proper  not  inconsistent  with 
existing  laws  for  the  punishment  of  contempts,  to  enforce 
obedience  to  the  requirements  of  the  summons  and  to 
punish  such  person  for  his  default  or  disobedience. 

Penalty  for  failure  to  obey  summons.     (Sec.  3179,  p.  91.) 
The  judge  may  issue  a  rule  to  show  cause  why  an  attachment 
should  not  issue.     The  application  of  the  collector  in  these  cases 
is  a  proceeding  in  a  civil  cause,  and  may  be  amended.     (Lee, 
assessor,  r.  Chadwick,  11  Int.  Rev.  Rec,  133.) 

In  the  matter  of  Oliver  H.  P.  Archer,  Judge  Blatchford  denied 
a  collector's  application  for  a  writ  of  attachment,  as  the  com- 
missioner was  barred  by  the  15  months'  limitation  in  section 
3182  from  assessing.     (24  Int.  Rev.  Rec,  110;  9  Ben.,  427.) 

Sec.  3176  [as  amended  hy  sec.  84,  act  of  Aug.  28,  1894  wS£cn*e£ffi 
(28  Stat.,  509)].  When  any  person,  corporation,  com-  is made. 
pany,  or  association  refuses  or  neglects  to  render  any 
return  or  list  required  by  law,  or  renders  a  false  or  fraudu- 
lent return  or  list,  the  collector  or  any  deputy  collector 
shall  make,  according  to  the  best  information  winch  he 
can  obtain,  including  that  derived  from  the  evidence 
elicited  by  the  examination  of  the  collector,  and  on  his 
own  view  and  information,  such  list  or  return,  according 
to  the  form  prescribed,  of  the  income,  property,  and 
objects  liable  to  tax  owned  or  possesed  or  under  the  care 
or  management  of  such  person,  or  corporation,  company, 
or  association  and  the  Commissioner  of  Internal  Revenue 
shall  assess  all  taxes  not  paid  by  stamps,  including  the 
amount,  if  any,  due  for  special  tax,  income  or  other  tax, 
and  in  case  of  any  return  of  a  false  or  fraudulent  list  or 
valuation  intentionally  he  shall  add  one  hundred  per  cen-per  cent  penalty. 
turn  to  such  tax;  and  in  case  of  a  refusal  or  neglect,  except 
in  cases  of  sickness  or  absence,  to  make  a  list  or  return, 
or  to  verify  the  same  as  aforesaid,  he  shall  add  fifty  per  penalty, 
centum  to  such  tax.  In  case  of  neglect  occasioned  by 
sickness  or  absence  as  aforesaid  the  collector  may  allow 
such  further  time  for  making  and  delivering  such  list  or 
return  as  he  may  deem  necessary,  not  exceeding  thirty 
days.  The  amount  so  added  to  the  tax  shall  be  collected  Coflectfbie.s'T 
at  the  same  time  and  hi  the  same  manner  as  the  tax  unless 
the  neglect  or  falsity  is  discovered  after  the  tax  has  been 
paid,  in  which  case  the  amount  so  added  shall  be  collected 
in  the  same  manner  as  the  tax;  and  the  list  or  return  so 
made  and  subscribed  by  such  collector  or  deputy  collector 


90  ASSESSMENTS    AXD    COLLECTIONS. 

shall  be  held  prima  facie  good  and  sufficient  for  all  legal 
purposes. 

The  100  per  centum  to  be  added  to  the  tax  to  be  assessed  applies 
to  that  tax  not  disclosed  by  the  taxpayer  in  his  return.  (Cir. 
543,  Aug.  12,  1899.     T.  D.  No.  21517.) 

No  penalty  accrues  where  parties  consent  to  disclose  their 
liability  to  special  tax  within  the  calendar. month.  (T.  D.  239, 
Nov.  3,  1900;  6  Comp.  Dec,  68G.) 

The  absence  contemplated  by  section  3176  as  relieving  a 
special-tax  payer  from  the  50  per  cent  additional  is  temporary, 
not  continuous,  absence.     (T.  D.  891,  Apr.  22,  1905.) 

See  Circular  701,  T.  D.  1181,  June  17,  1907,  for  table  of  50  per 
cent  penalties  where  fractions  of  a  cent  are  involved,  p.  36. 

If  a  person  is  sick  or  absent  during  the  whole  calendar  month 
in  which  he  commences  or  continues  business,  or  that  part 
thereof  elapsing  from  the  time  he  commences  business  to  the 
end  of  the  month,  he  may  make  his  return  (Form  11)  at  any  time 
within  30  days  alter  the  close  of  such  month  without  incurring 
the  50  per  cent  penalty,  provided  the  collector,  after  being 
satisfied  of  such  continued  sickness  or  absence,  excuses  him  from 
making  the  return  for  such  period  as  is  necessary,  not  exceeding 
30  days.     (Reg.  No.  1  revised,  p.  99.) 

As  to  the  term  "false,''  meaning  willfully  false  (German  Sav- 
ings Bank  v.  Archbold,  15  Blatch.,  398,  24  Int.  Rev.  Rec,  414); 
Supreme  Court  Decision  (28  Int.  Rev.  Rec,  175;  104  U.  S.  (14 
Otto),  70S).  The  court  did  not  hold  that  the  return  must  be 
willfully  false,  but  intimated  that  such  would  have  been  its 
decision  if  it  had  been  necessary  to  pass  upon  the  question  in  the 
case  decided. 

As  to  100  per  cent  penal  duty.     (11  Op.  Atty.  Gen.,  280.) 

In  cas.'  of  neglect  or  refusal  to  make  returns,  in  case  of  false 
or  fraudulent  ones,  and  in  case  of  returns  in  which  there  is  any 
omission  or  understatement,  collectors  will  proceed  as  provided 
in  section  3176.     (34  Int.  Rev.  Rec,  93.) 

The  act  which  imposes  an  addition  of  100  per  cent  to  the  tax 
as  a  penalty  for  the  "return  of  a  false  or  fraudulent  list  or  valua- 
tion" is  constitutional.     (Doll  v.  Evans,  15  Int.  Rev.  Rec,  143.) 

As  to  authority  of  Secretary  to  remit  the  50  per  cent  addition. 
(17  Op.  Atty.  Ccn.,  433;  2:5  ibid.,  398.) 

Concerning  assessable  penalties  of  50  per  cent  and  100  per 
cent.  (Circular  No.  543,  Aug.  12,  1899;  T.  D.  21517  and  T.  D. 
21536,   L899.) 

Reporting  delinquent  special-tax  payers  for  assessment,  (See 
note  under  Sec.  3238,  p.  128.) 

(nurse  to  be  pursued  by  collectors  where  no  return  is  filed. 
(T.  I).  1560.) 

en?ei?ccirpr'n,i>1s     Sec-  3177:  a".v  collector,  deputy  collector,  or  inspector 
where  taxable  ar- may  cuter,  in  the  daytime,  any  building  or  place  where 

tides  are  kept.  .  •    i  i   •       ,  *        ,   ■       ,    r  l  ,  '  ,  , 

any  articles  or  objects  subject  to  tax  are  made,  produced, 
or  kept,  within  his  district,  so  far  as  it  may  be  necessary 
for  llu1  purpose  of  examining  said  articles  or  objects.  And 
any  owner  of  such  building  or  place,  or  person  having  the 
agency  or  superintendence  of  the  same,  who  refuses  to 
admil  such  officer,  or  to  suffer  him  to  examine  such  article 
or  articles,  shall,  for  every  such  refusal,  forfeit  five  hun- 
dred dollars.  And  w  hen  such  premises  are  open  at  night , 
such  officers  may  enter  them  while  so  open,  in  the  per- 
^^g^'formance  of  their  official  duties.  And  if  any  person  shall 
q-  forcibly  obst  rucl  or  hinder  any  collector,  dupt  y  collector, 
or  inspector,  in  the  execution  of  any  power  and  authority 
vested  in  him  by  law,  or  shall  forcibly  rescue  or  cause  to 


ASSESSMENTS   AND    COLLECTIONS.  91 

be  rescued  any  property,  articles,  or  objects  after  the 
same  shall  have  been  seized  by  him,  or  shall  attempt  or 
endeavor  so  to  do,  the  person  so  offending,  excepting  in 
cases  otherwise  provided  for,  shall,  for  every  such  offense, 
forfeit  and  pay  the  sum  of  five  hundred  dollars,  or  double 
the  value  of  the  property  so  rescued,  or  be  imprisoned  for 
a  term  not  exceeding  two  years,  at  the  discretion  of  the 
court. 

This  section  is  made  applicable  to  revenue  agents  by  section 
3152  as  amended  (p.  67). 

Seized  property  irrepleviable.     (Sec.  934,  p.  399.) 

Whosoever  shall  forcibly  assault,  resist,  or  interfere  with  any 
officer  of  internal  revenue,  or  his  deputy,  or  any  person  assisting 
him  in  his  duties,  or  shall  rescue,  or  attempt  to  rescue,  or  cause 
to  be  rescued,  property  seized,  is  liable  to  a  fine  of  not  more  than 
$2,000,  or  imprisonment,  or  both.  (Sec.  65,  Criminal  Code, 
Appendix,  p.  415.) 

Distiller  or  person  in  his  employ  obstructing  officer.  (Sec. 
3276,  p.  170.)  Wholesale  liquor  dealer  or  rectifier  hindering 
revenue  officer  from  examining  book.     (Sec.  3318,  p.  211.) 

Search  wan-ants.     (Sec.  3462,  p.  365.) 

The  right  conferred  by  section  3177  is  limited  to  the  purpose 
described.  (United  States  v.  Mann,  95  U.  S.  (5  Otto),  580;  24 
Int.  Rev.  Rec,  20.) 

Officers  must  have  free  and  peaceable  egress  as  well  as  ingress 
to  the  places  where  they  are  authorized  to  make  examination, 
and  the  proprietors  have  no  right  to  eject  them.  (United  States 
v.  Mosely,  15  Int.  Rev.  Rec,  8.) 

The  authority  of  such  officers  to  make  examinations  can  not 
be  delegated  to  their  clerks.  (United  States  v.  Rhawn,  22  Int. 
Rev.  Rec,  235.) 

Indictments  under  this  section.  (United  States  v.  Ford,  34 
Fed.  Rep.,  26.) 

United  States  v.  Fears  (3  Woods,  510;  Fed.  Cas.  No.  15080). 
(Indictment  defective  in  not  showing  the  authority  under  which 
the  officer  was  acting.) 

Sec.  3178  [requires  returns  to  show  whether  amounts  are 
valued  in  coin  or  currency.] 

Although  the  provision  is  not  expressly  repealed,  it  has  been 
obsolete  since  the  resumption  of  specie  payments,  January  1. 
1879. 

Sec.  3179.  Whenever  any  person  delivers  or  discloses    Making     false 
to  the  collector  or  deputy  any  false  or  fraudulent  list ,,  \t&™s  °t0  "obey 
return,  account,  or  statement,  with  intent  to  defeat  or51™1110113;  pen- 
evade  the  valuation,  enumeration,  or  assessment  intended  a 
to  be  made,  or,  being  duly  summoned  to  appear  to  testify, 
or  to  appear  and  produce  such  books  as  aforesaid,  neglect  s 
to  appear  or  to  produce  said  books,  he  shall  be  fined  not 
exceeding  one  thousand  dollars,  or  be  imprisoned  not 
exceeding  one  year,  or  both,  at  the  discretion  of  the  court, 
with  costs  of  prosecution. 

United  States  v.  MeGinnis  and  Mountjoy  (1  Abb.  U.  S.,  120: 
3  Int.  Rev.  Rec,  159.) 

Sec.  3180.  "Whenever  there  are  in  any  district  any  arti-    Taxable  prop- 
cles  not  owned  or  possessed  by  or  under  the  care  or  con-notnreskien<ts. 
trol  of  any  person  within  such  district,  and  liable  to  be 
taxed,  and  of  which  no  list  has  been  transmitted  to  the 
collector,  as  required  by  law,  the  collector  or  one  of  his 


92  ASSESSMENTS   AND   COLLECTIONS. 

deputies  shall  enter  the  premises  where  such  articles  are 
situated  and  shall  take  such  view  thereof  as  may  be  neces- 
sary, and  make  lists  of  the  same,  according  to  the  form 
prescribed.  Said  lists,  being  subscribed  by  such  collector 
or  deputy,  shall  be  taken  as  sufficient  lists  of  such  articles 
for  all  purposes. 
Lists,  when      Sec.  3181.  The  lists  or  returns  aforesaid  shall,  where 

denominated*1™  not  otherwise  especially  provided  for,  be  taken  with  refer- 
ence to  the  day  fixed  for  that  purpose  by  this  Title  as 
aforesaid;  and  "where  duties  accrue  at  other  and  different 
times,  the  list  shall  be  taken  with  reference  to  the  time 

i875Ct  Feb'  ls  wnen  sai°-  taxes  become  due,  and  shall  be  denominated 
annual,  monthly,  and  special  lists  or  returns. 

There  is  now  no  annual  list.  There  has  been  no  list  denomi- 
nated annual  since  the  act  abolishing  assessors  and  requiring 
special  taxes  to  be  paid  by  stamps.  (Act  Dec.  24,  1872;  17  Stat., 
101.)  Regular  and  Corporation-tax  lists.  _  (T.D.1639.)  See  in- 
structions on  Assessment  List  of  Corporations  (Special  Form  23). 

commissioner      Sec.  3182.  The  Commissioner  of  Internal  Revenue  is 
meil':  thereby  authorized  and  required  to  make  the  inquiries, 

SSte  °ofr  taper- determinations,  and  assessments  of  all  taxes  and  pen- 
f<,  t  lists  wiihin  alties  imposed  by  this  Title,  or  accruing  under  any  former 
internal-revenue  act,  where  such  taxes  had  not  been  duly 
paid  by  stamp  at  the  time  and  in  the  manner  provided  by 
law,  and  shall  certify  a  list  of  such  assessments  when 
made  to  the  proper  collectors  respectively,  who  shall 
proceed  to  collect  and  account  for  the  taxes  and  penalties 
so  certified.  Whenever  it  is  ascertained  that  any  list 
which  has  been  or  shall  be  delivered  to  any  collector,  is 
imperfect  or  incomplete  in  consequence  of  the  omission 
of  the  name  of  any  person  liable  to  tax,  or  in  consequence 
of  any  omission,  or  understatement,  or  undervaluation, 
or  false  or  fraudulent  statement  contained  in  any  return 
made  by  any  person  liable  to  tax,  the  Commissioner  of 
Internal  Revenue  may,  al  any  time  within  fifteen  months 
from  the  time  of  the  delivery  of  the  list  to  the  collector  as 
aforesaid,  enter  on  any  monthly  or  special  list  the  name  of 
such  person  so  omitted,  together  with  the  amount  of  tax 
for  which  he  may  have  been  or  shall  become  liable,  and 
also  the  name  of  any  such  person  in  respect  to  whose 
return,  as  aforesaid,  there  has  been  or  shall  be  any  omis- 
sion, undervaluation,  understatement,  or  false  or  fraud- 
ulent statement,  together  with  the  amount  for  which 
such  person  may  be  liable,  above  the  amount  for  which 
he  may  have  been  or  shall  be  assessed  upon  any  return 
made  as  aforesaid;  and  he  shall  certify  and  return  such 
lisl  to  the  collector  as  required  by  law.  And  all  provi- 
sions of  law  For  the  ascertainment  of  liability  to  any  tax, 
or  the  assessment  or  collection  thereof,  shall  be  held  to 
apply,  80  far  as  may  be  necessary,  to  the  proceedings 
herein  authorized  and  directed. 

iboliehed.    (Ad  Dec.  24, 1872, 17  Stat.,  401.) 

April  h  last  Lisl  made  by  assessors.     (Special 

No.  .vi 


ASSESSMENTS   AND   COLLECTIONS.  93 

The  authority  to  make  assessments  of  taxes  due  is  limited  to 
the  15  months  next  succeeding  the  delivery  to  the  collector 
of  the  list  upon  which  the  assessment  might  have  been  made, 
but  from  which  it  was  omitted,  except  in  cases  where  it  is 
otherwise  provided.     (Regulations,  No.  1,  revised,  p.  6.) 

Assessment  can  not  be  made  of  part  of  a  special-tax  liability. 
When  the  list  on  which  a  special  tax  should  have  first  been 
assessed  (but  from  which  the  same  was  omitted)  has  been 
delivered  to  a  collector  for  a  period  of  more  than  15  months, 
the  special  tax  incurred  becomes  unassessable.  (T.  D.  1364,  May 
26,  1908.) 

Reassessment  within  15  months.  (Dandeleti;.  Smith,  18  Wall., 
642;  Barker  v.  White,  19  Int.  Rev.  Rec,  117;  11  Blatch.,  445; 
Daniels  v.  Tarbox,  9  Blatch.,  176;  Bergdoll  v.  Pollock,  95  U.  S., 
337;  U.  S.  v.  O'Neil,  30  Int.  Rev.  Rec,  127;  19  Fed.  Rep.,  567.) 

Commissioner  to  make  assessments  of  taxes  and  penalties 
(sec.  3176,  p.  89);  of  taxes  on  property  sold  under  distraint  (sec. 
3191,  p.  99);  on  spirits  removed  without  deposit  in  warehouse 
(sec.  3253,  p.  155);  on  spirits  in  case  of  excessive  loss  (sec.  3293  as 
amended,  p.  181);  on  distillers  for  deficiency,  etc.  (sec.  3309, 
p.  202);  on  distillers  in  case  of  failure  concerning  spirits  re- 
moved for  deposit  in  a  general  bonded  warehouse  (sec.  58,  act 
Aug.  28, 1894,  p.  191);  for  export  stamps  issued  (sec.  3314,  p.  208); 
on  tobacco,  snuff,  and  cigars  removed  without  being  stamped 
(sec.  3371,  p.  268);  of  stamps  taxes  within  two  years  (sec.  3437, 
p.  337);  on  fruit  brandy  removed  without  compliance  with  law 
(act  Mar.  3,  1877,  p.  194);  on  oleomargarine  removed  without  be- 
ing stamped  (act  Aug.  2, 1886,  p.  296);  on  playing  cards  removed 
without  being  stamped  (sec.  47,  act  Aug.  28,  1894,  p.  347); 
on  filled  cheese  removed  without  being  stamped  (sec.  10,  act 
June  6,  1896,  p.  307);  tax  on  mixed  flour  removed  without  pay- 
ment of  tax  (sec.  41,  act  June  13,  1898,  p.  312);  tax  on  corpo- 
rations, special  excise  tax  (sec.  38,  act  Aug.  5,  1909,  p.  325). 

As  to  when  an  assessment  is  conclusive.  (United  States  v. 
Black,  11  Blatch.,  538;  19  Int.  Rev.  Rec,  116.  United  States  v. 
Hodson  et  al.,  14  Int.  Rev.  Rec,  100.) 

Legal  effect  of  assessments  as  evidence.  Letter  of  Commis- 
sioner Raum  reviewing  the  decisions  on  the  subject.  (23  Int. 
Rev.  Rec,  5.) 

The  assessment  is  prima  facie  evidence  of  the  amount  due. 
(U.  S.  v.  Rindskopf,  105  U.  S.,  418;  28  Int.  Rev.  Rec,  141. 
Clinkenbeard  v.  United  States,  21  Wall.,  65;  21  Int.  Rev.  Rec, 
37.  United  States  v.  Cole,  134  Fed.  Rep.,  697;  T.  D.  786. 
United  States  v.  Black,  11  Blatch.,  538;  Fed.  Cas.  No.  14600; 
19  Int.  Rev.  Rec,  116.  United  States  v.  Hodson,  14  Int.  Rev. 
Rec,  100;  Fed.  Cas.  No.  15376.  Schmitt  v.  Trowbridge,  24 
Int.  Rev.  Rec,  381;  Fed.  Cas.  No.  12468.  United  States  v. 
Butler,  18  Int.  Rev.  Rec,  164;  Fed.  Cas.  No.  14702.  Charge  to 
the  jury  in  Brown  v.  Harkins.  T.  D.  662.  Western  Express  Co. 
v.  U.  S.,  141  Fed.  Rep.,  28;  T.  D.  965.) 

Obligation  to  pay  tax  does  not  depend  upon  an  assessment. 
(Dollar  Savings  Bank  v.  United  States,  19  Wall.,  227;  19  Int. 
Rev.  Rec,  89;  22  Id.,  310.  King  v.  United  States,  99  U.  S.,  229. 
United  States  v.  Tilden,  9  Benedict,  368;  24  Int.  Rev.  Rec,  99. 
United  States  v.  Little  Miami  Railroad,  26  Ibid.,  101;  1  Fed. 
Rep.,  700.) 

An  assessment  no  bar  to  a  suit  for  an  amount  due  over  and 
above  the  amount  assessed  and  paid.  (United  States  v.  Hazard, 
22  Int.  Rev.  Rec,  309;  United  States  v.  TiMen,  24  Ibid.,  99.) 

The  papers  upon  which  an  assessment  is  made  are  privileged, 
and  courts  have  no  authority  to  require  their  production.  (16 
Op.  Atty.  Gen.,  24;  24  Int.  Rev.  Rec,  178.)  See  notes  under 
section  882  Appendix,  page  391. 

The  assessment,  though  made  after  the  owner  of  the  distillery, 
who  had  consented  in  writing  that  the  premises  should  be  used  as 
a  distillery  and  that  the  taxes  and  penalty  should  be  a  first  lien 
on  the  premises  (see  sec.  3262,  p.  162),  had  sold  it  to  another  party, 


94  ASSESSMENTS   AND   COLLECTIONS. 

was  held  to  be  valid  and  could  not  be  attacked  collaterally,  and 
the  sale  under  distraint  was  valid.  (United  States  circuit  court, 
northern  district  Illinois,  Freysinger  case;  Milan  Distilling 
Co.  v.  Tillson,  collector,  26  Int.  Rev.  Rec,  5.) 

If  the  assessment  is  illegal,  all  proceedings  under  it  are  void 
and  may  be  attacked  collaterally.  (Runkle  v.  Citizens'  Insur- 
ance Co.,  United  States  circuit  court,  southern  district  of  Ohio; 
28  Int.  Rev.  Rec.  74;  6  Fed.  Rep.,  143.) 

Receipts  of  the  collector  on  Form  23J  for  the  alphabetical  list 
Bhowing  taxes  due  are  competent  evidence.  (United  States  v. 
Hunt,  105  U.  S.  I  15  ( >tto),  183;  28  Int.  Rev.  Rec,  134.) 

Allegations  in  a  bill  that  an  assessment  is  irregular  and  void 
do  not  constitute  any  ground  for  an  injunction  to  restrain  collec- 
tion of  the  assessment.  (Alkan  and  Swenger  v.  Bean,  collector, 
23  Int.  Rev.  Rec,  351.)     See  notes  under  section  3224,  page  120. 

Resort  may  be  had  to  the  instructions  of  the  Internal  Revenue 
Office  in  regard  to  the  preparation  of  assessment  lists  to  show 
the  meaning  of  the  abbreviations  in  those  lists.  (Snyder  v. 
Marks,  109  U.  S.,  189;  29  Int.  Rev.  Rec,  403.) 

Assessments  based  on  estimates  are  legal.  (U.  S.  v.  U.  S. 
Fidelity  &  Guaranty  Co.,  144  Fed.  Rep.,  886;  T.  D.  975.) 

The  authority  confided  to  the  assessor  in  making  assessments 
is  in  its  nature  judicial,  and  not  ministerial.  (U.  S.  v.  Hodson, 
Fed.  Cas.  15376;  14  Int.  Rev.  Rec,  100.) 

In  making  an  assessment  officers  act  in  a  quasi-judicial  capac- 
ity. The  presumption  is  that  thev  proceed  regularly.  (Western 
Express  Co.  v.  United  States,  1905  (C.  C.  A.),  141  Fed.  Rep., 
28;  T.  D.965. 

Assessments. — Taxpayers  to  be  notified  in  case  of  doubtful 
liability.     (T.  D.  1275.) 

Character  of  evidence  to  be  submitted  by  revenue  agents 
when  reporting  persons  for  assessment.     (T.  D.  1407.) 

Revenue  agents  when  they  recommend  assessments  should 
state  sufficient  facts  to  sustain  the  charge.     (T.  D.  250.) 

The  fact  that,  for  the  time  being,  a  tax  is  not  collectible  be- 
cause the  party  liable  has  removed  to  foraign  territory,  or  is 
insolvent,  is  not  sufficient  in  itself  to  warrant  omission  of  the 
assessment.     (T.  I).  1553,  Oct.  25,  1909.) 

Circular  letter  (No.  4),  March  27,  1874,  course  to  be  taken  to 
recover  taxes  due,  but  unassessable  (without  waiver). 

Internal-revenue  circular,  No.  567,  instructs  collectors  as  to 
course  to  be  taken  to  recover  taxes  due,  but  unassessable  (with- 
out waiver)  because  of  the  15  months'  limitation.  (T.  D.  Ill, 
Apr.  25,  1900.) 

For  instructions  relative  to  assessment  of  taxes  on  distilled 
spirits  o\  erdue  under  provisions  of  section  3293,  see  notes  under 
that  section,  and  on  assessments  generally,  see  Regulations, 
No.  1,  revised. 

orsDtoy  JouRft     Sec.  3183  [as  arm  nded  by  sec.  3,  act  of  Mar.  1,  1879  (20 

taxes.  Stat.,  327)].     It   shall  be  the  duty  of  the  collectors,  or 

I  licit-  deputies,  in  their  respective  districts,  and  they  are 

„  .  .   .  authorized,  to  collect  all  the  taxes  imposed  by  law,  llOW- 

wot  to  is=ue  re-  ,  .       .  i  r      i  n 

ceipts  in  lieu  ..fever  the  same  may  be  designated.  And  every  collector 
and  deputy  collector  shall  give  receipts  for  all  sums  col- 
lect el  by  hint,  excepting  onhj  when  the  same  are  in  pay- 
ment for  stamps  sold  and  delivered;  hut  no  collector  or 
deputy  collator  shall  issue  a  receipt  in  lieu  of  a  stamp 
representing  a  tax. 

Circular  595  Mar.  n.  1001  (T.  D.  297),  contains  instructions  to 
collectors  relative  to  the  unlawful  issue  of  receipts  for  money 
in  payment  of  special  taxes. 

( Sollectora  are,  advised  thai  ii  is  their  duty  to  use  the  same  dili- 
illecl  a  tax  after  it  lias  been  abated  as  uncollectible,  or 
as  in  suit,  as  before  abatement.    (T.  D.  60,  Mar.  6,  1900.) 


ASSESSMENTS   AND   COLLECTIONS.  95 

Protection  afforded  a  collector  in  collecting  an  assessment. 
(Erskine  v.  Hohnbach,  14  Wall.,  613;  17  Int.  Rev.  Rec,  19. 
Haffin  v.  Mason,  15  Wall.,  671;  17  Int.  Rev.  Rec,  118.  Harding 
v.  Woodcock,  137  U.  S.,  43.) 

Where  an  assessment  is  made,  it  is  the  collector's  duty  ordi- 
narily to  proceed  with  the  collection  of  the  tax  without  ques- 
tioning the  legality  of  the  same.     (T.  D.  621;  Jan  20,  1903.) 

The  collector  has  no  authority  to  question  the  validity  of 
assessments.  The  assessment  lists  constitute  his  warrant  to 
collect.     (Haffin  v.  Mason,  15  Wall.,  675;  17  Int.  Rev.  Rec,  118.) 

[Sec.  3183a.]  Section  37,  act  of  August  28,  1894  (28 
Stat.,  509).  That  it  shall  be  the  duty  of  every  collector 
of  internal  revenue,  to  whom  any  payment  of  any  taxes  g.^jp^t^ 
other  than  the  tax  represented  by  an  adhesive  stamp  or  ment  of  tax. 
other  engraved  stamp  is  made  under  the  provisions  of 
this  Act,  to  give  to  the  person  making  such  payment  a 
full  written  or  printed  receipt,  expressing  the  amount 
paid  and  the  particular  account  for  which  such  payment 
was  made;  and  whenever  such  payment  is  made  such 
collector  shall,  if  required,  give  a  separate  receipt  for  ^f^^*^ 
each  tax  paid  by  any  debtor,  on  account  of  payments  fn'certaVcales. 
made  to  or  to  be  made  by  him  to  separate  creditors  in 
such  form  that  such  debtor  can  conveniently  produce 
the  same  separately  to  his  several  creditors  in  satisfac- 
tion of  their  respective  demands  to  the  amounts  specified 
in  such  receipts ;  and  such  receipts  shall  be  sufficient  evi- 
dence in  favor  of  such  debtor,  to  justify  him  in  with- 
holding the  amount  therein  expressed  from  his  next 
payment  to  his  creditor;  but  such  creditor  may,  upon 
giving  to  his  debtor  a  full  written  receipt,  acknowledging 
the  payment  to  him  of  whatever  sum  may  be  actually 
paid,  and  accepting  the  amount  of  tax  paid  as  aforesaid 
(specifying  the  same)  as  a  further  satisfaction  of  the  debt 
to  that  amount,  require  the  surrender  to  him  of  such 
collector's  receipt. 

Collector  issuing  stamps  before  payment.  (Sec.  3169o,  p.  82.) 
Collections  to  be  paid  into  Treasury  daily.  (Sec  3210,  p.  107.) 
Case  of  Pinknev  Rollins,  collector,  taking  sight  drafts.     (23 

Int.  Rev.  Rec,  6!) 
As  to  rendering  accounts.     (Sec.  3212,  p.  109,  and  sec  3622, 

p.  406.) 

Sec.  3184.  Where  it  is  not  otherwise  provided,  the  col-  J^$t^ de" 
lector  shall  in  person  or  by  deputy,  within  tendays  after 
receiving  any  list  of  taxes  from  the  Commissioner  of 
Internal  Revenue,  give  notice  to  each  person  liable  to 
pay  any  taxes  stated  therein,  to  be  left  at  his  dwelling  or 
usual  place  of  business,  or  to  be  sent  by  mail,  stating  the 
amount  of  such  taxes  and  demanding  payment  thereof.  If 
such  person  does  not  pay  the  taxes  within  ten  days  after 
the  service  or  the  sending  by  mail  of  such  notice,  it  shall 
be  the  duty  of  the  collector  or  his  deputy  to  collect  the 
said  taxes  with  a  penalty  of  five  per  centum  additional  pe^teyp*d c™- 
upon  the  amount  of  taxes,  and  interest  at  the  rate  of  one  terest. 
per  centum  a  month. 

Interest  for  full  time  will  be  collected  on  an  assessment  the 
abatement  for  which  has  been  applied  for  and  rejected;  that  is, 


96  ASSESSMENTS   AND    COLLECTIONS. 

time  consumed  in  considering  the  claim  must  be  included .  But 
in  the  case  of  the  5  per  cent  penalty  such  time  may  be  thrown 
out,  provided  10  days  do  not  elapse  before  claim  is  made  or 
before  payment  after  rejection.  (Regulations,  No.  1,  revised, 
p.  110;  T.  D.  1414.) 

Sections  3184  and  3185  strictly  construed.  (United  States  v. 
Allen,  14  Fed.  Rep.,  263.) 

Notice  necessary  before  taxpayer  can  be  charged  with  penalty 
and  interest.     (United  States  v.  Bristow,  20  Fed.  Rep.,  378.) 

Directions  to  enforce  5  per  cent  penalty  and  interest.  (Aug. 
15,  1871;  14  Int.  Rev.  Rec,  58.) 

Where  50  per  cent  penalty  has  been  added  to  the  special  tax 
under  Sec.  3176,  R.  S.,  the  5  per  cent  penalty  and  interest  must 
be  reckoned  on  the  entire  assessment  including  both  the  tax  and 
50  per  cent  penalty  (T.  D.  870,  Feb.  27,  1905). 

Five  per  cent  penalty  and  interest  on  delayed  payments  of 
assessed  taxes. — Assessed  taxes  held  to  be  due  and  payable  10 
davs  after  actual  mailing  of  Notice  and  Demand,  Form  17. 
(T.  D.  1659.) 

Returns,  when  Sec.  3185.  All  returns  required  to  be  made  monthly  by 
when  Taxlepaayad-  any  person  liable  to  tax  shall  be  made  on  or  before  the 
bie.  tenth  day  of  each  month,  and  the  tax  assessed  or  due 

thereon  shall  be  returned  by  the  Commissioner  of  Inter- 
nal Revenue  to  the  collector  on  or  before  the  last  day  of 
each  month.  All  returns  for  which  no  provision  is  other- 
wise made  shall  be  made  on  or  before  the  tenth  day  of 
the  month  succeeding  the  time  when  the  tax  is  due  and 
liable  to  be  assessed,  and  the  tax  thereon  shall  be  re- 
turned as  herein  provided  for  monthly  returns,  and  shall 
be  due  and  payable  on  or  before  the  last  clay  of  the 
month  in  which  the  assessment  is  so  .made.  When  the 
said  tax  is  not  paid  on  or  before  the  last  day  of  the  month, 
as  aforesaid,  the  collector  shall  add  a  penalty  of  five  per 
centum,  together  with  interest  at  the  rate  of  one  per 
centum  per  month,  upon  such  tax  from  the  time  the 
same  became  due;  but  no  interest  for  a  fraction  of  a 
month  shall  be  demanded:  Provided,  That  notice  of  the 
time  when  such  tax  becomes  due  and  payable  is  given  in 
such  manner  as  may  be  prescribed  by  the  Commissioner 
of  Internal  revenue.  It  shall  then  be  the  duty  of  the 
collector,  in  case  of  the  non-payment  of  said  tax  on  or 
before  the  last  day  of  the  month,  as  aforesaid,  to  demand 
rue  per  cent  payment  thereof,  with  five  per  centum  added  thereto, 
terestai  the  rate  an<^  interest  at  the  rate  of  one  per  centum  per  month,  as 
of-i  percent  per af oresaid,  in  the  manner  prescribed  by  law;  and  if  said 
tax,  penalty,  and  interest,  are  not  paid  within  ten  days 
after  such  demand,  it  shall  be  lawful  for  the  collector  or 
his  deputy  to  make  distraint  therefor,  as  provided  by 
law. 

[nstructions  to  collectors  in  regard  to  notices  to  taxpayers; 
Circular  No.  311  (33  Int.  Rev.  Rec,  109;  included  in  Regula- 
tions No.  2,  Revised  p.  39). 

No  power  to  remit  penalty  and  interest  if  legally  incurred. 
(9  I  hi    Rev.  Rec,  188;  14  ibid.,  58). 

If  Bpirits  :ire  exported  without  payment  of  tax  after  it  has 
been  assessed,  the  distiller  is  not  relieved  from  the  5  per  cent 
penalty,  (('lav  &  Co.  v.  Swope,  collector,  38  Fed.  Rep.,  396; 
35  Int.  Rev.  llec,  136.) 


ASSESSMENTS   AND    COLLECTIONS.  97 

Interest  at  the  rate  of  1  per  cent  per  month  is  recoverable  as 
interest  and  not  as  penalty.  (United  States  v.  Guest  (1906)  143 
Fed.  Rep.,  456;  T.  D.  979.) 

Relative  to  5  per  cent  penalty  and  interest  at  1  per  cent  per 
month  when  claims  for  abatement  have  been  filed  and  rejected — 
See  first  note  under  Sec.  3184. 

Sec.  3186  [as  amended  by  sec.  3,  act  of  Mar.  1,  1879  Lien  for  taxes. 
(20  Stat.,  327).]  If  any  person  liable  to  pay  any  tax 
neglects  or  refuses  to  pay  the  same  after  demand,  the 
amount  shall  be  a  lien  in  favor  of  the  United  States  from 
the  time  when  the  assessment-list  was  received  by  the 
collector,  except  when  otherwise  provided,  until  paid, 
with  the  interest,  penalties,  and  costs  that  may  accrue 
in  addition  thereto,  upon  all  property  and  rights  to  prop- 
erty belonging  to  such  person. 

Because  of  the  special  provision  for  a  lien  for  the  tax  upon 
spirits  (sec.  3251,  p.  150)  there  is  rarely  occasion  for  calling  in 
the  provisions  of  section  3186  in  the  case  of  taxes  on  spirits. 

Lien  in  case  of  deficiency  when  spirits  are  withdrawn  for 
exportation.  (See  16  Op.  Attv.  Gen.,  634;  25  Int.  Rev.  Rec, 
342.) 

In  order  to  support  and  enforce  a  statutory  lien  for  taxes,  all 
the  prerequisites  of  the  law  granting  the  lien  must  be  strictly 
complied  with.     (United  States  v.  Allen,  14  Fed.  Rep.,  263.) 

A  lien  for  taxes  does  not  stand  upon  the  footing  of  an  ordinary 
incumbrance,  and  is  not  displaced  by  a  sale  under  a  preexist- 
ing judgment  or  decree,  unless  otherwise  directed  by  statute. 
It  attaches  to  the  res  without  regard  to  individual  ownership, 
and  when  it  is  enforced  by  sale  pursuant  to  the  statute  prescrib- 
ing the  mode  of  assessing  and  collecting  them,  the  purchaser 
takes  a  valid  and  unimpeachable  title.  (Osterberg  v.  Union 
Trust  Co.,  93  U.  S.  (3  Otto),  424;  23  Int.  Rev.  Rec,  146.) 

The  Pacific  Railroad  Co.  appeared  not  to  have  paid  all  taxes 
due  on  dividends.  It  was  succeeded  by  the  Atlantic  and  Pacific 
Railroad.  Demand  was  made  by  the  collector  of  the  first  dis- 
trict of  Missouri  on  the  Atlantic  and  Pacific  Railroad.  Held 
that  the  demand  did  not  create  a  lien  in  favor  of  the  United 
States.  Demand  must  be  for  specific  amount.  All  the  steps 
required  by  law  must  be  pursued  strictly.  (Decision  by  Judge 
Miller,  23  Int.  Rev.  Rec,  384.) 

A  lien  for  taxes  created  by  the  act  takes  effect  only  upon 
property  belonging  to  the  delinquent  at  the  time  the  demand 
for  the  payment  of  the  tax  is  made.  The  lien  requires  an  assess- 
ment, a  notice  that  the  tax  is  due,  and  a  specific  demand  upon 
the  individual  taxpayer.  There  is  a  distinction  between  the 
liability  of  a  taxpayer  under  the  common  law  and  the  creation 
and  enforcement  of  a  lien.  (Decision  of  Circuit  Judge  McCrary, 
United  States  v.  Pacific  Railroad  et  al.,  26  Int.  Rev.  Rec,  100; 
1  McCrary,  1;  1  Fed.  Rep.,  97;  Brown  v.  Goodwin,  75  N.  Y., 
409.) 

See  on  this  section  United  States  v.  Snyder  (149  U.  S.,  210;  39 
Int.  Rev.  Rec,  189). 

Sec.  3187.  If  any  person  liable  to  pay  any  taxes  neg- bl J«es Ref- 
lects or  refuses  to  pay  the  same  within  ten  days  after 
notice  and  demand,  it  shall  be  lawful  for  the  collector 
or  his  deputy  to  collect  the  said  taxes,  with  five  per 
centum  additional  thereto,  and  interest  as  aforesaid,  by 
distraint  and  sale,  in  the  manner  hereafter  provided,  of 
the  goods,  chattels,  or  effects,  including  stocks,  securi- 
ties, and  evidences  of  debt,  of  the  person  delinquent  as 

72170°— 11 7 


98  ASSESSMENTS   AND    COLLECTIONS. 

emrtop!roba  d^" aforesaid :  Provided,  That  there  shall  be  exempt  from 
St.  r°  s"  distraint  and  sale,  if  belonging  to  the  head  of  a  family, 
the  school-books  and  wearing  apparel  necessary  for  such 
family;  also  arms  for  personal  use,  one  cow,  two  hogs, 
five  sheep  and  the  wool  thereof,  provided  the  aggre- 
gate market-value  of  said  sheep  shall  not  exceed  fifty 
dollars;  the  necessary  food  for  such  cow,  hogs,  and  sheep, 
for  a  period  not  exceeding  thirty  days;  fuel  to  an  amount 
not  greater  in  value  than  twenty-live  dollars;  provisions 
to  an  amount  not  greater  than  fifty  dollars;  household 
furniture  kept  for  use  to  an  amount  not  greater  than 
three  hundred  dollars;  and  the  books,  tools,  or  imple- 
ments, of  a  trade  or  profession,  to  an  amount  not  greater 
than  one  hundred  dollars  shall  also  be  exempt;  and  the 
officer  making  the  distraint  shall  summon  three  disin- 
terested householders  of  the  vicinity,  who  shall  appraise 
and  set  apart  to  the  owner  the  amount  of  property 
herein  declared  to  be  exempt. 

Collectors  in  accepting  sureties  on  bonds  will  be  careful  to 
see  that  no  portion  of  the  property  described  in  the  surety's 
affidavit  is  exempt  from  distraint  under  this  section  or  under 
the  laws  of  the  State  in  which  the  surety  resides. 

State  exemption  laws  do  not  apply  to  distraint  under  this  sec- 
.tion.     (To  Collector  Wheeler,  Dec. "12,  1884.) 

State  exemption  laws  inapplicable  to  debts  due  the  United 
States.     (United  States  v.  Howell,  9  Fed.  Rep.,  674.) 

A  sale  of  property  under  a  distraint  warrant  is  clearly  distin- 
guishable from  a  sale  of  property  seized  and  condemned  in 
forfeiture  proceedings.  A  sale  under  a  distraint  warrant  does 
not  cut  off  the  title  of  a  third  person  who  does  not  owe  the  tax. 
(Sheridan  v.  Allen  etal.,  153  Fed.  Rep.,  568.) 

The  issuance  of  "Omnibus  '  warrants  of  distraint  i3  prohibited. 
Distraint  warrants  should  be  separate,  and  prompt  returns 
should  be  made  by  deputies  in  everv  case,  in  pursuance  of 
directions  from  collectors.     (T.  D.  135J  May  28,  1900.) 

Only  persons  who  are  the  heads  of  families  are  entitled  to  exemp- 
tions.—Merchants  not  entitled  to  exemption  as  persons  engaged 
in  a  trade  or  profession.     (T.  D.  1499. )" 

Taxes  can  lie  collected  by*  distraint  and  by  suit  on  the  bond 
at  the  same  time.  (Harding  u.  Woodcock.  137  V.  S.,  43;  United 
States  v.  Barrowcliff,  3  Ben.,  519,  Fed.  (.'as.,  No.  14528.) 

Procedure  when  property  is  in  hands  of  receiver.     (T.  D.  667.) 

Modeofievytog      Sec.  318S.  In  such  case  of  neglect  or  refusal,  the  collector 

distraint.  -,  ,  .         o  .  i 

may  levy,  or  by  warrant  may  authorize  a  deputy  col- 
lector it.  levy,  upon  all  property  and  rights  to  property, 
except  such  as  are  exempt  by  the  preceding  section, 
belonging  to  such  person,  or  on  which  the  said  lien  exists, 
for  the  payment  of  the  sum  due  as  aforesaid,  with  interest 
and  penalty  for  non-payment,  and  also  of  such  further 
sum  as  shall  be  sufficient  for  the  fees,  costs,  and  expenses 
of  such  levy. 

Delinquents     Sec.  ol.s'.i.  All  persons,  and  officers  of  companies  or  cor- 
SSSeerSit!DgetoPorations>  are  required,  on  demand  of  a  collector  or  deputy 

Irii'i'ii-f r ' y  'lis'r,,ll(>('t<>i'  about  to  distrain  or  having  distrained  on  any 
property,  or  rights  of  property,  to  exhibit  all  books  con- 
taining evidence  or  statements  relating  to  the  subject  of 
distraint,  or  the  property  or  rights  of  property  liable  to 
distraint  for  the  tax  due  as  aforesaid. 


ASSESSMENTS   AND   COLLECTIONS.  99 

Sec.  3190.  When  distraint  is  made,  as  aforesaid,  the dispt™^dings  0D 
officer  charged  with  the  collection  shall  make  or  cause  to 
be  made  an  account  of  the  goods  or  effects  distrained,  a 
copy  of  which,  signed  by  the  officer  making  such  distraint, 
shall  be  left  with  the  owner  or  possessor  of  such  goodsor 
effects,  or  at  his  dwelling  or  usual  place  of  business,  with 
some  person  of  suitable  age  and  discretion,  if  any  such  can 
be  found,  with  a  note  of  the  sum  demanded,  and  the  time 
and  place  of  sale ;  and  the  said  officer  shall  forthwith  cause 
a  notification  to  be  published  in  some  newspaper  within  the 
county  wherein  said  distraint  is  made,  if  a  newspaper  is 
published  in  said  county,  or  to  be  publicly  posted  at  the 
post-office,  if  there  be  one  within  five  miles,  nearest  to  the 
residence  of  the  person  whose  property  shall  be  distrained, 
and  in  not  less  than  two  other  public  places.  Such  notice 
shall  specify  the  articles  distrained,  and  the  time  and  place 
for. the  sale  thereof.  Such  time  shall  not  be  less  than  ten 
nor  more  than  twenty  days  from  the  date  of  such  notifica- 
tion to  the  owner  or  possessor  of  the  property  and  the 
publication  or  posting  of  such  notice  as  herein  provided, 
and  the  place  proposed  for  the  sale  shall  not  be  more  than 
five  miles  distant  from  the  place  of  making  such  distraint. 
Said  sale  ma}^  be  adjourned  from  time  to  time  by  said 
officer,  if  he  deems  it  advisable,  but  not  for  a  time  1<> 
exceed  in  all  thirty  days. 

Collectors  enjoined  against  unnecessary  delays  in  making 
sales,  providing  against  postponement  beyond  the  statutory 
period,  and  as  to  making  reports  promptly.  (T.  D.  623,  Jan.  23, 
1903.) 

Sec.  3191.  When  property  subject   to  tax,  but  upon    when  property 
which  the  tax  has  not  been  paid,  is  seized  upon  distraint ^fntUisdsui.vct 
and  sold,  the  amount  of  such  tax  shall,  after  deducting  the  to  tax,  and  tax 
expenses  of  such  sale,  be  first  appropriated  out  of  thenotpaid- 
proceeds  thereof  to  the  payment  of  the  tax.    And  if  no 
assessment  of  such  tax  has  been  made  upon  such  property, 
the  collector  shall  make  a  return  thereof  in  the  form  re- 
quired by  law,  and  the  Commissioner  of  Internal  Revenue 
shall  assess  the  tax  thereon. 

As  taxes  are  now  paid  by  stamps,  assessments  under  the  last 
clause  are  rarely  necessary.     (See  sec.  3458,  p.  362.) 

Sec.  3192.  When    any    property    advertised    for    sale    when  property 
under  distraint,  as  aforesaid,  is  of  a  kmd  subject  to  tax,  fraintunmay    be 
and  the  tax  has  not  been  paid,  and  the  amount  bid  forPJ^p^*^ 
such  property  is  not  equal  to  the  amount  of  the  tax,  the  etc. 
collector  may  purchase  the  same  in  behalf  of  the  United 
States  for  an  amount  not  exceeding  the  said  tax.     All 
property  so  purchased  may  be  sold  by  the  collector,  under 
such  regulations  as-  may  be  prescribed  by  the  Commis- 
sioner of  Internal  Revenue.     The  collector  shall  render 
to  the  Commissioner  a  distinct  account  of  all  charges 
incurred  in  such  sales,  and,  in  case  of  sale,  shall  pay  into 
the  Treasury  the  surplus,  if  any  there  be,  after  defraying 
all  lawful  charges  and  fees. 


100  ASSESSMENTS   AND   COLLECTIONS. 

property  dis-  gEC-  3193.  In  any  ease  of  distraint  for  the  payment  of 
[Sonpa'tlio  taxes  aforesaid,  the  goods,  chattels,  or  effects  so 
ment  before  sale. ^^^4  s}ux\\  De  restored  to  the  owner  or  possessor,  if, 
prior  to  the  sale,  payment  of  the  amount  due  is  made  to 
the  proper  officer  charged  with  the  collection,  together 
with  the  fees  and  other  charges;  but  in  case  of  nonpay- 
ment as  aforesaid,  the  said  officer  shall  proceed  to  sell  the 
said  goods,  chattels,  or  effects  at  public  auction,  (and 
shall  retain  from  the  proceeds  of  such  sale  the  amount 
demandable  for  the  use  of  the  United  States,  and  a  com- 
mission of  live  per  centum  thereon  for  his  own  use,  with 
the  fees  and  charges  for  distraint  and  sale,  rendering  the 
overplus,  if  any  there  be,  to  the  person  who  may  be  en- 
titled to  receive  the  same.) 

The  clause  in  parenthesis  is  obsolete  in  view  of  subsequent 
legislation. 

Section  3193  was  amended  by  the  act  of  May  27,  1908,  to  the 
<  stent  that  overplus  can  not  be  returned  to  legal  owner  by  a 
collector,  but  must  be  deposited  as  internal-revenue  collections. 
(Int.  Rev.  Cir.  No.  725;  T.  D.  1373.) 

Allowances  for  salary  and  office  expenses  of  collectors  are  in 
lieu  of  salary  and  commissions  formerly  provided  by  law, 
except  a  commission  of  one-half  of  one  per  centum  on  sales  of 
tax-paid  spirit  stamps  is  allowed  where  the  office  is  less  than 
maximum.     See  sees.  3148,  p.  63,  and  3314,  p.  208. 

KfTectofeertifl-  Sec.  3194.  In  all  cases  of  sale,  as  aforesaid,  the  certifi- 
cate of  sue] i  sale  shall  be  prima-facie  evidence  of  the  right 
of  the  officer  to  make  such  sale,  and  conclusive  evidence  of 
the  regularity  of  his  proceedings  in  making  the  sale,  and 
shall  transfer  to  the  purchaser  all  right,  title,  and  interest 
of  such  delinquent  in  and  to  the  property  sold;  and  where 
such  property  consists  of  stocks,  said  certificate  shall  be 
notice,  when  received,  to  any  corporation,  company,  or 
association  of  said  transfer,  and  shall  be  authority  to  such 
corporation,  company,  or  association  to  record  the  same 
on  their  books  and  records  in  the  same  manner  as  if  trans- 
ferred or  assigned  by  the  party  holding  the  same,  in  lieu  of 
any  original  or  prior  certificates,  which  shall  be  void, 
whether  canceled  or  not.  And  said  certificates,  where 
the  subject  of  sale  is  securities  or  other  evidences  of  debt, 
shall  be  good  and  valid  receipts  to  the  person  holding  the 
same  as  against  any  person  holding,  or  claiming  to  hold, 
possession  of  such  securities  or  other  evidences  of  debt. 
.li^'unXTnot  Si:( '■  ::,!,:)-  ^l"'11  any  property  liable  to  distraint  for 
divisible.  taxes  is  not  divisible,  so  as  bo  enable  the  collector  by  a  sale 

of  part  thereof  to  raise  the  whole  amount  of  the  tax,  with 
all  (osts,  charges,  and  commissions,  the  whole  of  such 
property  shall  lie  sold,  and  tin1  surplus  of  the  proceeds  of 
the  -ale,  after  satisfying  the  tax,  costs,  and  charges,  shall 
be  paid  to  the  person  legally  entitled  to  receive  the  same; 
or,  if  he  can  qoI  hi'  found,  or  refuses  to  receive  the  same, 
shall  he  deposited  in  the  'Treasury  of  the  United  States, 
bo  be  there  held  for  his  use  until  he  makes  application 
therefor  to  the  Secretary  of  the  Treasury,  who,  upon  such 
application  and  satisfactory  proofs  in  support  thereof, 


ASSESSMENTS   AND    COLLECTIONS.  101 

shall,  by  warrant  on  the  Treasury,  cause  the  same  to  be 
paid  to  the  applicant. 

The  act  of  May  27,  1908  (35  Stat.,  325),  in  effect  amends  this 
section  by  providing  that  the  gross  amount  of  proceeds  shall  be 
deposited  in  the  Treasury. 

Surplus  proceeds  of  sales  can  not  in  any  case  be  returned  to 
legal  owner  by  a  collector,  but  must  be  deposited  as  internal- 
revenue  collections.  Claims  for  surplus  proceeds  in  cases  where 
persons  entitled  to  receive  same  are  not  known  at  time  of  sale, 
will  be  made  and  paid  as  heretofore.     (Cir.  725;  T.  D.  1373.) 

Sec.  3196.  When  goods,  chattels,  or  effects  sufficient  to    when  real  es- 
satisfy  the  taxes  imposed  upon  any  person  are  not  found  ^satisfy  taxeT.ld 
by  the  collector  or  deputy  collector,  he  is  authorized  to 
collect  the  same  by  seizure  and  sale  of  real  estate. 

Sec.  3197  [as  amended  by  sec.  3,  act  of  Mar.  1,  1879  (20  Proceedings  for 
Stat.,  327)].  The  officer  making  the  seizure  mentioned  in 0T real  eastateSfor 
the  preceding  section  shall  give  notice  to  the  person  whose taxes- 
estate  it  is  proposed  to  sell  by  giving  him  in  hand,  or  leav- 
ing at  his  last  or  usual  place  of  abode,  if  he  has  any  such 
within  the  collection-district  where  the  said  estate  is 
situated,  a  notice,  in  writing,  stating  what  particular 
estate  is  to  be  sold,  describing  the  same  with  reasonable 
certainty,  and  the  time  when  and  place  where  said  officer 
proposes  to  sell  the  same;  which  time  shall  not  be  less 
than  twenty  nor  more  than  forty  days  from  the  time  of 
giving  said  notice.  The  said  officer  shall  also  cause  a 
notification  to  the  same  effect  to  be  published  in  some 
newspaper  within  the  county  where  such  seizure  is  made,  if 
any  such  there  be,  and  shall  also  cause  a  like  notice  to  be 
posted  at  the  post-office  nearest  to  the  estate  seized,  and 
in  two  other  public  places  within  the  county;  and  the 
place  of  said  sale  shall  not  be  more  than  five  miles  dis- 
tant from  the  estate  seized,  except  by  special  order  of  the 
Commissioner  of  Internal  Revenue.  At  the  time  and 
place  appointed,  the  officer  making  such  seizure  shall  pro- 
ceed to  sell  the  said  estate  at  public  auction,  offering  the 
same  at  a  minimum  price,  including  the  expense  of  making 
such  levy,  and  all  charges  for  advertising  and  an  officer's 
fee  of  ten  dollars.  When  the  real  estate  so  seized  con- 
sists of  several  distinct  tracts  or  parcels,  the  officer  making 
sale  thereof  shall  offer  each  tract  or  parcel  for  sale  sepa- 
rately, and  shall,  if  he  deem  it  advisable,  apportion  the 
expenses,  charges,  and  fees  aforesaid  to  such  several 
tracts  or  parcels,  or  to  any  of  them,  in  estimating  the  mini- 
mum price  aforesaid.  If  no  person  offers  for  said  estate 
the  amount  of  said  minimum  price,  the  officer  shall  declare 
the  same  to  be  purchased  by  him  for  the  United  States; 
otherwise  the  same  shall  be  declared  to  be  sold  to  the 
highest  bidder. 

And  in  case  the  same  shall  be  declared  to  be  purchased  xiniteTiSes.  f°r 
for  the  United  States,  the  officer  shall  immediately  trans-  " 
mit  a  certificate  of  the  purchase  to  the  Commissioner  of 
Internal  Revenue,  and,  at  the  proper  time,  as  hereafter 
provided,  shall  execute  a  deed  therefor,  after  its  prepara- 
tion and  the  indorsement  of  approval  as  to  its  form  by 


sale. 


102  ASSESSMENTS    AND    COLLECTIONS. 

the  United  States  district  attorney  for  the  district  in 
which  the  property  is  situate,  and  shall  without  delay 
cause  the  same  to  be  duly  recorded  in  the  proper  registry 
of  deeds,  and  immediately  thereafter  shall  transmit  such 
deed  to  the  Commissioner  of  Internal  Revenue. 

Adjournment  of  And  said  sale  may  be  adjourned  from  time  to  time  by 
said  officer  for  not  exceeding  thirty  days  in  all,  if  he  shall 
think  it  advisable  so  to  do.  If  the  amount  bid  shall  not 
be  then  and  there  paid,  the  officer  shall  forthwith  proceed 
to  again  sell  said  estate  in  the  same  manner. 

Deeds.  And  it  is  hereby  provided,  That  all  certificates  of  pur- 

chase, and  deeds  of  property  purchased  by  the  United 
States  under  the  internal-revenue  laws,  on  sales  for  taxes, 
or  under  executions  issued  from  United  States  courts, 
which  now  are,  or  hereafter  may  be,  found  in  the  office  of 
any  collector,  United  States  marshal,  or  United  States 
district  attorney,  shall  be  immediately  transmitted  by 
such  officers  respectively  to  the  Commissioner  of  Internal 
Revenue. 

(1)  Seizure  of  real  property. — Unless  required  by  statute,  a 
levy  or  seizure  of  real  properly  for  the  purpose  of  sale  to  sat- 
isfy a  debt  or  tax  may  he  made  without  going  upon  the  premises, 
by  making  a  memorandum  upon  the  warrant  of  the  description 
of  the  premises  for  the  purpose  of  a  levy  and  sale. 

I  2  l  S  lie  of  real  propi  rty. — A  deputy  collector  of  internal  reve- 
nue, to  whom  a  warrant  was  directed  for  the  collection  of  a  delin- 
quent tax  due  from  A.  levied  upon  330  acres  of  land  belonging 
to  A,  when  said  tax  became  due,  by  entering  upon  said  warrant 
a  correel  description  of  the  premises,  by  metes  and  bounds,  but 
at  the  same  time  incorrectly  stated  therein  that  they  were  in  the 
occupation  of  B,  who  lived  over  2  miles  distant  from  the  prem- 
ises, and  afterwards  offered  the  premises  which  said  B  lived  on 
for  sale  upon  the  erroneous  assumption  that  they  were  the  prem- 
ises of  A,  upon  which  he  levied  as  above,  and  there  being  no  bid- 
ders, declared  the  same  purchased  for  the  United  States,  for  the 
amount  of  the  tax,  interest  thereon,  and  charges.  Held  that  there 
was  no  valid  sale  of  the  premises,  and  thai  the  United  States 
i  10k  nothing  by  the  subsequent  conveyance  to  it  from  the  col- 
lector. (United  States  /■.  Hess,  5  Sawyer,  533:25  Int.  Rev.  Rec, 
201,  240 

When  real  estate  is  offered  for  sale  under  warrant  of  distraint 
and  is  bid  in  for  the  United  States,  the  amount  bid  should  be  for 
no  I  ■mi  than  is  necessary  to  prevent  the  sale  for  an  inade- 

quate price.     (T.   I).   1654.) 

If  property  is  bid  in  for  an  amount  equal  to  the  tax  it  extin- 
guish! -  the  debt,  and  suit  can  nol  be  maintained  on  the  bond. 
1 1  nited  States  v.  Triplet!,  22  Int.  Rev.  Rec.,  207.) 

Bill  in  equity  by  party  not  in  possession  to  remove  cloud  from 
title  to  land  purchased  by  United  States  not  authorized  unless 
State  Statutes  authorize  it.    (Wilson  v.  United  States,  ns  IS, 

li  is  a  general  rule  thai  in  the  execution  of  a  power  to  sell 

ids  for  nonpaymenl  of  taxes  a  strict  compliance  with  all  the 

materia]   requirements  of   the  statute  authorizing  the  sale  is 

required. 

arding  the  seizure  and  sale  of  real  estate  for  taxes.    (Reg. 

.    12.    Rev.,   p.    ||;  United   States  v.  Mackoy,   2   Dill.,  299; 

Mansfield  i  Refining  Co.,  L35  U.  SM  326:  36  Int.  Rev. 

iv.   .  ;• 


ASSESSMENTS  AND    COLLECTIONS.  103 

Offers  for  real  estate  to  be  deposited  as  internal-revenue  col- 
lections.    (Act  May  27,  1908;  T.  D.  1373.) 

The  officer's  fee  of  $10  for  making  the  sale  of  real  estate  under 
distraint  proceedings  is  no  longer  allowed.  (See  sec.  3206;  T.  D. 
1373.) 

Sec.  3197a.  [An  act  to  regulate  the  manner  in  which  prop- 
erty shall  he  sold  under  orders  and  decrees  of  any  united 
States  courts  (act  of  Mar.  3,  1893,  27  Stat,  751).]  That 
all  real  estate  or  any  interest  in  land  sold  under  any  order 
or  decree  of  any  United  States  Court  shall  be  sold  at  pub- 
lic sale  at  the  Court-house  of  the  county,  parish,  or  city  in 
which  the  property,  or  the  greater  part  thereof,  is  lo- 
cated, or  upon  the  premises,  as  the  court  rendering  such 
order  or  decree  of  sale  may  direct. 

Sec.  2.  That  all  personal  property  sold  under  any  order    sale :  of  personal 
or  decree  of  any  Court  of  the  United  States  shall  be  soldpK 
as  provided  in  the  first  section  of  this  act,  unless  in  the 
opinion  of  the  court  rendering  such  order  or  decree,  it 
would  be  best  to  sell  it  in  some  other  manner. 

Sec.  3.  That  hereafter  no  sale  of  real  estate  under  any^^f^  $ 
order,  judgment,  or  decree  of  any  United  States  Court  real  estate. 
shall  be  had  without  previous  publication  of  notices  of 
such  proposed  sale  being  ordered  and  had  once  a  week 
for  at  least  four  weeks  prior  to  such  sale  in  at  least  one 
newspaper  printed,  regularly  issued  and  having  a  general 
circulation  in  the  county  and  State  where  the  real  estate 
proposed  to  be  sold  is  situated,  if  such  there  be.  If  said 
property  shall  be  situated  in  more  than  one  county  or 
State,  such  notice  shall  be  published  in  such  of  the  coun- 
ties where  said  property  is  situated,  as  the  court  may 
direct.  Said  notice  shall,  among  other  things,  describe 
the  real  estate  to  be  sold.  The  court  may,  in  its  discre- 
tion, direct  the  publication  of  the  notice  of  sale  herein  pro- 
vided for  to  be  made  in  such  other  papers  as  may  seem 
proper. 

Bill  for  advertising  must  be  made  on  Form  153  approved  by 
the  Comptroller  December  29,  1909.  (Regulations  No.  2,  rev., 
p.  48.) 

Sec.  3198.  Upon  any  sale  of  real  estate,  as  provided pucrecrh"seCatDeedf 
in  the  preceding  section,  and  the  payment  of  the  purchase 
mone}r,  the  officer  making  the  seizure  and  sale  shall  give 
to  the  purchaser  a  certificate  of  purchase,  which  shall  set 
forth  the  real  estate  purchased,  for  whose  taxes  the  same 
was  sold,  the  name  of  the  purchaser,  and  the  price  paid 
therefor;  and  if  the  said  real  estate  be  not  redeemed  in 
the  manner  and  within  the  time  hereafter  provided,  the 
said  collector  or  deputy  collector  shall  execute  to  the  said 
purchaser,  upon  his  surrender  of  said  certificate,  a  deed 
of  the  real  estate  purchased  by  him  as  aforesaid,  reciting 
the  facts  set  forth  in  said  certificate,  and  in  accordance 
with  the  laws  of  the  State  in  which  such  real  estate  is 
situate  upon  the  subject  of  sales  of  real  estate  under  exe- 
cution. 


104  ASSESSMENTS  AND   COLLECTIONS. 

toS^rima H£  Sec.  3199-  Tne  ^eecl  of  sule  g*ven  in  pursuance  of  the 
evidence,  etc.  preceding  section  shall  be  prima  facie  evidence  of  the  facts 
therein  stated;  and  if  the  proceedings  of  the  officer  as  set 
forth  have  been  substantially  in  accordance  with  the  pro- 
visions of  law,  shall  be  considered  and  operate  as  a  con- 
veyance of  all  the  right,  title,  and  interest  the  party  delin- 
quent had  in  and  to  the  real  estate  thus  sold  at  the  time 
the  lien  of  the  United  States  attached  thereto. 

In  case  of  a  distillery,  although  consent  is  given  that  the  Gov- 
ernment has  a  prior  lien,  only  interest  of  distiller  is  transferred  to 
purchaser.  (Mansfield  v.  Excelsior  Refining  Co.,  36  Int.  Rev. 
Rec,  165;  135  U.  S.,  326.) 

Relative  to  deeds.  (Brown  v.  Goodwin,  75  N.  Y.,  409;  Fox  v, 
Stafford,  90  N.  C,  296;  Flemister  v.  Flemister,  83  Ga.,  79.) 

sePzfiands  otdl  Sec-  320°-  Any  collector  or  deputy  collector  may,  for 
linquent  in  any  the  collection  of  taxes  imposed  upon  any  person,  and  coin- 
stated  e  mitted  to  him  for  collection,  seize  and  sell  the  lands  of  such 
person  situated  in  any  other  collection  district  within  the 
State  in  which  such  officer  resides ;  and  his  proceedings  in 
relation  thereto  shall  have  the  same  effect  as  if  the  same 
were  hud  in  his  proper  collection  district. 
nddriSrPti)0saief  ^ec.  3201.  Any  person  whose  estate  maybe  proceeded 
against  as  aforesaid  shall  have  the  right  to  pay  the  amount 
due.  together  with  the  costs  and  charges  thereon,  to  the 
collector  or  deputy  collector  at  any  time  prior  to  the  sale 
thereof,  and  all  further  proceedings  shall  cease  from  the 
time  of  such  payment. 
Redemption  of  gEC_  3202.  The  owners  of  any  real  estate  sold  as  afore- 
said,  their  heirs,  executors,  or  administrators,  or  any  per- 
son having  any  interest  therein,  or  a  lien  thereon,  or  any 
person  in  their  behalf,  shall  be  permitted  to  redeem  the 
land  sold,  or  any  particular  tract  thereof,  at  any  time 
within  one  year  alter  t  he  sale  thereof,  upon  payment  to  the 
purchaser,  or,  in  case  he  can  not  be  found  in  the  county  in 
which  the  land  to  be  redeemed  is  situate,  then  to  the  col- 
lector of  the  district  in  which  the  land  is  situate,  for  the 
use  of  the  purchaser,  his  heirs  or  assigns,  the  amount  paid 
by  the  said  purchaser  and  interest  thereon  at  the  rate  of 
twenty  per  centum  per  annum. 

Sec.  3203  [as  ami  nded  by  sec.  S,  act  of  Mar.  1,  1879  (20 
Stat.,  327)}.  It  shall  he  the  duty  of  every  collector  to  keep 
a  record  of  all  sales  of  land  made  in  his  collection  district, 
whether  by  himself  or  his  deputies,  or  by  another  collector, 
in  which  shall  be  set  forth  the  tax  for  which  any  such  sale 
was  made,  the  dates  of  seizure  and  sale,  the  name  of  the 
party  assessed,  and  all  proceedings  in  making  said  sale, 
amount  of  Un<<,  and  expenses,  the  name  of  the  purchaser 
and  the  date  of  the  i\cc(\ ;  and  said  record  shall  be  certified 
by  the  officer  making  the  sale.  And  on  or  before  the  fifth 
day  of  each  succeeding  month  he  shall  transmit  a  copy  of 
smli  record  of  the  preceding  month  to  the  Commissioner 
of  Internal  Revenue. 

And  it  shall  be  the  duty  of  every  deputy  making  sale,  as 
aforesaid,  to  return  a.  statement  of  all  his  proceedings  to 


ASSESSMENTS  AND    COLLECTIONS.  105 

the  collector,  and  to  certify  the  record  thereof.  In  case  of 
the  death  or  removal  of  the  collector,  or  the  expiration  of 
his  term  of  office  from  any  other  cause,  said  record  shall  be 
delivered  to  his  successor  in  office ;  and  a  copy  of  every 
such  record,  certified  by  the  collector,  shall  be  evidence  in 
any  court  of  the  truth  of  the  facts  therein  stated. 
Record  of  sales,  Book  No.  21.     Report  on  Form  128. 

Sec.  3204.  When  any  lands  sold,  as  aforesaid,  are  re- JjeRedempttons to 
deemed  as  heretofore  provided,  the  collector  shall  make  record. 
entry  of  the  fact  upon  the  record  mentioned  in  the  preced- 
ing section,  and  the  said  entry  shall  be  evidence  of  such 
redemption. 

Sec.  3205.  Whenever  any  property,  personal  or  real,  successive 
which  is  seized  and  sold  by  virtue  of  the  foregoing  provi-  ma<tefwnenJ 
sions,  is  not  sufficient  to  satisfy  the  claim  of  the  United 
States  for  which  distraint  or  seizure  is  made,  the  collector 
may,  thereafter,  and  as  often  as  the  same  may  be  neces- 
sary, proceed  to  seize  and  sell,  in  like  manner,  any  other 
property  liable  to  seizure  of  the  person  against  whom  such 
claim  exists,  until  the  amount  due  from  him,  together  with 
all  expenses,  is  fully  paid. 

Sec.  3206.  The  Commissioner  of  Internal  Revenue  shall  eh^reees  sin  asnizd. 
by  regulation  determine  the  fees  ami  charges  to  be  allowed  ure  eases. 
in  all  cases  of  distraint  and  other  seizures;  and  shall  have 
power  to  determine  whether  any  expense  incurred  in  mak- 
ing any  distraint  or  seizure  was  necessary. 

Regulations,  No.  2,  revised,  page  48;  T.  I).  1373;  T.  D.  1521. 

Sec.  3207.  In  anv  case  where  there  has  been  a  refusal  or    Proceedings  in 

,  J  i    •.    i  i  chancery  to  sub- 

neglect  to  pav  anv  tax,  and  it  has  become  necessary  to  ject  real  estate  to 

seize  and  sell  real  estate  to  satisfy  the  same,  the  Commis-  w™*1  of tax- 

sioner  of  Internal  Revenue  may  direct  a  bill  in  chancery 

to  be  filed,  in  a  district  or  circuit  court  of  the  United 

States,  to  enforce  the  lien  of  the  United  States  for  tax 

upon  any  real  estate,  or  to  subject  any  real  estate  owned 

by  the  delinquent,  or  in  which  he  has  any  right,  title,  or 

interest,  to  the  payment  of  such  tax.     All  persons  having 

liens  upon  or  claiming  any  interest  in  the  real  estate  sought 

to  be  subjected  as  aforesaid,  shall  be  made  parties  to  such 

proceedings,  and  be  brought  into  court  as  provided  in 

other  suits  in  chancery  therein.     And  the  said  court  shall, 

at  the  term  next  after  the  parties  have  been  duly  notified 

of  the  proceedings,  unless  otherwise  ordered  by  the  court, 

proceed  to  adjudicate  all  matters  involved  therein,  and 

linally  determine  the  merits  of  all  claims  to  and  liens  upon 

the  real  estate  in  question,  and,  in  all  cases  wThere  a  claim 

or  interest  of  the  United  States  therein  is  established, 

shall  decree  a  sale  of  such  real  estate,  by  the  proper  officer 

of  the  court,  and  a  distribution  of  the  proceeds  of  such 

sale  according  to  the  findings  of  the  court  in  respect  to  the 

interests  of  the  parties  and  of  the  United  States. 

"The  Judicial  Code,"  Act  of  March  3,  1911  (36  Stat.  1087), 
which  goes  into  effect  January  1,  1912,  abolishes  Circuit  Courts 
and  imposes  the  powers  and  duties  thereof  on  District  Courts. 


106  ASSESSMENTS  AND   COLLECTIONS. 

The  provision  for  suit  in  equity  to  enforce  a  lien  for  taxes  does 
not  supersede  the  remedy  bv  distraint  but  is  cumulative. 
(Blacklock  v.  United  States,  208  U.  S.  75,  affirming  40  Ct.  Cls., 
90;  (Alkan  v.  Bean,  8  Biss.,  83;  23  Int.  Rev.  Rec,  351.) 

Bill  under  section  3207  to  subject  real  estate  to  payment  of 
assessment  on  distilled  spirits.  (United  States  v.  Rindskopf, 
8  Biss.,  507.) 

Bill  in  equity  to  enforce  lien  on  distillerv.  (United  States  v. 
Mackoy,  2  Dill.,  229.) 

The  Government  loses  none  of  its  remedies  to  collect  its  reve- 
nue unless  there  is  an  express  repeal  or  abrogation  of  some  exist- 
ing remedy.     (18  Op.  Atty.  Gen.,  248.) 

to^afedllrgTof     Sec-  3208  las  amended  by  sec.  3,  act  of  Mar.  1,  1879  (20 

real     estate     bo- Stat.,  327)]. 

ternai-rTveVue     The  Commissioner   of    Internal  Revenue  shall    have 
laws, etc.  charge  of  all  real  estate  which  is  now  or  shall  become 

the  property  of  the  United  States  by  judgment  of  for- 
feiture under  the  internal-revenue  laws,  or  which  has  been 
or  shall  be  assigned,  set  off,  or  conveyed  by  purchase  or 
otherwise  to  the  United  States  in  payment  of  debts  or 
penalties  arising  under  the  laws  relating  to  internal  reve- 
nue, or  which  has  been  or  shall  be  vested  in  the  United 
States  by  mortgage  or  other  security  for  the  payment  of 
such  debts,  and  of  all  trusts  created  for  the  use  of  the 
United  States  in  payment  of  such  debts  due  them;  and, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may 
at  public  vendue,  and  upon  not  less  than  twenty  days' 
notice,  sell  and  dispose  of  all  real  estate  owned  or  held  by 
the  United  States  as  aforesaid;  and  until  such  sale  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  may  lease  such  real  estate 
owned  as  aforesaid  on  such  terms  and  for  such  period  as 
they  shall  deem  expedient. 

And  in  cases  where  real  estate  has  or  may  become  the 
property  of  the  United  States  by  conveyance  or  otherwise, 
in  payment  of  or  as  security  for  a  debt  arising  under  the 
laws  relating  to  internal  revenue,  and  such  debt  shall  have 
been  paid,  together  with  the  interest  thereon,  at  the  rate  of 
one  per  centum  per  month,  to  the  United  States,  within 
two  years  from  the  date  of  the  acquisition  of  such  real 
estate,  it  shall  be  lawful  for  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treas- 
ury, to  release  by  deed,  or  otherwise  convey  such  real 
estate  to  the  debtor  from  whom  it  was  taken,  or  to  Iris 
heirs  or  other  legal  representatives. 

Solicitor  of  the  Treasury  to  have  charge  of  real  estate  owned 
by  United  States  in  certain  cases.     (Sec.  3750.) 

Sec  3470.  At  every  sale,  on  execution,  at  the  suit  of  the 
United  States,  of  lands  or  tenements  of  a  debtor,  the  United 
States  may,  by  such  agent  as  the  Solicitor  of  the  Treasury  shall 
appoint,  become  the  purchaser  thereof;  but  in  no  case  shall  the 
agent  bid  in  behalf  ot  the  United  States  a  greater  amount  than 
that  of  the  judgment  for  which  such  estate  may  be  exposed  to 
sale  and  the  costs.  Whenever  such  purchase  is  made,  the  mar- 
shal of  the  district  in  which  the  sale  is  held  shall  make  all 
needful  conveyances,  assignments,  or  transfers  to  the  United 
States. 


ASSESSMENTS  AND    COLLECTIONS.  107 

Section  3470  does  not  apply  to  cases  arising  under  the  internal- 
revenue  laws.  (To  United  States  Attorney  Stripling,  Oct.  8, 
1898.) 

Commissioner  not  authorized  to  take  charge  of  lands  acquired 
in  satisfaction  of  judgments  recovered  on  the  official  bonds  of 
collectors  of  internal  revenue.     (16  Op.  Atty.  Gen.,  143.) 

Real  estate  purchased  by  the  Government  is  not  subject  to 
State  taxation  after  it  has  become  the  property  of  the  United 
States.     (Van  Brocklin  v.  State  of  Tennessee,  117  U.  S.,  151.) 

Regulations  No.  12,  revised,  page  35. 

Sec.  3209.  Whenever  a  collector  has  on  any  list  duly  when  list  to  be 
returned  to  him  the  name  of  any  person  not  within  his  where  the' party 
collection  district  who  is  liable  to  tax,  or  of  any  person  so  lfalepVoPCTtyS  or 
liable  who  has,  in  the  collection  district  in  which  he  re- 
sides, no  sufficient  property  subject  to  seizure  or  distraint, 
from  which  the  money  due  for  tax  can  be  collected,  such 
collector  shall  transmit  a  statement  containing  the  name 
of  the  person  liable  to  such  tax,  with  the  amount  and 
nature  thereof,  duly  certified  under  his  hand,  to  the  col- 
lector of  any  district  to  which  said  person  shall  have 
removed,  or  in  which  he  shall  have  property,  real  or  per- 
sonal, liable  to  be  seized  and  sold  for  tax.  And  the  col- 
lector to  whom  the  said  certified  statement  is  transmitted 
shall  proceed  to  collect  the  said  tax  in  the  same  way  as  if 
the  name  of  the  person  and  objects  of  tax  contained  in 
the  said  certified  statement  were  on  any  list  of  his  own 
collection  district;  and  he  shall,  upon  receiving  said  cer- 
tified statement  as  aforesaid,  transmit  his  receipt  for  it  to 
the  collector  sending  the  same  to  him. 

Sec.  3210.  The  gross  amount  of  all  taxes  and  revenues  collections  to 
received  or  collected  by  virtue  of  this  title,  or  of  any  law i^easurydaiiy 
hereafter  enacted  providing  internal  revenue,  shall  be  paid, 
by  the  officers  receiving  or  collecting  the  same,  daily  into 
the  Treasury  of  the  United  States,  under  the  instructions 
of  the  Secretary  of  the  Treasury,  without  any  abatement 
or  deduction  on  account  of  salary,  compensation,  fees, 
costs,  charges,  expenses,  or  claims  of  any  description; 
and  a  certificate  of  such  payment,  stating  the  name  of  the 
depositor  and  the  specific  account  on  which  the  deposit 
was  made,  signed  by  the  Treasurer,  assistant  treasurer, 
designated  depositary,  or  proper  officer  of  a  deposit  bank, 
shall  be  transmitted  to  the  Commissioner  of  Internal 
Revenue :  Provided,  That  in  districts  where,  from  the  dis- 
tance of  the  officer,  collector,  or  agent  receiving  or  col- 
lecting such  taxes  and  revenues  from  a  proper  Govern- 
ment depository,  the  Secretary  of  the  Treasury  may  deem 
it  proper,  he  may  extend  the  time  for  making  such  pay- 
ment, not  exceeding,  however,  in  any  case  a  period  of  one 
month. 


n  t  o 


108 


ASSESSMENTS   AND   COLLECTIONS. 


paid    daily    into 
the  Treasury 


[Sundry  civil  appropriation  act  for  the  fiscal  year  ending  June  30, 1909,  approved  May  27, 

1908  (35  Stat.,  325).] 
***** 

collections  to  be  After  June  thirtieth,  nineteen  hundred  and  eight,  col- 
lectors  of  internal  revenue  shall  pay  daily  into  the  .treas- 
ury of  the  United  States,  under  instructions  of  the  Secre- 
tary of  the  Treasury,  the  gross  amounts  of  all  collec- 
tions of  whatever  nature  made,  by  authority  of  law, 
and  the  same  shall  be  covered  into  the  Treasury  as 
internal-revenue     collections. 


(T.  D.  1373,  Circular  No.  725.) 


Collectors  to 
render    accounts 


^JC  **£%  *f»  *f*  ^j» 

Collectors  of  internal  revenue  shall  render  their  revenue 


quarterly.  accounts  quarterly. 

Money  receivable  for  internal  revenue: 

(Sec.  3473,  R.  S.,  as  amended  by  act  Feb.  28,  1878,  20  Stat.,  25, 
and  act  of  March  2,  1911,  36  Stat.,  965.)  Instructions  to  officers 
(Regulations  No.  2,  revised,  p.  10.) 

See  section  3216,  page  111. 

The  standard  silver  dollar  and  silver  certificates  authorized 
by  the  act  of  February  28,  1878  (20  Stat.,  25),  are  legal  tender 
to  any  amount.  Silver  coins  less  than  $1  legal  tender  to  amount 
of  $10,  act  June  9,  1879  (21  Stat.,  7).  Gold  coins  (sec.  3511). 
Silver  certificates  for  $1,  $2,  and  $5,  act  March  3,  1887.  (24  Stat., 
515.)  Standard  of  value  fixed — gold  dollar.  Act  of  March  14, 
1900  (31  Stat.,  45). 

An  act  relating  to  Hawaiian  silver  coinage  and  silver  certifi- 
cates.    (Act  Jan.  14,  1903,  32  Stat.,  770.) 

Regulations  on  deposit  of  funds  see  Reg.  No.  2,  revised,  pp. 
13-16. 

Miltenberger  v.  Cooke  (18  Wall.,  421)  decided  that  a  collector 
in  accepting  a  draft  in  payment  of  a  tax  acts  at  his  own  risk 
and  does  not  bind  the  United  States.  But  see  Act  of  March  2, 
1911,  below. 

American  Brewing  Co.  v.  U.  S.  (33  Ct.  Cls.,  348). 

Sec.  3211.  The  Secretary  of  the  Treasury  is  authorized 
to  designate  one  or  more  depositories  in  each  State,  for  the 
deposit  and  safe-keeping  of  the  money  collected  by  virtue 
Depositories.  (Jf  the  internal-revenue  laws;  and  the  receipt  of  the  proper 
officer  of  such  depository  to  a  collector  for  the  money 
deposited  by  him  shall  be  a  sufficient  voucher  for  such  col- 
lector in  the  settlement  of  his  accounts  at  the  Treasury 
Department. 

See  section  89,  Criminal  Code,  page  410. 

Any  form  of  exchange,  which  designated  depositories  will 
receive  as  cash,  issuing  therefor  certificates  of  deposit,  under 
the  provisions  of  sec.  3211,  Revised  Statutes,  may  be  received 
in  payment  of  taxes. 

re^ewlbu^S?     Act  of  March  2, 1911  (36  Stat.  965).      That  it  shall  be  law- 
taxe  Jul  for  colli  ctors  of  customs  and  of  internal  revenue  to  receive 

for  duties  onim  ports  and  inti  mat  ta  xes  certified  checks  drawn 
on  national  and  State  banks,  and  trust  companies  during  such 
time  ami  under  such  regulations  as  the  Secretary  of  the 
Treasury  may  prescribe.  X<>  person,  however,  who  man  be 
indebted  to  the  United  States  on  account  of  duties  on  im- 
ports or  internal  fans  who  shall  hare  tendered  a  certified 
check  or  clucks  as  provisional  payment  for  such  duties  or 


ASSESSMENTS   AND    COLLECTIONS.  109 

taxes,  in  accordance  with  the  terms  of  this  Act,  shall  be  re- 
leased from  the  obligation  to  make  ultimate  payment  thereof 
until  such  certified  check  so  received  has  been  duly  paid; 
and  if  any  such  check  so  received  is  not  duly  paid  by  the 
bank  on  which  it  is  drawn  and  so  certifying,  the  United 
States  shall,  in  addition  to  its  right  to  exact  payment  from 
the  party  originally  indebted  therefor,  have  a  lien  for  the 
amount  of  such  check  upon  all  the  assets  of  such  bank;  and 
such  amount  shall  be  paid  out  of  its  assets  in  preference  to 
any  or  all  other  claims  whatsoever  against  said  bank,  except 
the  necessary  costs  and  expenses  of  administration  and  the 
reimbursement  of  the  United  States  for  the  amount  ex- 
pended in  the  redemption  of  the  circulating  notes  of  such 
bank. 

Dept.  Cir.  No.  25,  April  18,  1911.     (T.  D.  31513.) 

Sec.  2.   That  this  Act  shall  be  effective  on  and  after  June 
first,  nineteen  hundred  and  eleven. 

Sec.  3212.  Every  collector  shall,  at  the  expiration  of  montiiiVstat* 
each  month  after  he  commences  his  collections,  transmit  ment;  accounts. 
to  the  Commissioner  of  Internal  Revenue  a  statement  of 
the  collections  made  by  him  within  the  month.  And 
every  collector  shall  complete  the  collection  of  all  sums 
assigned  to  him  for  collection,  and  shall  pay  over  the  same 
into  the  Treasury,  and  shall  render  his  accounts  to  the 
Treasury  Department  as  often  as  he  may  be  required. 

See  provisions  of  law  in  Appendix  as  to  penalty  for  using 
public  funds,  failing  to  render  accounts,  etc. 

See  section  12,  act  July  31,  1894,  Appendix,  page  406. 

Collectors  are  required  to  render  disbursing  accounts  monthly 
and  revenue  accounts  quarterly.  Act  of  May  27,  1908  (35 
Stat.,  325). 

They  will  render  accounts  upon  giving  new  bonds;  disbursing 
account  upon  giving  new  disbursing  officer's  bond  and  revenue 
account  upon  giving  new  collector's  bond,  and  final  account 
upon  separation  from  the  service. 

The  Auditor  for  the  Treasury  Department  shall  receive  and 
examine  all  accounts  for  salaries  and  incidental  expenses  of 
the  office  of  the  Secretary  of  the  Treasury,  and  all  bureaus  and 
offices  under  his  direction,  all  accounts  relating  to  *  *  * 
internal  revenue  *  *  *.  (Sec.  7,  act  July  31,  1894;  Supp. 
U.  S.  Rev.  Stat.,  vol.  2,  p.  213.     "Dockery  bill.") 

Sec.  3213.  It  shall  be  the  duty  of  the  collectors,  in  their  „  Suits>  etc.,  for 

%}  I1I1GS  TlGIltlltlGS 

respective  districts,  subject  to  the  provisions  of  this  title,  and  '  forfeitures^ 
to  prosecute  for  the  recovery  of  any  sums  which  may  be and  for  taxes' 
forfeited  by  law.  All  suits  for  fines,  penalties,  and  for- 
feitures, where  not  otherwise  provided  for,  shall  be 
brought  in  the  name  of  the  United  States,  in  any  proper 
form  of  action,  or  by  any  appropriate  form  of  proceeding, 
qui  tarn  or  otherwise,  before  any  circuit  or  district  court 
of  the  United  States  for  the  district  within  which  said 
fine,  penalty,  or  forfeiture  may  have  been  incurred,  or 
before  any  other  court  of  competent  jurisdiction;  and 
taxes  may  be  sued  for  and  recovered  in  the  name  of  the 
United  States,  in  any  proper  form  of  action,  before  any 
circuit  or  district  court  of  the  United  States  for  the  dis- 


110  ASSESSMENTS   AND    COLLECTIONS. 

trict  within  which  the  liability  to  such  tax  is  incurred,  or 
where  the  party  from  whom  such  tax  is  due  resides  at  the 
time  of  the  commencement  of  the  said  action. 

"The  Judicial  Code",  A.ct  of  March  3,  1911  (36  Stat.  1087), 
which  goes  into  effect  January  1,  1912,  abolishes  Circuit  Courts 
and  imposes  the  powers  and  duties  thereof  on  District  Courts. 

See  section  733,  in  Appendix,  page  385;  section 838,  page  401; 
section  3164,  page  77. 

Suits  for  the  recovery  of  taxes  can  be  brought  at  any  time, 
whether  the  taxes  have  been  assessed  or  not,  and  whether  they 
are  assessable  or  not.  (Dollar  Savings  Bank  v.  United  States, 
19  Wall.,  227;  19  Int.  Rev.  Rec,  89.  King  v.  United  States,  99 
U.  S.,  229.  United  States  v.  Little  Miami  Co.  and  X.  R.  R.  Co., 
1  Fed.  Rep.,  700.  United  States  v.  Tilden,  9  Ben.,  368;  24  Int. 
Rev.  Rec,  99,  T.  D.  676.) 

Suits  commenced  in  a  criminal  case  on  filing  an  indictment; 
in  a  civil  case  on  filing  a  declaration.     (T.  D.,  18941,  1898.) 

A  civil  action  upon  a  bond  grows  out  of  a  contract.  The 
penal  sum  named  in  a  bond  is  not  a  penalty  within  the  statute  of 
limitations.     (Raymond  v.  United  States,  14  Blatchf.,  451.) 

Interest. — Interest  on  taxes  sued  for  runs  from  time  taxes  were 
due.  (United  States  v.  Erie  Railroad,  106  U.  S.,  327;  29  Int.  Rev. 
Rec,  58.) 

In  the  case  of  taxes  not  assessed,  where  no  special  law  applies, 
interest  should  be  claimed  from  the  commencement  of  the  suit, 
if  no  previous  demand  has  been  made,  or  from  date  of  demand, 
if  demand  can  be  proved. 

Interest  due  under  the  general  principle  of  law  on  the  subject. 
(Young  v.  Golbe,  15  Wall.,  562.  Bonnafon  v.  United  States,  14 
Ct.  Cls.,  484.)  m 

Partners  civilly  liable  for  violation  of  law  committed  by  co- 
partner.    (United  States  v.  Thomasson,  4  Biss.,  99.) 

Indictment — recovery  of  fines  and  penalties.  (United  States 
v.  Craft,  43  Fed.  Rep.,  374;  36  Int.  Rev.  Rec,  360.) 

A  penalty  may  be  recovered  by  indictment  or  by  civil  action 
in  the  form  of  an  action  for  debt.  (Lees  v.  United  States,  150 
U.  S.2  479.  U.  S.  v.  Foster,  2  Biss.,  453;  19  Int.  Rev.  Rec,  5.) 
But  in  case  of  alternative  punishment  see  U.  S.  v.  Morin,  4 
Biss.  93. 

The  term  penalty  involves  the  idea  of  punishment  and  its 
character  is  not  changed  by  the  mode  in  which  it  is  inflicted, 
whether  by  civil  action  or  a  criminal  prosecution.  (U.  S.  v. 
Chouteau,  102  U.  S.,  603;  27  Int.  Rev.  Rec,  49.) 

Cumulative  penalties.  (Case  of  Leszynsky,  25  Int.  Rev. 
Rec,  71.) 

A  judgment  in  a  criminal  case  must  conform  to  the  require- 
ments of  the  statute,  and  any  variation  therefrom,  either  in 
the  character  or  extent  of  the  punishment  inflicted,  avoids  the 
judgment.     (Woodruff  v.  United  States,  58  Fed.  Rep.,  768.) 

A  court  has  no  authority  to  impose  a  fine  only  in  a  case  where 
the  law  requires  fine  and'  imprisonment.  (U.  S.  v.  Braun  and 
Fitts,  158  Fed.  Rep.,  456.) 

It  was  held  by  the  Supreme  Court  in  ex  parte  Karstendick 
(93  U.  S.,  396)  that  in  cases  where  the  statute  makes  hard  labor 
a  part  of  the  punishment  it  is  imperative  upon  the  court  to 
include  thai  in  the  sentence.  (In  re  Johnson,  46  Fed.  Rep., 
481.) 

All  participants  in  misdemeanors  are  liable  as  principals. 
(U.  S.  v.  Sykes,  58  Fed.  Rep.,  1000.  U.  S.  v.  White  &  Paller, 
T.  D.  1334.) 

Section  332  of  the  act  of  March  4,  1909  (35  Stat.,  1152), 
Criminal  Code. — Whoever  directly  commits  any  act  consti- 
tuting an  offense  defined  in  any  law  of  the  United  States,  or  aids, 
abets,  counsels,  commands,  induces,  or  procures  its  commission, 
is  a  principal. 

Felonies  defined.     (See  p.  388.) 


cers. 


ASSESSMENTS  AND    COLLECTIONS.  Ill 

Sec.  3214.  No  suit  for  the  recovery  of  taxes,  or  of  any  etf uit£0f°r ^Xbe 
fine,  penalty,  or  forfeiture,  shall  be  commenced  unless  the  brought  without 
Commissioner  of  Internal  Revenue  authorizes  or  sanctions  missio°Mr?f  Com" 
the  proceedings:  Provided,  That  in  case  of  any  suit  for 
penalties  or  forfeitures  brought  upon  information  received 
from  any  person,  other  than  a  collector  or  deputy  collector, 
the  United  States  shall  not  be  subject  to  any  costs  of  suit. 

Section  969,  Appendix,  page  392,  has  a  similar  provision  to  that 
contained  in  the  above  proviso. 

For  the  recovery  of  taxes,  see  Regulations,  Xo.  2,  revised, 
page  36;  Regulations,  No.  14,  revised,  page. 9. 

Circular  319,  relative  to  suits  for  taxes  (34  Int.  Rev.  Rec,  333); 
Circular  331,  relative  to  suits  for  taxes,  June  21,  1889  (35  Int. 
Rev.  Rec,  197). 

Right  of  the  United  States  to  sue  for  taxes.  Set-offs  growing 
out  of  independent  claims  can  not  be  pleaded.  (United  States 
v.  Pacific  R.  R.,  4  Dill.,  66;  see  sec.  951,  p.  36.) 

A  party  claiming  a  credit  which  was  not  presented  to  the 
accounting  officers  of  the  Treasury  can  not  set  it  up  in  an  action 
brought  by  the  United  States  against  him  for  the  recovery  of  a 
debt.  (Railroad  Co.  v.  United  States,  101  U.  S.,  543;  26  Int. 
Rev.  Rec,  165.) 

Sec.  3215.  It  shall  be  the  duty  of  the  Commissioner  of  t„R/^Iat'0rnLas 

T  1     ~T"»  •     1  1  1  !•       1  r*l  n  SUITS,    JOY    gO\  - 

Internal  Kevenue,  with  the  approval  or  the  Secretary  of  eminent  of  om- 
the  Treasury,  to  establish  such  regulations,  not  incon-f"" 
sistent  with  law,  for  the  observance  of  revenue  oflicers, 
district  attorneys,  and  marshals,  respecting  suits  arising 
under  the  internal-revenue  laws  in  which  the  United 
States  is  a  party,  as  may  be  deemed  necessary  for  the  just 
responsibility  of  those  oflicers  and  the  prompt  collection 
of  all  revenues  and  debts  due  and  accrumg  to  the  United 
States  under  such  laws. 

Regulations,  No.  12,  revised. 

The  Solicitor  of  the  Treasury  is  authorized  to  establish  regu- 
lations for  the  observance  of  district  attorneys  and  marshals  in 
suits  in  which  the  United  States  is  a  party,  other  than  those 
arising  under  the  internal-revenue  laws.    (Sees.  377  and  379,  R.  S.) 

Duties  of  district  attorneys  as  to  prosecutions,  etc,  section 
838  R.  S.,  Appendix,  p.  401.) 

Duty  of  collectors  to  look  after  suits.     (T.  D.  702.) 

United  States  attorneys  are  instructed  that  there  should  be 
no  unnecessary  delay  in  proceedings  to  enforce  collection  of 
judgments.     (T.  D.  348,  May  23,  1901.) 

Sec.   3216.  All  judgments  and  monevs  recovered   or    M°neys  r.f°T 

in.  ,        e      p  •  i  i .  ■  in  erect   by  suns  to 

received  tor  taxes,  costs,  forfeitures,  and  penalties,  shall  be  paid  to  coiiec- 

be  paid  to  collectors  as  internal  taxes  are  required  to  betors 

paid. 

The  gross  amount  of  all  moneys  received  for  the  use  of  the 
United  States  is  required  to  be  paid  by  the  officer  or  agent 
receiving  the  same  into  the  Treasury  at  as  early  a  day  as  practi- 
cable, without  any  abatement  or  deduction  on  account  of  salary, 
fees,  costs,  charges,  expenses,  or  claim  of  any  description  what- 
ever. (Sec.  3617,  p.  404,  Appendix.  See  also  sec.  3210,  p.  107, 
and  act  of  May  27,  1908,  p.  108.) 

See  section  3621,  as  amended  by  act  of  May  28, 1896,  page  405. 

Instructions  to  clerks  of  courts  as  to  disposition  of  moneys  in 
the  registry  of  the  court.     (Regulations,  No.  12,  revised,  p.  21.) 

Taxed  costs  payable  to  the  collector.  (United  States  v. 
Wolters  (1892),  51  Fed.  Rep.,  896.) 


to 


112  ASSESSMENTS   AND    COLLECTIONS. 

Costs,  as  well  as  all  other  moneys  collected  in  cases  arising 
under  the  internal-revenue  laws,  are  required  by  the  law  to  be 
paid  over  by  the  court  clerks  to  the  collectors  of  the  districts  in 
which  these  cases  arise.  (T.  D.  (1898),  No.  19306.)  See  notes 
under  section  797,  as  amended,  p.  403. 

Dues  from  deiin-  Sec.  3217.  When  any  collector  fails  either  to  collect  or 
bee ^oieiecteCd0rby  to  render  his  account,  or  to  pay  over  in  the  manner  or 
saies.traint  and  within  the  times  provided  by  law,  the  (First)  Comptroller 
of  the  Treasury  shall,  immediately  after  evidence  of  such 
delinquency,  report  the  same  to  the  Solicitor  of  the 
Treasury,  who  shall  issue  a  warrant  of  distress  against 
such  delinquent  collector,  directed  to  the  marshal  of  the 
district,  expressing  therein  the  amount  with  which  the 
said  collector  is  chargeable,  and  the  sums,  if  any,  which 
have  been  paid  over  by  him,  so  far  as  the  same  are  ascer- 
tainable. And  the  said  marshal  shall,  himself,  or  by  his 
deputy,  immediately  proceed  to  levy  and  collect  the  sum 
which  may  remain  due,  with  five  per  centum  thereon, 
and  all  the  expenses  and  charges  of  collection,  by  distress 
and  sale  of  the  goods  and  chattels,  or  any  personal  effects 
of  the  delinquent  collector,  giving  at  least  five  days' 
notice  of  the  time  and  place  of  sale,  in  the  manner  pro- 
vided by  law  for  advertising  sales  of  personal  property 
on  execution  in  the  State  wherein  such  collector  resides. 
And  the  bill  of  sale  of  the  officer  of  any  goods,  chattels, 
or  other  personal  property,  distrained  and  sold  as  afore- 
said, shall  be  conclusive  evidence  of  title  to  the  purchaser, 
and  prima-facie  evidence  of  the  right  of  the  officer  to 
make  such  sale,  and  of  the  correctness  of  his  proceedings 
in  selling  the  same.  And  for  want  of  goods  and  chattels, 
or  other  personal  effects  of  such  collector,  sufficient  to 
satisfy  any  warrant  of  distress,  issued  as  aforesaid,  the 
real  estate  of  such  collector,  or  so  much  thereof  as  may 
be  necessary  for  satisfying  the  said  warrant,  after  being 
advertised  tor  at  least  three  weeks  next  before  the  time 
of  sale,  in  not  less  than  three  public  places  in  the  collection 
district,  and  in  one  newspaper  printed  in  the  county  or 
district,  if  any  there  be,  shall  be  sold  at  public  auction  by 
the  marshal  or  his  deputy.  Upon  such  sale,  the  marshal 
shall  make  and  deliver  to  the  purchaser  of  the  premises 
sold  a  deed  of  conveyance  thereof,  to  be  executed  and 
acknowledged  in  the  manner  and  form  prescribed  by  the 
laws  of  the  State  in  which  said  lands  are  situated,  and 
said  deed  so  made  shall  invest  the  purchaser  with  all  the 
title  and  interest  of  the  defendant  named  in  said  warrant, 
existing  at  the  time  of  the  seizure  thereof.  And  all 
moneys  that  may  remain  of  the  proceeds  of  such  sale  of 
personal  or  real  property,  after  satisfying  the  said  warrant 
of  distress,  and  paying  the  reasonable  costs  and  charges 
of  sale,  shall  be  returned  to  the  proprietor  of  the  property 
sold  as  aforesaid. 

See  sections  3624  and  3625,  in  Appendix,  pages  407,  408,  as  to 
proceedings  against  officers  failing  to  account  for  public  moneys. 

*  *  *  The  First  Comptroller  of  the  Treasury  shall  hereafter 
be  known  as  Comptroller  of  the  Treasury, 


ASSESSMENTS  AND    COLLECTIONS.  113 

He  shall  perform  the  same  duties  and  have  the  same  powers 
and  responsibilities  (except  as  modified  by  this  act)  as  those 
now  performed  by  or  appertaining  to  the  First  and  Second 
Comptrollers  of  the  Treasury  and  the  Commissioner  of  Customs; 
and  all  provisions  of  law  not  inconsistent  with  this  act,  in  any 
way  relating  to  them  or  either  of  them,  shall  hereafter  be  con- 
strued and  held  as  relating  to  the  Comptroller  of  the  Treasury. 
*  *  *  (Sec.  4,  act  July  31,  1894;  Supp.  IT.  S.  R.  S.,  vol.  2,  p. 
213.) 

Sec.  3218.  Every  collector  shall  be  charged  with  the  collectors  to  be 
whole  amount  of  taxes,  whether  contained  in  lists  trans-  what! g 
mitted  to  him  by  the  Commissioner  of  Internal  Revenue, 
or  by  other  collectors,  or  delivered  to  him  by  his  predeces- 
sor in  of  lice,  and  with  the  additions  thereto,  with  the  par 
value  of  all  stamps  deposited  with  him,  and  with  all 
moneys  collected  for  penalties,  forfeitures,  fees,  or  costs; 
and  he  shall  be  crdited  with  all  payments  into  the  Treasury 
made  as  provided  by  law,  with  all  stamps  returned  by 
him  uncanceled  to  the  Treasury,  and  with  the  amount  of 
taxes  contained  in  the  lists  transmitted  in  the  manner 
heretofore  provided  to  other  collectors,  and  by  them 
receipted  as  aforesaid ;  also  with  the  amount  of  the  taxes 
of  such  persons  as  may  have  absconded,  or  become  insol- 
vent, prior  to  the  day  when  the  tax  ought,  according  to 
the  provisions  of  law,  to  have  been  collected,  and  with  all 
uncollected  taxes  transferred  by  him  or  by  his  deputy  act- 
ing as  collector  to  his  successor  in  office:  Provided ,  That 
it  shall  be  proved  to  the  satisfaction  of  the  Commissioner 
of  Internal  Revenue,  who  shall  certify  the  facts  to  the 
(First)  Comptroller  of  the  Treasury,  that  due  diligence  Due  diligence, 
was  used  by  the  collector.  And  each  collector  shall  also 
be  credited  with  the  amount  of  all  property  purchased  by 
him  for  the  use  of  the  United  wStates,  provided  he  faith- 
fully account  for  and  pay  over  the  proceeds  thereof  upon 
a  resale  of  the  same  as  required  by  law. 

See  note  under  section  3217  as  to  change  from  First  Comp- 
troller to  Comptroller. 

Claims  for  credit.     (Sec.  951,  p.  424,  Appendix.) 

Certificate  of  due  diligence  condition  precedent  to  allowance 
of  credit.     (United  States  v.  Kimball,  101  U.  S.,  726.) 

Question  of  due  diligence  and  other  questions  relative  to  col- 
lectors' accounts  considered.  (United  States  v.  Barton  Able,  15 
Int.  Rev.  Rec,  41,  50.) 

Duplicate  charges  arising  from  the  charging  of  a  collector  with 
assessed  special  taxes  subsequently  paid  by  stamps  are  adjusted 
by  Auditor  of  the  Treasury  Department  through  claims  on  Form 
488,  and  those  arising  from  assessment  of  spirit  taxes  subse- 
quently paid  by  stamps  are  adjusted  through  claims  on  Form 
66A.  Regulations  No.  14,  revised,  pages  16-17.  But  see  Form 
325,  and  column  IO5,  Form  23. 

Claims  for  credit  for  stamps  issued  in  accordance  with  notice 
of  accepted  offers  in  compromise  should  be  made  on  Form  630. 
Regulations  No.  2,  revised,  page  30.     (T.  D.  1399  and  1565.) 

Fractions  of  a  cent  should  never  be  entered  in  the  records  of 
daily  receipts.     (T.  D.  289,  Feb.  25,  1901.) 

See  section  3444,  page  354,  articles  in  bonded  warehouses. 

Sec.  3219.  In  case  of  the  death,  resignation,  or  removal  J^^tor,  elm'co<i- 
of  any  collector,  all  lists  and  accounts  of  taxes  uncollected  lected  balances, 

72170°— 11 8 


114  ASSESSMENTS   AND   COLLECTIONS. 

shall  be  transferred  to  his  successor  in  office  as  soon  as 
such  successor  is  appointed  and  qualified,  and  it  shall  be 
the  duty  of  such  successor  to  collect  the  same. 
Remission  and      Sec.  3220.  The  Commissioner   of   Internal   Revenue, 
taxes,n  penalties,  subject  to  regulations  prescribed  by  the  Secretary  of  the 
etc-  Treasury,  is  authorized,  on  appeal  to  him  made,  to  remit, 

refund,  and  pay  back  all  taxes  erroneously  or  illegally 
assessed  or  collected,  all  penalties  collected  without 
authority,  and  all  taxes  that  appear  to  be  unjustly 
assessed  or  excessive  in  amount,  or  in  any  manner  wrong- 
fully collected;  also  to  repay  to  any  collector  or  deputy 
collector  the  full  amount  of  such  sums  of  money  as  may 
be  recovered  against  him  in  any  court,  for  any  internal 
taxes  collected  by  him,  with  the  cost  and  expenses  of  suit; 
also  all  damages  and  costs  recovered  against  any  assessor, 
assistant  assessor,  collector,  deputy  collector,  or  inspector, 
in  any  suit  brought  against  him  by  reason  of  anything 
done  in  the  due  performance  of  his  official  duty:  Provided, 
That  where  a  second  assessment  is  made  in  case  of  a  list, 
statement,  or  return  which  in  the  opinion  of  the  collector 
or  deputy  collector  was  false  or  fraudulent,  or  contained 
any  understatement  or  undervaluation,  such  assessment 
shall  not  be  remitted,  nor  shall  taxes  collected  under  such 
assessment  be  refunded,  or  paid  back,  unless  it  is  proved 
that  said  list,  statement,  or  return  was  not  false  or  fraud- 
ulent, and  did  not  contain  any  understatement  or  under- 
valuation. 

See  section  989,  page  398,  as  to  certificate  of  probable  cause. 

Abatements  and  refunding  may  also  be  made  to  distillers  in 
cases  of  unavoidable  accident  or  misunderstanding.  (Sec.  3309a, 
p.  204.) 

Until  an  appeal  is  taken  to  the  commissioner  no  suit  whatever 
can  be  maintained  to  recover  back  taxes  illegally  assessed  or 
erroneously  paid.  (United  States  v.  Savings  Bank,  104  U.  S., 
728.) 

The  Government  has  provided  a  complete  system  of  corrective 
justice  in  regard  to  all  taxes  imposed,  founded  upon  the  idea  of 
appeals  within  the  executive  departments.  (United  States  v. 
Pacific  Railroad,  4  Dill.,  66;  Fed.  Cas.,  15983.) 

The  commissioner  possesses  no  equity  power  in  cases  of  abate- 
ment. If  the  tax  is  a  legal  one,  the  commissioner  can  not  abate  it. 
(Decision  No.  180,  36  Int.  Rev.  Rec,  13.) 

A  rejected  claim  may  be  prosecuted  against  the  collector,  and 
an  allowed  claim  not  paid  may  be  sued  for  in  the  Court  of  Claims. 
(United  States  v.  Real  Estate  Savings  Bank,  104  U.  S.  (14  Otto), 
728;  28  Int.  Rev.  Rec,  87.) 

When  the  Commissioner  of  Internal  Revenue  has  rendered  a 
decision  allowing  a  claim,  and  has  issued  his  certificate  accord- 
ingly, but  payment  is  refused  by  the  accounting  officer,  the 
claimant  is  entitled  to  recover  in  a  suit  in  the  Court  of  Claims. 
(Kaufman  v.  United  States,  96  U.  S.,  567,  affirming  11  Ct.  Cls., 
659;  24  Int.  Rev.  Rec,  135.) 

Protest. — It  is  a  principle  universally  recognized  that  an 
action  can  not  be  maintained  for  the  recovery  back  of  money 
paid  in  discharge  of  a  tax  illegally  assessed,  unless  the  payment 
was  made  under  protest.  But  that  principle  has  been  held  by 
the  Commissioner  of  Internal  Revenue  and  other  officers  of  the 
department  as  too  technical  and  too  exacting  for  application  to 
the  refund  of  taxes  under  this  section.  (Real  Estate  Savings 
Bank  v.  United  States  (1880),  16  Ct.  Cls.,  335;  27  Int.  Rev. 
Rec,  154.) 


ASSESSMENTS   AND   COLLECTIONS.  115 

No  written  notice  of  protest  required.  (Wright  v.  Blakeslee, 
101  U.  S.,  174;  20  Int.  Rev.  Rec,  179.) 

Rule  as  to  protest.  (Chesebrough  v.  U.  S.,  192  U.  S.,  253; 
T.  D.,  747;  U.  S.  v.  N.  Y.  and  Cuba  Mail  Steamship  Co.,  200 
U.  S.,  488;  25  Op.  Atty.  Gen.,  605;  26  ibid.,  472.) 

Though  there  is  some  conflict  in  the  dicta  of  the  Supreme 
Court,  the  true  doctrine  is  that,  when  taxes  are  paid  under  pro- 
test or  with  notice  that  the  payor  contends  that  they  are  illegal 
and  intends  to  institute  suit  to  compel  their  repayment,  a  suffi- 
cient foundation  for  suit  to  recover  has  been  established .  Herold 
v.  Kahn  (1908),  159  Fed.  Rep.,  608.) 

The  apprehension  of  being  stopped  in  business  is  sufficient 
duress  to  make  payments  involuntary.  (Swift  Co.  v.  United 
States,  111  U.  S.,  22.) 

In  auditing  and  paying  a  claim  for  a  specific  sum,  for  which 
appropriation  has  been  made  by  Congress,  the  functions  of  the 
Government  officers  are  only  clerical.  (United  States  v.  Louis- 
ville (1898),  169  U.  S.,  249;  affirming  31  Ct.  Cls.,  1.) 

Interest. — United  States  does  not  pay  interest  on  any  claim 
which  is  due,  because  it  is  supposed  to  be  always  ready  to  pay. 
(Stephani's  Case,  1  Lawrence  Dec,  35;  26  Int.  Rev.  Rec,  313.) 

It  is  a  well-settled  principle  that  interest  is  not  allowed  on 
claims  against  the  United  States  unless  the  Government  has 
stipulated  to  pay  interest,  or  it  is  given  by  express  statutory 
provision.  (Angarica  v.  Bayard,  127  U.  S.,  260;  United  States  v. 
New  York,  160  U.S.,  619;  7  Op.  Atty.  Gen.,  523;  9  ibid.,  57,  449. 
See  sees.  963,  966,  Appendix,  p.  394.) 

Where  an  illegal  tax  has  been  collected,  the  citizen  who  has 
paid  it,  and  has  been  obliged  to  bring  suit  against  the  collector, 
is  entitled  to  interest,  in  the  event  of  recovery,  from  the  time  of 
the  illegal  exaction.  (Erskine  v.  Van  Arsdale,  15  Wall.,  75; 
Conant  v.  Kinney  (1908),  162  Fed.  Rep.,  581;  Penn.  Co.,  etc., 
v.  McClain,  collector,  105  Fed.  Rep.,  367;  108  ibid.,  618.) 

When  a  person  accepts  from  the  Government,  without  objec- 
tion, payment  of  the  sum  illegally  exacted,  he  gives  up  his  right 
to  sue  for  interest.     (Stewart  v.  Barnes,  153  U.  S.,  456.) 

Law  relative  to  interest  in  suits  against  collectors  reviewed. 
(Commissioners  of  Sinking  Fund  of  Louisville  v.  Buckner,  48 
Fed.  Rep.,  533.) 

Where  interest  was  allowed  only  from  commencement  of  suit. 
(Burrough  v.  Able,  105  Fed.  Rep.,  366.) 

The  Government  is  not  liable  for  interest  after  final  judgment. 
(United  States  ex  rel.i;.  John  Sherman,  98  U.S. ,567;  25  Int.  Rev. 
Rec,  198;  Schell  v.  Cochran,  107  U.  S.,  626.) 

If  an  appeal  is  taken  from  an  assessment  and  decided  against 
the  appellant,  and  the  tax  is  afterwards  collected,  it  is  not  nec- 
essary to  take  a  second  appeal  after  payment  before  commencing 
suit  to  recover  the  tax.  (San  Francisco  Savings  Society  v.  Cary, 
2  Sawy.,  393;  17  Int.  Rev.  Rec,  109.) 

No  claim  for  refund  necessary  when  abatement  claim  has  been 
made  and  considered  upon  its  merits.  (De  Barry  v.  Dunne,  162 
Fed.  Rep.,  961;  Schwartzchild  &  Sulzberger  Co.  v.  Rucker, 
collector,  143  Fed.  Rep.,  656;  T.D.,974;  Grier  v.  Tucker,  150 Fed. 
Rep.,  657;  Cureton  v.  Rucker  (N.  D.  of  Georgia),  T.  D.,  No. 
1293,  contra,  Hastings  v.  Herold,  184  Fed.  Rep.,  759.) 

Claims  for  refund. — Powers  conferred  upon  the  commissioner 
relative  to  refund  of  taxes.  (Barnett  et  al.  v.  United  States, 
16  Ct.  Cls.,  515;  VIII  Comp.  Dec,  85.) 

Appeals  for  refund  of  taxes  should  be  presented  through  col- 
lectors within  two  years  after  the  tax  is  paid.  Presentation  to 
collector  is  equivalent  to  presentation  to  the  commissioner. 
(Real  Estate  Savings  Bank  v.  The  United  States,  16  Ct.  Cls.,  335; 
27  Int.  Rev.  Rec,  153;  104  U.  S.,  728;  28  Int.  Rev.  Rec,  27.) 

No  authority  to  remit  50  per  cent  penalty  unless  illegally  col- 
lected (VI  Coinp.  Dec,  763;  8  ibid.,  670.) 

The  words  wrongfully  collected  do  not  give  jurisdiction  for  re- 
funding further  than  the  word  illegally.     No  equity  powers  con- 


116  ASSESSMENTS   AND   COLLECTIONS. 


ferred  on  the  Commissioner  of  Internal  Revenue.     (Ridgway 
Case,  16  Op.  Atty.  Gen.,  667.) 

Commissioner  authorized,  not  obliged,  to  refund.  (13  Op. 
Atty.  Gen.,  439.) 

Right  of  commissioner  to  reconsider  claim  for  refund  and 
revoke  allowance  before  payment.  (Ridgwav  v.  United  States, 
18  Ct.  Cls.,  707;  29  Int.  Rev.  Rec,  197.) 

What  constitutes  a  final  award  by  the  commissioner.  (Stotes- 
bury  v.  The  United  States,  23  Ct.  Cls.,  285;  34  Int.  Rev.  Rec, 
142;  146  U.  S.,  196.) 

Right  of  commissioner  to  refund,  notwithstanding  advice  of 
secretary  to  the  contrary.  (Sybrandt  v.  United  States,  19  Ct. 
Cls.,  461;  30  Int.  Rev.  Rec,  135.) 

Reopening  rejected  claims  for  refunding.  (14  Op.  Atty.  Gen., 
275;  18  Int.  Rev.  Rec,  28.) 

The  commissioner  is  not  precluded  from  allowing  a  claim  for 
refund,  because  a  former  commissioner  has  rejected  a  claim  for 
abatement.     (IX  Comp.  Dec,  354.) 

The  commissioner  is  authorized  to  reconsider  and  allow  a 
claim  which  he  had,  through  error  of  law,  previously  rejected. 
(XI  Comp.  Dec,  676.) 

Reconsideration  of  claim  for  taxes  after  judgment.  (25  Op. 
Atty.  Gen.,  605.) 

United  States  not  liable  for  unauthorized  wrongs  done  by 
revenue  officers.  (United  States  v.  Cummings;  appeal  from 
Court  of  Claims,  35  Int.  Rev.  Rec,  142;  130  U.  S.,  453.) 

The  general  principle  is  that  the  Government  can  not  be  held 
liable  for  unauthorized  wrongs  inflicted  by  officers,  though 
occurring  while  they  arc  engaged  in  the  discharge  of  official 
duties.  (Joel  Mann  v.  United  States,  32  Ct.  Cls.,  581;  Christie- 
Street  Commission  Co.  v.  United  States  (1904),  129  Fed.  Rep., 
506.) 

An  application  for  the  refund  of  taxes,  though  informal  or 
defective,  may  be  regarded  as  a  claim,  so  far  at  least  as  to  be  a 
foundation  for  an  amendment.     (14  Op.  Atty.  Gen.,  615.) 

Where  a  distiller  in  consequence  of  the  destruction  of  the 
stamp  is  forced  to  affix  a  new  one,  the  commissioner,  on  proof  of 
these  facts,  may  direct  the  price  of  the  second  stamp,  or  rather 
the  tax  thus  a  second  time  exacted,  to  be  refunded.  (13  Op. 
Atty.  Gen.,  574.) 

The  commissioner  has  no  authority  to  refund  to  a  surety  on  a 
distiller's  bond  who  has  paid  a  judgment  recovered  against  him 
thereon  the  amount  of  such  judgment,  when  the  tax  upon  which 
this  recovery  was  had  was  not  illegally  assessed,  and  the  only 
claim  for  refund  is  founded  on  the  allegation  that  the  surety  was 
not  liable  therefor  on  his  bond.  (Seat  v.  United  States  (1883), 
18  Ct.  Cls.,  458.) 

Refund  to  a  surety  who  paid  the  tax.     (VII  Comp.  Dec,  361.) 

Where  the  Commissioner  of  Internal  Revenue,  in  a  case 
within  the  scope  of  his  authority  and  jurisdiction,  has  ordered  a 
refund,  a  court  can  not  inquire  as  to  the  sufficiency  of  the  evi- 
dence before  him.  (Woolner  v.  United  States,  13  Ct.  Cls.,  355; 
24  Int.  Rev.  Rec,  181.) 

Neither  the  Comptroller  of  the  Treasury  nor  any  accounting 
officer  lias  authority  to  review  the  commissioner's  decision. 
(Bank  of  Greeneastle  v.  United  States,  15  Ct.  Cls.,  225;  26  Int. 
Rev.  Rec,  126.) 

Decisions  by  the  Commissioner  of  Internal  Revenue,  in  cases 
of  refunding  taxes,  are  binding,  and,  in  the  absence  of  fraud  or 
mistake  in  calculation,  not  subject  to  revision.  (Dugan  v. 
United  States,  34  Ct.  Cls.,  458;  T.  D.(1899),  Xo.  21285.  See  also 
Davidson  r.  United  States,  21  Ct.  Cls.,  298;  Nixon  v.  United 
States,  18  Ct.  Cls.,  448;  29  Int.  Rev.  Rec,  157;  Louisville  v. 
United  State-,  :;i  Ct.  Cls.,  1;  Edison,  etc.,  Co.  v.  U.  S.,  38  Ct. 
<  1-  .  L'08.) 

When  a  particular  authority  is  confided  to  a  public  officer,  to 
be  exercised  by  him  in  his  discretion  upon  an  examination  of 
facts  of  which  he  is  made  the  judge,  his  decision  upon  the  facta 


ASSESSMENTS  AND  COLLECTIONS.  117 

is,  in  the  absence  of  any  controlling  provision  of  law,  absolutely 
conclusive  as  to  the  existence  of  those  facts.  (Allen  v.  Blunt, 
Fed.  Cas.,  No.  215;  3  Story,  C.  C,  745;  cited  with  approval  in 
U.  S.  v.  Wright,  11  Wall.,  648. \ 

An  allowance  by  the  commissioner  under  this  section  of  a 
claim  for  refund  of  taxes  erroneously  collected  is  conclusive  as 
to  the  facts  upon  which  the  allowance  is  made,  but  not  as  to 
questions  of  law  arising  therein.  (Decision  by  Compt.  Tracewell, 
Sept.  21,  1899;  VI  Comp.  Dec,  259.) 

Judgments  against  collectors. — Under  section  3220,  the  com- 
missioner is  authorized  to  pay  to  the  plaintiff  the  amount  of  a 
judgment  recovered  against  a  collector  of  internal  revenue  for 
damages  for  a  seizure  of  property  for  an  alleged  violation  of  the 
internal-revenue  laws,  and  is  not  restricted  to  the  payment  of 
euch  amount  to  the  collector.  Judgment  may  be  paid  without 
certificate  of  probable  cause.  (United  States  v.  Frerichs,  124 
U.  S.,  315;  34  Int.  Rev.  Rec,  39.) 

Accounts  for  judgments  against  collectors,  appropriation  neces- 
sary for  payment.     (VII  Comp.  Dec.  471.) 

A  judgment  against  a  collector  maybe  paid  to  the  claimant  or 
to  the  collector.     (34  Int.  Rev.  Rec,  39.) 

Regulation  relative  to  transmitting  claims  for  refund  to  Sec- 
retary.   (Dupasseur  v.  United  States,  19  Ct.  Cls.,  1.) 

As  to  suits  to  enforce  allowances.  (Boehm  v.  United  States, 
21  Ct.  Cls.,  290.) 

Various  acts  of  Congress  relative  to  refund  commented  upon. 
(White  v.  Arthur,  10  Fed.  Rep.,  80.) 

Instructions  relative  to  the  preparation  of  claims.  (Reg.  No. 
14,  revised.) 

Circular  No.  174,  dated  October  30,  1877,  relative  to  the  taking 
of  additional  testimony  in  support  of  claims  for  abatement  or 
refund  of  taxes. 

The  filing  of  a  claim  for  the  abatement  of  a  tax  alleged  to  have 
been  erroneously  assessed  does  not  operate  as  a  suspension  of  the 
collection  of  the  tax.     (Regulations  No.  14,  revised,  p.  16.) 

Attorneys  duly  registered  in  the  Treasury  Department,  and 
filing  powers  of  attorney,  will  be  recognized  in  the  prosecution 
of  refunding  claims.     (T.  D.  159.) 

Refunding  tax  on  contingent  beneficial  interests  under  sec- 
tion 3,  act  of  June  27,  1902.  "An  act  to  provide  for  refunding 
taxes  paid  upon  legacies  and  bequests  for  uses  of  a  religious,  char- 
itable, or  educational  character,  for  the  encouragement  of  art, 
and  so  forth."  See  Department  Circular  No.  86  (Int.  Rev. 
No.  630)  as  modified  by  the  opinion  of  the  Attorney  General  of 
August  1,  1902.     (T.  D.  570  and  T.  D.  595.) 

Sec.  3221  [as  amended  hy  sec.  6,  act  of  Mar.  1,  1879  ^K^1^ 
(20  Stat.,  327).]  The  Secretary  of  the  Treasury,  upon  thestroyed. 
production  to  him  of  satisfactory  proof  of  the  actual 
destruction  by  accidental  fire  or  other  casualty,  and  with- 
out any  fraud,  collusion,  or  negligence  of  the  owner 
thereof,  of  any  distilled  spirits,  while  the  same  remained 
in  the  custody  of  any  officer  of  internal  revenue  in  any 
distillery  warehouse,  or  bonded  warehouse  of  the  United 
States  and  before  the  tax  thereon  has  been  paid,  may 
abate  the  amount  of  internal  taxes  accruing  thereon,  and 
may  cancel  any  warehouse  bond,  or  enter  satisfaction 
thereon,  in  whole  or  in  part,  as  the  case  may  be.  And 
if  such  taxes  have  been  collected  since  the  destruction  of 
said  spirits,  the  said  Secretary  shall  refund  the  same  to 
the  owners  thereof  out  of  any  moneys  in  the  Treasury 
not  otherwise  appropriated.  And  when  any  distilled 
spirits  are  hereafter  destroyed  hy  accidental f  re  or  other  cas- 
ualty, without  any  fraud,  collusion,  or  negligence  of  the  owner 


118  ASSESSMENTS  AND  COLLECTIONS. 

thereof,  after  the  time  when  the  same  should  have  been  drawn 
off  by  the  ganger  and  placed  in  the  distillery  warehouse  pro- 
vided by  law,  no  tax  shall  be  collected  on  such  spirits  so 
destroyed,  or  if  collected,  it  shall  be  refunded  upon  the  pro- 
duction of  satisfactory  proof  that  the  spirits  were  destroyed 
as  herein  specified. 

This  section  provides  allowance  for  loss  by  accidental  fire  or 
other  unavoidable  accident  when  the  manufacture  of  spirits  has 
been  completed  and  they  are  destroyed  before  being  drawn  off 
and  carried  into  the  distillery  warehouse  and  when  the  whisky 
is  destroyed  in  the  distillery  warehouse. 

Section  8,  act  of  May  28,  1880  (sec.  3309a,  p.  204),  releases  the 
distiller  from  the  payment  of  tax  upon  spirits  destroyed  by  acci- 
dent while  in  the  process  of  manufacture. 

If  the  spirits  are  removed  from  a  distillery  warehouse  to  a 
manufacturer's  warehouse,  and  are  lost  in  the  course  of  such 
removal,  section  15,  of  the  act  of  May  28,  1880,  provides  for 
remission  of  the  tax.     (Sec.  34335,  p.  336). 

A  similar  provision  is  made  where  spirits  are  removed  from  a 
distillery  warehouse  for  export.  (Act  Dec.  20,  1879,  sec.  33306, 
p.  223.) 

(Greenbrier  Distillery  Co.  v.  Johnson,  collector,  et  al.,  88  Fed. 
Rep.,  638.) 

This  section  applicable  to  brandy  stored  in  special  bonded 
warehouses.     (Sec.  5,  act  Mar.  3,  1877,  p.  193.) 

Secretary  Manning's  construction  of  the  law  relative  to  abate- 
ment of  tax  on  spirits,  said  to  have  been  lost  from  packages  in 
warehouse.     (31  Int.  Rev.  Rec,  189.) 

Allowance  for  loss  in  warehouse.  (Circ.  No.  625;  sec.  3294a 
p.  185,  and  sec.  32946,  p.  187.) 

Leakage  not  casualty.  (Revised  ruling  of  the  department 
May  25,  1894,  giving  historical  review  of  the  laws;  40  Int.  Rev. 
Rec.,  173.) 

The  collapse  of  a  barrel  filled  with  whisky  from  the  pressure 
of  other  barrels  superimposed  upon  it  is  not  a  casualty  within 
the  meaning  of  the  law.  (Letter  from  Secretary  of  the  Treasury 
to  Commissioner  Internal  Revenue,  July  24,  1894;  40  Int.  Rev. 
Rec,  237.) 

"Casualty"  means  an  accident;  an  event  not  to  be  foreseen 
or  guarded  against.  Excessive  and  unusual  summer  heat  is  not 
a  casualty,  neither  are  undiscovered  worm  holes  in  whisky  bar- 
rels a  casualty  within  the  meaning  of  this  section.  (Crystal 
Springs  Distiliing  Co.  v.  Cox,  collector,  circuit  court  Kentucky, 
1891;  47  Fed.  Rep.,  693;  37  Int.  Rev.  Rec,  328.)  Decision 
affirmed,  circuit  court  of  appeals,  1892.     (49  Fed.  Rep.,  555.) 

Unavoidabla  casualty  signifies  events  or  accidents  which 
human  prudence,  foresight,  and  sagacity  can  not  prevent. 
(Wells  v.  Castees,  3  Gray,  325.) 

Proof  required  in  cases  of  destruction  of  distilled  spirits  by 
incendiaries.     (43  Int.  Rev.  Rec,  285.) 

Denial  of  claim  for  refund  of  tax  on  spirits  alleged  to  have 
been  destroyed  by  incendiary  fire  while  in  warehouse;  insuffi- 
cient evidence.  (Letter  from  Secretary  of  the  Treasury,  Oct.  15, 
1895;  42  Int.  Rev.  Rec,  49.) 

"Where  spirits  are  withdrawn  from  warehouse  tax  paid  and 
stamped,  and  afterwards  destroyed  by  accident,  the  tax  can  not 
be  refunded.     (T.  D.  18996,  1898.) 

No  provision  authorizing  relief  when  spirits  are  stolen  from 
warehouse.     (T.  D.  19520,  1898.) 

Di -tilled  spirits  seized  by  an  internal-revenue  officer  and  lost 
by  his  negligence,  not  lost  through  casualty,  within  section  3221. 
(U.  S.  v.  Sisk  (C.  C.  A.);  176  Fed.  Rep.,  885.) 

Can  abate  the  tax  on  spirits  which  have  been  in  bonded  ware- 
house beyond  bonded  period.  (18  Op.  Atty.  Gen.,  379;  32  Int. 
Rev.  Rec,  94.) 


ASSESSMENTS  AND   COLLECTIONS.  119 

The  destruction  of  spirits  stored  in  distillery  warehouses  by 
fire  while  in  the  warehouse  constituted  a  "removal."     (48  Fed. 
Rep.,  714,  reversed;  United  States  v.  Peace  et  al.,  53  Fed.  Rep., 
999.)     See  Insurance  Companies  v.  Thompson  (95  U.  S.  (5  Otto) 
547). 

If  accounting  officers  refuse  to  allow  a  claim  after  the  Secre- 
tary's decision  in  its  favor,  claimant  can  recover  in  Court  of 
Claims.  _  (Hoffheimer  Bros.  v.  United  States,  20  Ct.  Cls.,  371.) 

Liability  of  obligors  on  warehousing  bonds  to  pay  the  tax  on 
spirits  destroyed  in  a  distillery  warehouse  can  be  relieved  only 
in  the  manner  prescribed  by  the  statute.  (Farrell  v.  United 
States,  8  Biss.,  259;  99  U.  S.  (9  Otto),  221;  25  Int.  Rev.  Rec,  83.) 

The  statute  (sec.  3221)  contemplates  that  the  burden  of  proof 
shall  be  upon  the  applicant.  (Opinion  of  Solicitor  of  the  Treas- 
ury. Letter  to  Secretary  of  the  Treasury  of  Oct.  21,  1885,  in  re 
claim  of  John  G.  Roach.) 

A  revocation  of  an  order  for  abatement  under  section  3221, 
Revised  Statutes,  does  not  restore  the  previous  liability  of  the 
obligors  on  the  warehousing  bond  to  pay  the  tax  on  the  spirits 
claimed  to  have  been  destroyed.  (United  States  v.  Alexander 
etal.,  110  U.  S.,  325.) 

Regulations  and  instructions  governing  the  abatement  of  taxes 
on  spirits  destroyed  by  fire,  or  other  casualty.  Regulations, 
No.  7,  revised,  and  No.  14,  revised. 

Spirits  destroyed  by  fire.  (Freeman  v.  U.  S.,  157  Fed.  Rep., 
195.) 

Sec.  3222.  The  preceding  section  shall  take  effect  in  all  fe^eof0a?ecedinf" 
cases  of  loss  or  destruction  of  distilled  spirits  as  aforesaid  section. 
which  have  occurred  since  January  one,  eighteen  hundred 
and  sixty-eight. 

This  does  not  embrace  the  later  addition  made  to  section  3221 
by  act  of  Mar.  1,  1879,  section  6,  which  by  its  own  terms  ex- 
pressly relates  only  to  spirits  thereafter  destroyed.  (See  itali- 
cized portion  of  sec.  3221,  p.  117.) 

Section  5  of  the  act  of  June  7,  1906  (34  Stat.,  215),  page  233, 
extends  the  provisions  of  sections  3221  and  3223,  Revised  Stat- 
utes, as  amended,  to  grape  brandy  withdrawn  for  use  in  the  for- 
tification of  sweet  wines,  and  which,  prior  to  such  use,  is  acci- 
dentally destroyed  by  fire  or  other  casualty  while  stored  in  the 
fortifying  room  on  the  winery  premises. 

Sec.  3223  [as  amended  by  sec.  3,  act  of  Mar.  1,  1879  (20 los^efrit^afs  gf 
Stat.,  327).]  When  the  owners  of  distilled  spirits  in  the  demnmedVy  In- 
cases provided  for  by  the  two  preceding  sections  may  besurance* 
indemnified  against  such  tax  by  a  valid  claim  of  insurance 
for  a  sum  greater  than  the  actual  value  of  the  distilled  spirits 
before  and  without  the  tax  being  paid,  the  tax  shall  not  be 
remitted  to  the  extent  of  such  insurance. 

The  liability  for  tax  on  bonded  spirits  is  an  insurable  interest* 
(Insurance  Company  v.  Thompson  et  al.,  95  U.  S.  (5  Otto),  547.) 

An  insurance  policy  upon  whisky  in  bond,  without  reference 
to  the  Government  tax,  entitles  the  assured  to  include  the  tax 
in  his  recovery  in  case  of  loss,  if  the  assured  is  liable  for  the  tax. 
(Iledger  v.  Union  Insurance  Co.,  circuit  court,  district  of  Ken- 
tucky,^ Fed.  Rep.,  498.) 

In  view  of  the  foregoing  statute  and  the  decisions  above  cited, 
it  is  held,  in  cases  where  it  is  not  expressly  stipulated  in  the 
policies  of  insurance  that  the  Government  tax  is  not  included  in 
the  insurance  on  the  spirits,  that  the  owner  of  the  spirits  is  not 
entitled  to  any  allowance,  under  section  3221,  on  so  much  of  the 
tax  as  is  equal  to  the  valid  insurance  in  excess  of  the  actual  value 
of  spirits,  exclusive  of  the  tax. 


120  ASSESSMENTS  AND  COLLECTIONS. 

strafn  Assess6-     Sec.  3224.  No  suit  for  the  purpose  of  restraining  the 
ment  or  coiiec- assessment  or  collection  of  any  tax  shall  be  maintained 

tion  of  taxes.         •  j 

in  any  court. 

The  constitutionality  of  a  law  can  not  be  inquired  into  in  an 
injunction  suit.  (The  Delaware  Railroad  Co.  v.  Prettyman,  col- 
lector, 17  Int.  .Rev.  Rec,  99.) 

Allegations  in  a  bill  that  an  assessment  is  irregular  and  void 
do  not  constitute  any  ground  for  an  injunction  to  restrain  the 
collection  of  the  assessment.  (Alkan  v.  Bean,  collector,  23  Int. 
Rev.  Rec,  351;  8  Biss.,  83.) 

A  bill  in  equity  will  not  lie  to  enjoin  a  collector  of  internal 
revenue  from  collecting  a  tax  assessed  by  the  commissioner, 
although  the  tax  is  alleged  in  the  bill  to  have  been  illegally 
assessed.  (Snyder  v.  Marks,  109  U.  S.,  189;  29  Int.  Rev.  Rec", 
403;  Moore  v.  Miller,  5  App.  Cas.,  D.  C,  413.) 

A  collector  can  not  be  restrained  from  collecting  an  assessment 
by  injunction.  (Pullan  v.  Kissinger,  2  Abb.  (U.  S.),  94;  11  Int. 
Rev.  Rec,  197;  Kensett  v.  Stivers,  27  Int.  Rev.  Rec,  1;  18 
Blatch.,  397;  10  Fed.  Rep.,  517;  State  Railroad  Tax  Cases,  92 
U.  S.  (2  Otto),  613;  Keely  v.  Sanders,  99  U.  S.,  443;  Robbins 
v.  Freeland,  collector,  14  Int.  Rev.  Rec,  28;  United  States  v. 
Hodson,  14  Int.  Rev.  Rec,  100;  Roback  v.  Taylor  (1866),  4 
Int.  Rev.  Rec,  170.) 

Purely  injunction  bills  can  not  be  maintained  to  restrain  the 
collection  of  taxes  upon  the  sole  ground  of  their  unconstitution- 
ality.    (Allen  v.  Pullman's  Palace  Car  Co.,  139  U.  S.,  658.) 

A  collector  can  not  be  enjoined  from  collecting  a  tax,  but  a 
suit  to  recover  the  money  back  when  illegally  collected  is 
authorized.     (Armour  v.  Roberts,  151  Fed.  Rep.,  846.) 

It  is  contrary  to  every  principle  of  equity  jurisprudence  that 
the  collection  of  taxes  on  personal  property  should  be  stayed  by 
injunction.  (Nye  v.  Washburn,  western  district  of  Wis.  125 
Fed.  Rep.,  818.) 

The  courts  will  not  interfere  by  mandamus  with  the  executive 
officers  of  the  Government  in  the  exercise  of  their  ordinary  offi- 
cial duties.  (United  States  v.  Black,  Commissioner  of  Pensions, 
128  U.  S.,40.) 

The  court  in  this  case  followed  an  earlier  decision  of  Decatur 
v.  Paulding  (14  Pet.,  497),  and  made  clear  the  distinction  be- 
tween the  mere  ministerial  act  of  the  executive  officer,  which 
may  be  controlled  by  the  courts  by  mandamus,  and  an  act  in 
the  performance  of  which  an  officer  is  vested  with  quasi-judicial 
discretion. 

In  matters  which  require  an  executive  officer  to  exercise 
judgment  or  discretion,  no  rule  will  issue  for  a  mandamus. 
,  (Carrick  v.  Lamar,  116  U.  S.,  423.) 

When  mandamus  may  issue.  (Marbury  r.  Madison,  1  Cranch 
(U.  S.),  137;  United  States  y.  Schurz,  102  U.  S.,  378.) 

A  bill  for  a  mandatory  injunction,  requiring  a  collector  to 
accept  an  export  bond  for  spirits  in  a  bonded  warehouse  after 
the  bonded  period  has  expired,  and  allow  their  withdrawal  for 
export  without  payment  of  the  tax,  is  in  effect  a  bill  to  restrain 
the  collection  of  taxes,  which  the  court  is  forbidden  to  entertain. 
(Miles  v.  Johnson,  collector,  59  Fed.  Rep.,  38;  40  Int.  Rev. 
Rec,  10.) 

A  collector  can  not  be  restrained  by  injunction  from  making  a 
seizure.    (See  under  sec.  3163,  p.  75.) 

taSxes  ^fiMted  ^EC'  3225.  When  a  second  assessment  is  made  incase 
under  second  as- of  any  list,  statement,  or  return,  which  in  the  opinion  of 
T^Z\'  ^tothe  collector  or  deputy  collector  was  false  or  fraudulent, 
fraud,  etc.  or  contained  any  understatement  or  undervaluation,  no 

taxes  collected  under  such  assessment  shall  be  recovered 
by  any  suit,  unless  it  is  proved  that  the  said  list,  state- 


ASSESSMENTS  AND   COLLECTIONS.  121 

ment,  or  return  was  not  false  nor  fraudulent,  and  did  not 
contain  any  understatement  or  undervaluation. 

Bergdoll  v.  Pollock,  (95  U.  S.,  337). 

Sec.  3226.  No  suit  shall  be  maintained  in  any  court  forerSuit  for  recov- 
the  recovery  of  any  internal  tax  alleged  to  have  been  wrongfully     coi- 
erroneously  or  illegally  assessed  or  collected,  or  of  anylected' 
penalty  claimed  to  have  been  collected  without  authority, 
or  of  any  sum  alleged  to  have  been  excessive  or  in  any 
manner  wrongfully  collected,  until  appeal  shall  have  been 
duly  made  to  the  Commissioner  of  Internal  Revenue,  ac- 
cording to  the  provisions  of  law  in  that  regard,  and  the 
regulations  of  the  Secretary  of  the  Treasury  established 
in  pursuance  thereof,  and  a  decision  of  the  Commissioner 
has  been  had  therein:  Provided,  That  if  such  decision  is 
delayed  more  than  six  months  from  the  date  of  such  ap- 
peal, then  the  said  suit  may  be  brought,  without  first 
having  a  decision  of  the  Commissioner  at  any  time  within 
the  period  limited  in  the  next  section. 

In  Hicks  v.  James'  Administratrix,  48  Fed.,  542,  the  plaintiff 
brought  suit  to  recover  certain  taxes  which  it  was  claimed  had 
been  illegally  exacted,  and  the  question  as  to  whether  there  had 
been  a  proper  appeal  made  to  the  commissioner  before  the  suit 
was  instituted  was  raised,  and  the  difference  between  an  appeal 
taken  under  Forms  46  and  47  clearly  shown.  The  case  was 
later  affirmed  by  the  Supreme  Court.  (James'  Administratrix 
v.  Hicks,  110  U.  S.,  272;  Hastings  v.  Herold,  184  Fed.  Rep.,  759.) 

In  extending  jurisdiction  to  United  States  courts  by  the  act 
of  March  3,  1887,  the  provisions  of  sections  3226  and  3227,  Re- 
vised Statutes,  were  not  abrogated.  (Christie  Street  Commis- 
sion Co.  v.  U.  S.,  126  Fed.  Rep.,  991;  affirmed  129  Fed.  Rep., 
506.) 

A  suit  against  the  collector  for  the  recovery  of  taxes  is  in 
reality  a  suit  against  the  United  States  upon  an  implied  con- 
tract to  pay  that  which  has  been  unlawfully  taken.  (Armour 
v.  Roberts(1907),  151  Fed.  Rep.,  846). 

As  the  right  to  sue  the  United  States  through  its  collectors, 
to  recover  taxes  alleged  to  have  been  illegally  collected,  is  only 
a  remedy  given  by  statute,  no  such  right  exists  unless  the  con- 
ditions prescribed  by  sections  3226,  3227  are  strictly  complied 
with.  (Commissioners  of  the  Sinking  Fund  of  Louisville  v. 
Buckner,  48  Fed.  Rep.,  533;  Schmitt  v.  Trowbridge,  collector, 
24  Int.  Rev.  Rec,  381.) 

The  common-law  right  to  sue  a  revenue  officer  for  the  recovery 
of  taxes  illegally  exacted  has  been  superseded  by  statute,  and  the 
remedy  accorded  thereby  is  deemed  to  be  exclusive.  (Snyder  v. 
Marks,  109  U.  S.,  189;  Schoenfeld  v.  Hendricks,  152  U.  S.,  691.) 

In  the  absence  of  a  statutory  rule  to  the  contrary,  the  defense 
of  a  statute  of  limitations,  which  is  not  raised  either  in  plead- 
ing, or  on  the  trial,  or  before  judgment,  can  not  be  availed  of. 
(Retzer  v.  Wood,  collector,  109  U.  S.,  185.) 

A  promise  on  the  part  of  a  collector  of  taxes  to  repay  a  tax 
illegally  collected  and  paid  only  under  protest  can  not  be  implied 
where  statute  makes  it  the  duty  of  such  officer  to  pay  into  the 
public  Treasury  without  any  deduction  on  account  of  claims  of 
any  description  the  gross  amount  that  he  received. 

The  prohibition  that  no  suit  shall  be  maintained  in  any  court 
to  recover  a  tax  illegally  assessed,  except  on  certain  condi- 
tions stated  in  the  section,  operates  on  all  suits  brought  subse- 
quently to  the  time  fixed  by  the  act  for  it  to  take  effect,  and  on 
suits  brought  in  State  courts  as  well  as  in  Federal.  (The  Col- 
lector v.  Hubbard,  12  Wall.,  1.) 


122  ASSESSMENTS  AND   COLLECTIONS. 

Upon  an  application  by  the  United  States  for  an  order  upon  a 
receiver  to  pay  an  assessment,  the  receiver  may  show  that  the 
assessment  was  erroneous  or  illegal,  without  regard  to  the  lapse 
of  time  or  to  whether  there  has  been  an  appeal  to  the  Commis- 
sioner of  Internal  Revenue.  (United  States  v.  Nebraska  Distil- 
ling Co.  (1897),  circuit  court  of  appeals,  80  Fed.  Rep.,  285.) 

Limitation  as  Sec  3227.  No  suit  or  proceeding  for  the  recovery  of  any 
coverytSof°taxes internal  tax  alleged  to  have  been  erroneously  or  illegally 
EXr^  co1' assessed  or  collected,  or  of  any  penalty  alleged  to  nave 
been  collected  without  authority,  or  of  any  sum  alleged  to 
ha  ve  been  excessive  or  in  any  manner  wrongfully  collected, 
shall  be  maintained  in  any  court  unless  the  same  is  brought 
within  two  years  next  after  the  cause  of  action  accrued: 
Provided,  That  actions  for  such  claims  which  accrued  prior 
to  June  six,  eighteen  hundred  and  seventy-two,  may  be 
brought  within  one  year  from  said  date;  and  that  where 
any  such  claim  was  pending  before  the  Commissioner,  as 
provided  in  the  preceding  section,  an  action  thereon  may 
be  brought  within  one  year  after  such  decision  and  not 
after.  But  no  right  of  action  which  was  already  barred 
by  any  statute  on  the  said  date  shall  be  revived  by  this 
section. 

The  words  "cause  of  action  "  mean  the  right  of  action.  (Wright 
v.  Blakeslee,  101  U.  S.,  174;  26  Int.  Rev.  Rec,  179.) 

As  to  claim  pending  before  commissioner  June  6,  1872.  (James 
v.  Hicks,  110  U.S.,  272;) 

Jurisdiction.    (City  of  Philadelphia  v.  Collector,  5  Wall.,  720.) 

State  statute  of  limitations  as  affected  by  the  Federal  statute 
of  limitations.     (Braun  v.  Sauerwein,  10  Wall.,  218.) 

A  person  can  not  recover  from  an  internal-revenue  collector 
taxes  paid  which  were  in  fact  due,  even  though  the  manner  of 
their  assessment  and  collection  was  unauthorized.  (Schafer  v. 
Craft,  144  Fed.  Rep.,  907.) 

Suits  must  be  brought  within  two  years  after  the  cause  of 
action  accrued.  (Cheatham  v.  United  States,  92  U.  S.,  85;  22 
Int.  Rev.  Rec,  30;  Kings  County  Savings  Institution  v.  Blair, 
116  U.  S.,  200;  32  Int.  Rev.  Rec,  30;  Commissioners  of  the 
Sinking  Fund  of  Louisville  v.  Buckner,  48  Fed.  Rep.,  533; 
Coblens  v.  Abel,  Woolw.  293,  Fed.  Cas.  No.  2926;  Christie-Street 
Commission  Co.  v.  United  States,  C.  C.  A.  136  Fed.  Rep.  326, 
affirming  129  Fed.  Rep.,  506;  Farrell  v.  United  States,  167  Fed. 
Rep.,  639.) 

The  right  of  action  accrues  at  the  expiration  of  six  months 
after  an  appeal  without  action  thereon  and  becomes  barred  in 
two  years  thereafter.  (Schwartzchild  &  Sulzerbenjer  v.  Rucker, 
collector  (1906),  U.  S.  Circuit  Court,  northern  district  of  Ga., 
143  Fed.  Rep.,  656;  T.  D.,  974.) 

No  officer  of  the  Government  is  authorized  to  waive  the  statute 
of  limitations  imposed  in  favor  of  the  Government.  (Christie- 
Street  Commission  Co.  v.  Onited  States,  L29  Fed.  Rep...  506.) 

ciaima  for  m-     Skc  3228.  All  claims  for  the  refunding  of  any  internal 
fim.iin^   iimiiu-1;)X  ;1 1|(. ,,.,., |  {()  ]iavo  been  erroneously  or  illegally  assessed 

or  collected,  or  of  any  penalty  alleged  to  have  been  col- 
lected without  authority,  or  of  any  sum  alleged  to  have 
been  excessive  or  in  any  manner  wrongfully  collected, 
must  bo  presented  to  the  Commissioner  of  Internal 
Revenue  within  two  years  next  alter  tlie  cause  of  action 
accrued:  Provided,  That  claims  which  accrued  prior  to 
June  six,  eighteen  hundred  and  seventy-two,  may  be 
presented  to  the  Commissioner  at  any  time  within  one 


ASSESSMENTS   AND   COLLECTIONS.  123 

year  from  said  date.  But  nothing  in  this  section  shall 
be  construed  to  revive  any  right  of  action  which  was 
already  barred  by  any  statute  on  that  date. 

Informal  application  regarded  as  a  claim  within  the  meaning 
of  this  section.     (14  Op.  Atty.  Gen.,  615.)  _ 

When  this  section  does  not  apply.  This  limitation  does  not 
apply  to  claims  for  the  redemption  of  stamps.  (15  Op.  Atty. 
Gen.,  426.) 

This  limitation  does  not  apply  to  claims  under  section  3221, 
page  117. 

Section  322S  does  not  apply  to  claims  for  refund  of  legacy  taxes 
under  section  3,  act  of  June  27,  1902.     (13  Comp.  Dec,  707.) 

Claims  for  taxes  recovered  by  judgments  should  be  presented 
within  two  years  after  date  of  judgment. 

Sec.  3229.  The  Commissioner  of  Internal  Revenue,  ComPr°mises. 
with  the  advice  and  consent  of  the  Secretary  of  the  Treas- 
ury, may  compromise  any  civil  or  criminal  case  arising 
under  the  internal-revenue  laws  instead  of  commencing 
suit  thereon;  and,  with  the  advice  and  consent  of  the  said 
Secretary  and  the  recommendation  of  the  Attorney- 
General,  he  may  compromise  any  such  case  after  a  suit 
thereon  has  been  commenced.  Whenever  a  compromise 
is  made  in  any  case  there  shall  be  placed  on  file  in  the 
office  of  the  Commissioner  the  opinion  of  the  Solicitor  of 
Internal  Revenue,  or  of  the  officer  acting  as  such,  with  his 
reasons  therefor,  with  a  statement  of  the  amount  of  tax 
assessed,  the  amount  of  additional  tax  or  penalty  im- 
posed by  law  hi  consequence  of  the  neglect  or  delinquency 
of  the  person  against  whom  the  tax  is  assessed,  and  the 
amount  actually  paid  in  accordance  with  the  terms  of  the 
compromise. 

Compromises  after  judgment,  remissions,  and  pardons.  (See 
sec.  3469,  p.  399.) 

Officers  compromising  offenses  except  as  authorized  by  law; 
penalty.     (Sec.  3169,  p781,  and  sec.  3170,  p.  83.) 

District  attorney  or  marshal  compromising  cases  illegally; 
penalty.     (Sec.  3170,  p.  83.) 

Opinion  of  the  Attorney  General  as  to  the  limitation  of  the 
power  to  compromise  vested  in  the  Secretary  of  the  Treasury 
under  sections  3229  and  3469,  page  399.  (17  Op.  Atty.  Gen.,  213; 
27  Int.  Rev.  Rec,  334.) 

Compromises,  course  of  proceedings  indicated.  The  functions 
of  the  Secretary  of  the  Treasury  and  the  Attorney  General  are 
advisory.     (12  Op.  Atty.  Gen.,  472;  8  Int.  Rev.  Rec,  86.) 

Power  to  compromise  ceases  as  soon  as  judgment  is  rendered. 
(13  Op.  Atty.  Gen.,  479.) 

No  power  to  compromise  proceedings  against  officers.  (14  <  >]>. 
Atty.  Gen.,  8,  43.) 

The  right  to  compromise  is  understood  to  embrace  the  crim- 
inal as  well  as  the  civil  liability  of  the  defendant.  (13  Op. 
Atty.  Gen.,  480.) 

Can  not  compromise  taxes  legallv  due  from  a  solvent  taxpayer. 
T.  D.  18854;  16  Op.  Atty.  Gen.,*  249;  25  Int.  Rev.  Rec,  14. 
United  States  v.  Roelle  et  al.,  24  Int.  Rev.  Rec,  332;  Fed.  Cas. 
No.  16186.) 

See  also  Dorsheimer  v.  U.  S.,  (7  Wall.,  166;  10  Int.  Rev.  Rec, 
131),  as  to  power  to  remit  a  tax. 

Relative  to  compromise  of  liability  of  obligors  on  an  export 
bond.     (13  Op.  Atty.  Gen.,  115.) 

Canadian  bank  notes  paid  out  by  banks  in  the  United  States, 
tax  on,  compromise.     (21  Op.  Atty.  Gen.,  557.) 


124  ASSESSMENTS  AND   COLLECTIONS. 

No  power  to  compromise  a  suit  brought  against  a  collector  of 
internal  revenue  for  the  recovery  of  tax  claimed  to  have  been 
illegallv  collected.  (Coca  Cola  Co.  v.  Rucker;  23  Op.  Atty. 
Gen.,  507.) 

Money  deposited  for  compromise  can  not  be  held  or  set  off 
against  tax  due.  (Boughtonr.  United  States,  12  Ct.  Cls.,  330; 
13  ibid.,  234.) 

"When  party  complies  with  terms  of  compromise  it  is  conclu- 
sive. (Sweenv  v.  United  States,  17  Wall.,  75;  United  States  v. 
Child  &  Co.,  12  ibid.,  232;  Mason  v.  United  States,  17  ibid.,  67.) 

Discontinuance  on  payment  of  costs  a  compromise.  (Op.  Atty. 
Gen.  (Hoar),  11  Int.  Rev.  Rec,  98;  12  Op.  Atty.  Gen.  (Evarts), 
536.) 

Commissioner  may  direct  an  unconditional  dismissal  of  a  suit 
without  recommendation  of  Attorney  General.  (12  Op.  Atty. 
Gen.,  553.) 

The  Attorney  General  exercises  superintendence  and  direc- 
tion over  United  States  attorneys  and  general  supervision  over 
proceedings  instituted  for  the  benefit  of  the  United  States.  He 
may  absolutely  dismiss  or  discontinue  suits  in  which  the  Gov- 
ernment is  interested;  a  fortiori,  he  may  terminate  the  same  upon 
terms,  at  any  stage,  by  way  of  compromise  or  settlement.  (22  Op. 
Atty.  Gen.,  499;Treas.  Dec.  (1899),  No.  21270.) 

An  agreement  made  with  the  United  States  District  Attorney 
in  the  nature  of  a  compromise  is  not  valid  unless  with  the  concur- 
rence of  the  officers  above  named.  (U.  S.  v.  Quantity  of  Dis- 
tilled Spirits,  4  Ben.,  349;  Fed.  Cas.  16099.) 

There  is  no  authority  for  a  district  attorney  or  collector  to 
compromise,  adjust,  or  settle  any  charge  or  complaint  for  any 
violation,  or  alleged  violation,  of  the  internal-revenue  law. 
(T.  D.  845,  Dec.  9,  1904.) 

United  States  Commissioners  have  no  authority  to  settle 
cases.    (T.  D.  1216.) 

A  compromise  operates  for  the  protection  of  the  offender 
against  subsequent  proceedings  as  fully  as  a  former  conviction  or 
acquittal,  and  is  a  bar  to  a  suit  on  a  bond  to  recover  penalties 
based  upon  the  same  offense.  CU.  S.  v.  Chouteau  (1880),  102 
U.  S.  603;  27  Int.  Rev.  Rec,  51.) 

The  officers  of  the  Treasury  Department  are  authorized  to  com- 
promise a  case  involving  a  violation  of  the  oleomargarine  statutes 
upon  terms,  which,  in  their  judgment,  are  just  and  reasonable. 
The  initiative  of  action  is  with  the  Commissioner.  (26  Op.  Atty. 
Gen.,  282.) 

Suits  against  illicit  distillers  may  not  be  nolled  without  per- 
mission of  Attorney  General.     (Sec.  3230,  R.  S.) 

Commissioner  may  instruct  United  States  attorney  to  prose- 
cute or  abstain.     (Sees.  838,  p.  401;  3214,  p.  111.) 

Instructions  relative  to  offers  in  compromise.  (T.  D.  18854, 
Jan.  22,  1898;  T.  D.  20265,  Oct.  28,  1898.) 

As  to  compromises  induced  by  threats  and  duress.  (T.  D.  206, 
Aug.  30,  1900;  Int.  Rev.  Cir.  579.) 

As  to  five-dollar  offers.     (T.  D.  496,  Apr.  2,  1902.) 

Offers  in  C(  >mpromisc  should  include  payment  of  costs.  (T.  D. 
642,  Mar.  20,  1903.) 

Relative  to  deposit  of  amount  offered.    (T.  D.  1253.) 

enmotprmsm-     ^ec.  3230.  No  discontinuance  or  nolle  prosequi  of  any 

Hods.  prosecution  under  section  three  thousand  two  hundred 

and  fifty-seven  shall  be  allowed  without  the  permission 

in   writing  of  the  Secretary   of    the  Treasury   and   the 

Attorney-General. 

Continuance  of     Sec.  3231.  It  shall  he  lawful  for  any  court  in  which  any 

internal  -revenue        •,  •      •       l  r  •    ■  j         xi         •    j.  i 

cases.  suit  or  criminal  proceeding  arising  under  the  internal- 

revenue  laws  may  be  pending,  to  continue  the  same  at  any 
si  age  thereof,  for  good  cause  shown  on  motion  by  the  dis- 
trict attorney. 


Chapter  Three. 
SPECIAL  TAXES. 


Sec. 

3232.  Occupation  not  to  be  carried  on 

until  tax  is  paid. 

3233.  Business  to  be  registered. 
[3233a.]  Selling    on    passenger    railroad 

trains  or  vessels. 

3234.  Persons    in    partnership    at    same 

place  liable  for  only  one  tax. 

3235.  Payment  of  one  special  tax  not  to 

cover  several  places  of  business. 

3236.  When  more  than  one  pursuit  is  car- 

ried on  in  same  place  by  same 
person  at  same  time. 
3237  (amended).  When  special  tax  to  be 
due,  how  reckoned. 

3238.  Stamps  for  special  taxes. 

3239.  Special-tax  stamp  to  be  exhibited 

in  place  of  business. 

3240.  List  of  special-tax  payers  to  be  ex- 

hibited in  collector's  office. 

3241.  Death  or  removal  after  paying  tax; 

business  carried  on  without  addi- 
tional tax. 

3242.  Carrying  on  business  without  pay- 

ment of  special  tax;  penalties. 
3242a.]  Same. 
32426.]  Section  4,  act  of  August  2,  1886. 

Same  as  to  oleomargarine. 
[3242c]  Section  4,  act  of  May  9,  1902. 

Same  as  to  process,  renovated ,  or 
adulterated  butter. 

3243.  Payment  of  special  tax  not  to  au- 

thorize  violation   of   State   laws 
nor  prohibit  State  taxation. 


Sec. 

3244  (amended) .  Special  taxes  imposed  on 
whom : 
1st.  Brewers. 

2d.  Manufacturers  of  stills. 
3d.  Rectifiers. 
4th.  Retail  liquor  dealers. 

Wholesale  liquor  dealers. 
5th.  Retail  dealers  in  malt  liquors. 
Wholesale     dealers    in     malt 
liquors. 
Act   of   August   2,    1886,    section   3;    as 
amended  by  section  2,  act  of  May  9, 
1902: 
Manufacturers  of  oleomargarine. 
Wholesale  dealers  in  oleomargarine. 
Retail  dealers  in  oleomargarine. 
Act  of  May  9,  1902,  section  4: 

Manufacturers  of  process  or  renovated 

butter. 
Manufacturers  of  adulterated  butter, 
^'holesale     dealers    in    adulterated 

butter. 
Retail  dealers  in  adulterated  butter. 
Act  of  June  6,  1896,  section  3: 

Manufacturers  of  filled  cheese. 
Wholesale  dealers  in  filled  cheese. 
Retail  dealers  in  filled  cheese. 
Act  of  June  13,  1S98,  section  36: 

Manufacturers,  packers,  and  repack- 
ers  of  mixed  flour. 
3246  (amended).  Special  tax  not  to_ apply 
to  vintners  nor  apothecaries  in  cer- 
tain cases. 


Sec.  3232.  No  person  shall  be  engaged  in  or  carry  onto°^uP^n^ 
any  trade  or  business  hereinafter  mentioned  until  he  has  until  tax  is  paid. 
paid   a  special  tax  therefor  in  the  manner  hereinafter 
provided. 

See  section  53,  act  of  October  1,  1890,  amending  section  3237, 
Revised  Statutes,  modifying  the  above. 

It  was  held  in  License  Tax  Cases  (5  Wall. ,  462,  6  Int.  Rev.  Rec, 
36)  that  the  provisions  of  the  act  of  Congress  of  June  30,  1864, 
"to  provide  internal  revenue  to  support  the  Government,"  etc. 
(13  Stat.,  223),  and  the  amendatory  acts  requiring  licenses  for 
certain  kinds  of  business  and  imposing  penalties  for  not  taking 
out  and  paying  for  them,  were  not  contrary  to  the  Constitution 
or  to  public  policy,  and  that  the  provisions  of  the  act  of  July  13, 
1866,  "to  reduce  internal  taxation,"  etc.  (14  Stat.,  98),  for  the 
imposing  of  special  taxes,  in  lieu  of  requiring  payment  for 
licenses,  removed  whatever  ambiguity  existed  in  the  previous 
laws,  and  were  in  harmony  with  the  Constitution  and  public 
policy. 

125 


126  SPECIAL   TAXES. 

Returns  to  be  made  (Form  11).     (Sec.  3173,  p.  86.) 

For  failure  to  make  sworn  return  within  time  prescribed, 
without  excuse  of  "sickness  or  absence,"  the  Commissioner  of: 
Internal  Revenue  is  required  to  add  50  per  centum  to  the  special 
tax.     (Sec.  3176,  p.  89.) 

Prosecutions  not  to  be  commenced  (except  in  cases  of  ped- 
dlers of  liquors)  against  special-tax  payers  who  make  return  and 
pay  the  tax  at  any  time  before  expiration  of  the  calendar  month 
in 'which  liability  began.     (T.  D.  18946,  1898.) 

Except  in  the  case  of  persons  engaging  in  business  as  liquor 
dealers  in  localities  where  such  business  is  prohibited  by  local 
law.  In  such  cases  prosecution  to  be  instituted  unless  the 
special  tax  is  paid  and  the  stamp  posted  before  business  is 
begun.     (T.  D.  1605,  Mar.  25,  1910.) 

Where  a  person,  after  his  arrest  for  failure  to  pay  special  tax 
as  required  by  law,  proffers  to  the  collector  the  amount  of  the 
tax  and  50  per  cent  penalty,  upon  his  signing  and  swearing  to 
reUirn(Form  11),  the  collector  should  receive  the  money  proffered. 
This  does  not  relieve  such  person  from  his  criminal  liability. 
(T.  D.  21850,  1899.) 

A  verdict  in  favor  of  defendant  in  a  criminal  action  does  not 
estop  the  United  States  from  proving  the  special-tax  liability  in 
a  civil  action.     (U.  S.  v.  Schneider,  35  Fed.  Rep.,  107.) 

nJsratdoe  be  regis-     Sec.  3233.  Every  person  engaged  in  any  trade  or  busi- 
tered.  ness  on  which  a  special  tax  is  imposed  by  law  shall  register 

with  the  collector  of  the  district  his  name  or  style,  place  of 
residence,  trade  or  business,  and  the  place  where  such 
trade  or  business  is  to  be  carried  on.     In  case  of  a  firm  or 
compan}r,  the  names  of  the  several  persons  constituting 
the  same,  and  their  places  of  residence,  shall  be  so  regis- 
tered. 
staSmPesCimavtabe      [Sec.  3233a.]  [Joint  resolution  May  8,  1876  (19  Stat, 
SStoSbSSS^S).]     That  nothing  contained  in  chapter  three  of  title 
on  passenger  rail-  thirty-five  of  the  Revised  Statutes  shall  prevent  the  issue, 
sebdtrains°rves*  under  such  regulations  as  the  Commissioner  of  Internal 
Revenue  may  prescribe,  of  special-tax  stamps  to  persons 
carrying  on  the  business  of  retail  dealers  in  liquors,  retail 
dealers  in  malt  liquors,  or  dealers  in  tobacco,  upon  pas- 
senger railroad  trains  or  upon  steamboats  or  other  vessels 
engaged  in  the  business  of  carrying  passengers. 

The  special-tax  stamps  issued  for  the  retailing  of  wine  and 
liquor  on  buffet  cars  attached  to  passenger  railway  trainsare 
to  be  made  in  general  terms  for  such  cars  in  "the  United 
States,"  in  view  of  the  impracticability  of  repeated  transfers 
of  such  stamps  in  the  various  districts  and  States  through  which 
the  train  passes.     (T.  D.  21318,  1899.) 

Retailing  liquors  on  small  boats.     (T.  D.  1007.) 

ncr"fpnatnsPamte     Sec.  3234.  Any  number  of  persons  doing  business  in 
Lni^onelax   for  c ©partnership  at  any  one  place  shall  be  required  to  pay 
but  one  special  tax. 

United  States  v.  Cilab,  99  U.  S.,  225;  25  Int.  Rev.  Rec,  84. 
(See  section  3241.) 

spwaaTtaxtnot'to     Sec.  3235.  The  payment  of  the  special  tax  imposed 

PS  SofVebusi-shau  not  exempt  front  an  addil  ional  special  tax  the  person 

ness.  carrying  <>n  a  trade  or  business  in  any  other  place  than 

that  stated  in  the  collector's  register;  but  nothing  herein 

contained  shall  require  a  special  tax  for  the  storage  of 

goods,  wares,  or  merchandise  in  other  places  than  the 


SPECIAL   TAXES.  127 

place  of  business,  nor,  except  as  hereinafter  provided,  for 
the  sale  by  manufacturers  or  producers  of  their  own  goods, 
wares,  and  merchandise,  at  the  place  of  production  or 
manufacture,  and  at  their  principal  office  or  place  of  busi- 
ness, provided  no  goods,  wares,  or  merchandise  shall  be 
kept  except  as  samples  at  said  office  or  place  of  business. 

Where  beer  is  delivered  to  customers  from  a  storage  house' 
that  house  is  held  to  be  a  place  of  sale  for  which  special  tax  is 
required  to  be  paid,  unless  there  has,  in  every  instance,  been 
prior  constructive  delivery  at  a  regular  place  of  business  else- 
where.    (T.  D.  18999,  1898.) 

Where  warehouses  for  storage  of  malt  liquors  are  merely 
places  of  storage  and  not  places  where  customers  leave  their 
orders,  special  tax  is  not  required  to  be  paid  therefor,  nor  a 
special-tax  stamp  required  to  be  posted  up  therein.  (T.  D. 
21619,  1899.) 

Goods  are  offered  for  sale  at  the  place  where  they  are  kept  for 
sale,  and  where  a  sale  may  be  effected.  They  are  not  offered 
for  sale  elsewhere  by  sending  abroad  an  agent  with  samples  or 
by  establishing  an  office  for  the  purpose  of  taking  orders.  (XJ.  S. 
v.  Chevalier,  107  Fed.  Rep.,  434,  affirming  102  Fed.  Rep.  125.) 

But  a  wholesale  liquor  dealer  at  one  point  permitting  actual 
delivery  from  warehouse  at  another  point  without  prior  con- 
structive delivery  at  place  where  special-tax  stamp  is  held  is 
liable  for  special  tax  at  the  place  of  delivery.  De  Bary  et  al.  v. 
Dunne,  collector.     (172  Fed.  Rep.,  940;  T.  D.  1550.) 

Sec.  3236.  Whenever  more  than  one  of  the  pursuits  or    when  more 

,•  i  «,  -,  m       ,  .     1jr  ,,      than  one  pursuit 

occupations  hereinafter  described  are  carried  on  m  the  is  carried  on  m 
same  place  by  the  same  person  at  the  same  time,  except  as  same  person  bat 
hereinafter  provided,  the  tax  shall  be  paid  for  each  accord- same  time- 
ing  to  the  rates  severally  prescribed. 

Sec.  3237  [as  amended  by  sec.  53,  act  of  Oct.  1,  1890  (26  taJ^eg  ^^ 
Stat., 567)].  That  all  special  taxes  shall  become  due  on  the 
first  day  of  July,  eighteen  hundred  and  ninety-one,  and  on 
the  first  day  of  July  in  each  year  thereafter,  or  on  com- 
mencing any  trade  or  business  on  which  such  tax  is  im- 
posed. In  the  former  case  the  tax  shall  be  reckoned  for 
one  year;  and  in  the  latter  case  it  shall  be  reckoned  pro- 
portionately, from  the  first  day  of  the  month  in  which  the 
liability  to  a  special  tax  commenced  to  the  first  day  of  July 
following.  Special  tax  stamps  may  be  issued  for  the 
months  of  May  and  June,  eighteen  hundred  and  ninety- 
one,  upon  payment  of  the  amount  of  tax  reckoned  propor- 
tionately under  the  laws  now  in  force,  and  such  stamps 
which  have  been  or  may  be  issued  for  the  period  ending 
April  thirtieth,  eighteen  hundred  and  ninety  (one)  may 
upon  payment  of  one-sixth  of  the  amount  required  to  be 
paid  for  such  stamps  for  one  year,  be  extended  until  July 
first,  eighteen  hundred  and  ninety-one,  under  such  regula- 
tions as  may  be  prescribed  by  the  Commissioner  of  Inter- 
nal Revenue. 

And  it  shall  be  the  duty  of  special  tax  payers  to  render  Returns. 
their  returns  to  the  deputy  collector  at  such  times  within 
the  calendar  month  in  which  the  special  tax  liability  com- 
menced as  shall  enable  him  to  receive  such  returns,  duly 
signed  and  verified,  not  later  than  the  last  day  of  the 
month;  except  in  cases  of  sickness  or  absence,  as  provided 


128  SPECIAL  TAXES. 

for  in  section  three  thousand  one  hundred  and  seventy- 
six  of  the  Revised  Statutes. 

This  section  is  amendatory  of  sections  3173  (p.  86),  3176  (p. 89). 
It  also  repeals  the  proviso  to  section  3  of  the  act  of  August  2,  1886, 
relative  to  the  special  tax  of  manufacturers  of  oleomargarine 
commencing  business  subsequent  to  the  30th  day  of  June  in 
any  year. 

Time  of  payment.  Special-tax  payer,  even  though  he  makes 
sworn  return  within  the  calendar  month  of  his  liability,  is  liable 
to  criminal  prosecution  if  he  fails  to  pay  the  tax  within  that, 
month  and  to  post  the  stamp  in  his  place  of  business.  (T.  D. 
20230,  1898.) 

ciaittSes.forspe~     Sec.  3238.  All  specialHaxes  imposed  by  law,  including 
the  tax  on  stills  or  worms,  shall  be  paid  by  stamps  denot- 
ing the  tax,  and  the  Commissioner  of  Internal  Revenue  is 
required  to  procure  appropriate  stamps  for  the  payment  of 
istb1  (i8eb'stat ', such  taxes ;  and  the  provisions  of  sections  thirty-three  hun- 
316)-  '  dred  and  twelve  and  thirty-four  hundred  and  forty-six,  and 

all  other  provisions  of  law  relating  to  the  preparation  and 
issue  of  stamps  for  distilled  spirits,  fermented  liquors,  to- 
bacco, and  cigars,  shall,  so  far  as  applicable,  extend  to  and 
include  such  stamps  for  special  taxes;  and  the  Commis- 
sioner of  Internal  Revenue  shall  have  authority  to  make 
all  needful  regulations  relative  thereto. 

Section  3312  as  to  distilled  sprits,  page  207. 

Section  3446  as  amended,  page  355. 

The  act  of  December  24,  1872  (17  Stat.,  401),  first  required 
special  taxes  to  be  paid  by  stamps. 

Collectors  prohibited  from  issuing  receipts  in  lieu  of  stamps 
(Sec.  3183,  p.  94).  From  issuing  stamps  before  payment  (Sec. 
3169a, p.  82). 

Receipt  of  partial  payments  for  stamps  prohibited.  (T.  D. 
1457.) 

Unlawful  issue  of  receipts  for  moneys  received  in  payment 
of  special  taxes.     (Cir.  595,  T.  D.  297,  March  11,  1901.) 

Reporting  delinquent  special-tax  payers  for  assessment. — All  per- 
sons liable  to  pay  a  special  tax  who  failed  to  pay  the  same  prior 
to  or  during  the  calendar  months  in  which  liability  thereto 
occurred  should  be  reported  on  Form  23,  with  date  of  receipt  of 
Form  11,  or  other  application  to  pav  tax  noted  in  column  7, 
Form  23.  (Special  No.  185,  Mar.  20,  1878;  24  Int.  Rev.  Rec,  99; 
Cir.  Xo.  539,  revising  No.  470,  June  27,  1899;  T.  D.,  No.  21316. 
Int.  Rev.  Cir.  590,  Jan.  31,  1901,  revising  Cir.  No.  410.) 

Stamp  not  to  be  issued  until  Form  11  and  the  money  have 
been  received.     (28  Int.  Rev.  Rec.,  37.     See  T.  D.  1560.) 

The  special-tax  stamp  is  not  a  license,  but  merely  a  receipt  for 
the  tax.  It  puts  the  United  States  under  no  obligation  whatever 
to  the  holder  beyond  assuring  him  against  prosecution  under  the 
special-tax  laws.  License  Tax  Cases  (4  Wall.,  462;  6  Int.  Rev. 
Rec,  36;  T.  D.  1  184.) 

The  particular  place  of  business,  by  street  and  number,  to  be 
designated  in  the  stamp.     (T.  D.,  18912,  1898.) 

stfm^ob'con*  ^EC*  3239.  Every  person  engaged  in  any  business,  avoca- 
spicuousiy placed tion,  or  employment,  who  is  thereby  made  liable  to  a 
on!ii^int,ssnplacesPe(''al  tax  shall  place  and  keep  conspicuously  in  his 
,  4ct  ,V   FrI' '  establishment  or  place  of  business  all  stamps  denoting  the 

18"        (H'        '    '  ''    •  4-  t  ■    1  *      1      4-  I  1  1         11 

240).    verbal er- payment  ot  said  special  tax;  and  any  person  who  shall, 

ror corrected.       through  negligence,  fail  to  so  place  and  keep  said  stamps, 

shall  be  liable  to  a  penalty  equal  to  the  special  tax  for 

which  his  business  rendered  him  liable,  and  the  costs  of 


SPECIAL   TAXES.  129 

prosecution;  but  in  no  case  shall  said  penalty  be  less  than 
ten  dollars.  And  where  the  failure  to  comply  with  the 
foregoing  provision  of  law  shall  be  through  willful  neglect 
or  refusal,  then  the  penalty  shall  be  double  the  amount 
above  prescribed: 

Provided,  That  nothing  in  this  section  shall  in  any  way 
affect  the  liability  of  any  person  for  exercising  or  carrying 
on  any  trade,  business,  or  profession,  or  doing  any  act  for 
the  exercising,  carrying  on,  or  doing  of  which  a  special  tax 
is  imposed  by  law,  without  the  payment  thereof. 

The  words  "except  tobacco  peddlers"  in  third  line  omitted, 
as  under  existing  law  they  are  not  required  to  pay  a  special 
tax. 

Posting  special-tax  stamp.  (Cir.  letter,  Sept.  26,  1898; 
T.  D.,  20094.) 

Sec.  3240  [As  amended  by  the  act  of  June  21,  1906,    List  of  specM- 
3 '4  Stat.,  387}.  Each  collector  of  internal  revenue  shall, exhibited  in  cot 
under  regulations  of  the  Commissioner  of  Internal  Reve-  lector's  office- 
nue,  place  and  keep  conspicuously  in  his  office,  for  public 
inspection,  an  alphabetical  list  of  the  names  of  all  persons 
who  shall  have  paid  special  taxes  within  his  district,  and 
shall  state  thereon  the  time,  place,  and  business  for  which 
such  special  taxes  have  been  paid,  and  upon  application 
of  any  prosecuting  officer  of  any  State,  County,  or  munici- 
pality lie  shall  furnish  a  certified  copy  thereof ,  as  of  a  public 
record,  for  which  a  fee  of  one  dollar  for  each  one  hundred 
words  or  fraction  thereof  in  the  copy  or  copies  so  requested 
may  be  charged. 

The  names  in  this  list  should  be  the  true  names  and  not  the 
fictitious  ones  under  which  parties  may  elect  to  do  business. 
(36  Int.  Rev.  Rec,  14.) 

Production  of  records  of  internal-revenue  offices,  or  copies 
thereof  except  of  Record  10  as  above  provided,  or  divulging 
information  secured  in  an  official  capacity,  for  use  in  trial  of 
persons  indicted  for  violating  State  laws  is  forbidden.  (T.  D., 
19245,  1898;  34  Int.  Rev.  Rec,  261;  In  re  Weeks  (Vt.),  82  Fed. 
Rep.,  730;  Judge  Evans's  decision  in  re  David  N.  Comingore, 
collector  Sixth  district  of  Kentucky;  T.  D.  (1899),  No.  21584; 
96  Fed.  Rep.,  552;  Boskeu.  Comingore  (477 U.  S.,  459;  T.  D.,  104;) 
In  re  Lamberton,  124  Fed.  Rep.,  446;  T.  D.,  689;  Stegall  v. 
Thurman,  175  Fed.  Rep.,  813;  T.  D.,  1616.) 

Regulations  prohibiting  the  giving  out  by  collectors  of  records 
in  then  offices,  or  copies  thereof,  for  purposes  not  contemplated 
by  the  internal-revenue  laws.  (Regulations  No.  12  Revised, 
Sec.  3167,  p.  79;  Sec.  882,  appendix,  p.  391.) 

Information  (departmental),  how  furnished.  (Dept.  Cir.  No. 
69,  July  5,  J9.06.     Dept.  Rule  IX,  p.  391.) 

Records  in  a  collector's  office  relating  to  special-tax  payers  are 
based  on  returns  made  by  these  persons  under  compulsion  of 
law  for  the  sole  purpose  of  raising  revenue  for  the  United  States. 
Collectors  are  not  permitted  to  send  out  these  records,  or  copies 
thereof,  for  use  against  the  special-tax  payers  in  cases  not  arising 
under  the  laws  of  the  United  States.     (T.  D.,  19190,  1898.) 

While  all  persons  are  entitled  to  inspect  Record  No.  10  in  the 
collector's  office  at  reasonable  and  proper  times,  and  are  not 
prohibited  from  copying  the  names  and  addresses  of  special- 
tax  payers,  yet  no  person  is  to  be  permitted  to  monopolize  the 
book  to  the  extent  of  interfering  with  the  collector's  use  of  it 
or  to  the  exclusion  of  other  persons.     (T.  D.,  19225,  1898.) 

72190°— 11 9 


130  SPECIAL    TAXES. 

The  regulations  prohibiting  collectors  from  sending  out  their 
records,  or  making  and  furnishing  copies  thereof,  do  not  author- 
ize them  to  prevent  the  public  inspection  of  Record  No.  10  in 
their  offices.     (T.  D.,  19332,  1898.) 

Scope  of  act  of  June  21,  1906.    (T.  D.  1050,  T.  D.  1164.) 

Death  or  re-      gEC   3241.  When  any  person  who  has  paid  the  special 

moval  after  pay-  „  ,  i         •  t  i   •  •<■  i   -i  l 

ing  tax;  business  tax  for  any  trade  or  business  dies,  his  wire  or  child,  or 
on"  iedadditiona- executors  or  administrators  or  other  legal  representatives, 
tax-  may  occupy  the  house  or  premises,  and  in  like  manner 

carry  on,  for  the  residue  of  the  term  for  which  the  tax  is 
paid,  the  same  trade  or  business  as  the  deceased  before 
carried  on,  in  the  same  house,  and  upon  the  same  prem- 
ises, without  the  payment  of  any  additional  tax.  And 
when  any  person  removes  from  the  house  or  premises  for 
which  any  trade  or  business  was  taxed  to  any  other  place, 
he  may  carry  on  the  trade  or  business  specified  in  the 
collector's  register  at  the  place  to  which  he  removes, 
without  the  payment  of  any  additional  tax: 

Provided,  That  all  cases  of  death,  change,  or  removal,  as 
aforesaid,  with  the  name  of  the  successor  to  any  person 
decreased,  or  of  the  person  making  such  change  or  removal, 
shall  be  registered  with  the  collector,  under  regulations  to 
be  prescribed  by  the  Commissioner  of  Internal  Revenue. 

A  special-tax  payer  who  discontinues  business  is  not  entitled 
to  any  rebate  for  the  unexpired  portion  of  the  year  for  which 
the  special-tax  stamp  was  issued. 

Special-tax  stamps  are  not  transferable  from  one_  dealer  to 
another.  When  a  nsw  member  is  added  to  a  firm  paying  special 
tax,  a  new  stamp  will  be  required.  When  two  persons,  each 
holding  a  stamp  for  business  carried  on  by  himself,  form  a  part- 
nership, the  firm  (a  separate  person,  in  law,  from  either  of  them) 
must  pay  special  tax.  Stamps  for  separate  persons  can  not  be 
joined  together  to  answer  for  a  partnership.  (T.  D.,  19189,  1898; 
35  Int.  Rev.  Rec,  285.) 

Regulations  governing  the  transfer  of  stamp  upon  removal  of 
business  from  one  place  to  another  within  a  district  or  from  one 
district  to  another.  (Regulations  No.  1,  supplement  No.  1, 
June  6,  1910;  T.  D.,  1637.) 

Collector  has  no  discretion  as  to  granting  or  declining  to  grant 
application  for  transfer  of  special-tax  stamp.  (T.  D.,  20338, 
1898.) 

No  additional  special  tax  in  case  of  change  of  firm,  one  or  more 
of  its  members  succeeding  to  and  carrying  on  the  business  at 
same  place.  (United  States  v.  Glab,  99  U.  S.  (9  Otto),  225;  25 
Int.  Rev.  Rec,  84.) 

A  member  of  a  firm  who  has  acquired  the  interest  of  the  other 
members  of  the  firm  is  entitled  to  transfer  the  business  to  another 
location  without  payment  of  additional  special  tax.  (United 
States  v.  Davis,  35  Int.  Rev.  Rec,  46;  37  Fed.  Rep.,  468;  Cir. 
No.  324;  35  Int.  Rev.  Rec,  109.) 

A  member  of  a  linn  who,  upon  its  dissolution,  carries  on  the 
business  himself  without  associating  any  other  person  with  him 
therein  is  entitled  to  continue  the  business  tinder  the  firm's 
Special-tax  stamp  and  to  have  such  stamp  transferred  to  any 
Other  place  to  which  he  removes  the  business.  (T.D.,  20346, 
1898.) 

Where  new  partners  arc  taken  into  a  firm,  thereby  dissolving 
the  old  firm  and  creating  a  new  partnership,  the  new  firm  can 
not,  under  the  law,  carry  on  business  under  the  special-tax 
stamp  of  the  old  firm.  It  must  make  return  and  pay  its  own 
special  tax  reckoned  from  the  first  day  of  the  month  in  which  it 
began  business.     (T.  D.,  20550,  1899.) 


SPECIAL   TAXES.  131 

Additional  special  tax  not  to  be  required  of  unincorporated 
club  by  reason  of  changes  in  membership,  where  such  changes 
do  not  result  in  dissolution  and  formation  of  new  club.  (T.  D. 
1625,  May  17,  1910.) 

Firm  changing  into  a  corporation,  new  special  tax  required. 
(T.  D.  1165.) 

A  mere  change  of  name  of  a  firm  to  which  a  special-tax  stamp 
has  been  issued  does  not  necessitate  the  taking  out  of  a  new 
stamp.     (T.  D.  19064,  1898;  T.  D.  1451.) 

A  special-tax  stamp  taken  by  a  woman  as  a  retail  liquor  dealer, 
in  her  own  name,  is  sufficient  for  the  same  business  conducted 
by  her  husband,  who  takes  charge  of  it  upon  her  retirement 
therefrom;  he  is  not  required  to  pay  special  tax  and  take  out  a 
stamp  in  his  own  name  because  of  the  fact  that  a  town  license 
was  refused  to  her,  but  issued  to  him.     (T.  D.  19411,  1898.) 

A  special-tax  payer's  wife  may  continue  business  under  his 
stamp.     (T.  D.  19026, 1898.) 

Sec.  3242.     *     *     *     And  every  person  who  carries    carrying  on 
on  the  business  of  a  brewer  or  wholesale  or  retail  dealer  in^^^.^1^ 
malt  liquors,  without  having  paid  a  special  tax  therefor,  ciai  tax. 
as  required  by  law,  shall,  besides  being  liable  to  the  pay- 
ment of  the  tax,  be  fined  not  less  than  ten  dollars  nor  more 
than  five  hundred  dollars. 

The  portion  of  this  section  which  is  omitted  relates  to  recti- 
fiers, liquor  dealers,  etc.,  and  was  superseded  by  the  following 
section;  and  to  tobacco,  cigar  manufacturers,  etc.,  repealed  by 
section  26,  act  of  October  1,  1890. 

[Sec.  3242a.]  [Sec.  16,  act  of  Feb.  8, 1875  (18  Stat,  307).}    Rectifiers,  nq- 
That  any  person  who  shall  carry  on  the  business  of  a  recti-  carVy1ngleon  busi- 
fier,  wholesale  liquor  dealer,  retail  liquor  dealer,  wholesale nesswithoutpay- 
dealer  in  malt  liquors,  retail  dealer  in  malt  liquors,  or 
manufacturer  of  stills,  without  having  paid  the  special  tax 
as  required  by  law,  or  who  shall  carry  on  the  business  of  a 
distiller  without  having  given  bond  as  required  by  law,  or    r>iStiiier  carry- 
who  shall  engage  in  or  carry  on  the  business  of  a  distiller  ^tho0°t  bu^f 
with  intent  to  defraud  the  United  States  of  the  tax  on  the  bond,  or  with  in- 
spirits distilled  by  him,  or  any  part  thereof,  shall,  for  every tent  t0  deframL 
such  offense,  be  fined  not  less  than  one  hundred  dollars  nor 
more  than  five  thousand  dollars  and  imprisoned  not  less 
than  thirty  days  nor  more  than  two  years.     *     *     * 

Payment  of  tax  after  the  offense  not  a  bar  to  prosecution. 
(United  States  v.  Van  Horn,  20  Int.  Rev.  Rec,  145;  United 
States  v.  Devlin,  6  Blatch.,  71;  United  States  v.  Ellis,  15  Int. 
Rev.  Rec,  43.) 

Special-tax  stamp  not  retroactive.  (United  States  v.  Angell, 
11  Fed.  Rep..  34.)_ 

The  penalty  is  incurred  by  a  rectifier  who  omits  to  pay  the 
special  tax  irrespective  of  any  intention  to  defraud.  (United 
States  v.  Rectifying  Establishment  of  Sloss,  11  Int.  Rev.  Rec, 
46.) 

In  regard  to  distillers,  see  section  3281,  page  173. 

Prosecution  must  be  by  indictment  or  presentment,  not  by 
information.     (United  States  v.  Johannesen,  35  Fed.  Rep.,  411.) 

See  note  under  section  3213,  page  109. 

Rectifiers  intending  to  defraud.     (Sec.  3317,  p.  210.) 

[Sec.  3242o.]  [Sec.  4,  act  of  Aug.  2,  1886  (24  M,ofSS 
£09).]  That  every  person  who  carries  on  the  business  °^r°yI?n|r0gna1rn1^je 
of  a  manufacturer  of  oleomargarine  without  having  paid n ess  without 
the  special  tax  therefor,  as  required  by  law,  shall,  besides  ciauaxl 


Penalties. 


132  SPECIAL   TAXES. 

being  liable  to  the  payment  of  the  tax,  be  fined  not  kss 
thaiTone  thousand  and  not  more  than  five  thousand 
dollars;  and  every  person  who  carries  on  the  business 
of  a  wholesale  dealer  in  oleomargarine  without  having 
paid  the  special  tax  therefor,  as  required  by  law,  shall, 
besides  being  liable  to  the  payment  of  the  tax,  be  fined 
not  less  than  five  hundred  nor  more  than  two  thousand 
dollars ;  and  every  person  who  carries  on  the  business  of 
a  retail  dealer  in  oleomargarine  without  having  paid  the 
special  tax  therefor,  as  required  by  law,  shall,  besides 
being  liable  to  the  payment  of  the  tax,  be  fined  not  less 
than  fifty  nor  more  than  five  hundred  dollars  for  each 
and  every  offense. 

penalty.  [Sec.  3242c]  [Sec 4,  of  act  of  May  9,1902  (32  Stat,  193).] 

That  every  person  who  carries  on  the  business  of  a  manu- 
facturer of  process  or  renovated  butter  or  adulterated 
butter  without  having  paid  the  special  tax  therefor,  as 
required  by  law,  shall,  besides  being  liable  to  the  payment 
of  the  tax,  be  fined  not  less  than  one  thousand  and  not 
more  than  five  thousand  dollars ;  and  every  person  who 
carries  on  the  business  of  a  dealer  in  adulterated  butter 
without  having  paid  the  special  tax  therefor,  as  required 
by  law,  shall,  besides  being  liable  to  the  payment  of  the 
tax,  be  fined  not  less  than  fifty  nor  more  than  five  hundred 
dollars  for  each  offense. 

Payment  of  spe-     Sec.  3243.  The  payment  of  any  tax  imposed  by  the 
8i£%tot£m  internal-revenue  laws  for  carrying  on  any  trade  or  busi- 

ofrohfbftlast'ant°eness  snau  not  be  ne^  to  exemPt  anY  person  from  any 
taxation.  penalty  or  punishment  provided  by  the  laws  of  any  State 

for  carrying  on  the  same  within  such  State,  or  in  any 
manner  to  authorize  the  commencement  or  continuance 
of  such  trade  or  business  contrary  to  the  laws  of  such 
State  or  in  places  prohibited  by  municipal  law;  nor  shall 
the  payment  of  any  such  tax  be  held  to  prohibit  any 
State  from  placing  a  duty  or  tax  on  the  same  trade  or 
business,  for  State  or  other  purposes. 

McGuire  v.  Commonwealth,  3  Wall.,  387;  License  Tax  cases, 
5  ibid.,  462;  6  Int.  Rev.  Rec,  36;  affirmed  in  the  case  of  Per- 
vear  v.  The  Commonwealth. 

A  license  (special-tax  stamp)  from  the  Federal  Government, 
under  the  internal-revenue  act  of  Congress,  is  no  bar  to  an  indict- 
ment under  a  State  law  prohibiting  the  sale  of  intoxicating 
liquors.     (Pervear  v.  The  Commonwealth,  5  Wall.,  475.) 

The  act  of  August  2,  1886  (24  Stat.,  209),  does  not  give  author- 
ity to  those  who  pay  the  taxes  prescribed  by  it  to  engage  in  the 
manufacture  or  sale  of  oleomargarine  in  any  State  which  law- 
fully forbids  such  manufacture  or  sale,  or  to  disregard  any  regu- 
lations which  a  State  may  lawfully  prescribe  in  reference  to  that 
article,  and  that  act  is  not  a  regulation  of  commerce  among  the 
Slates.  The  statute  of  Massachusetts  "to  prevent  deception  in 
the  manufacture  and  sale  of  imitation  butter,"  is  not  in  conflict 
with  the  clause  of  the  Constitution  of  the  United  States  investing 
Congress  with  power  to  regulate  commerce  among  the  States. 
(Plumley  r.  Massachusetts,  155  U.  S.,  461.) 

Persons  who  engage  in  the  sale  of  alcoholic  liquor,  even 
though  such  business  is  a  violation  of  the  law  of  their  State, 
an;  nevertheless  required  to  pay  special  tax  under  the  internal- 
revenue   laws   of   the   United   States.     The   stamp,    however, 


SPECIAL  TAXES. 


133 


issued  to  them  is  not  a  license,  and  does  not  protect  them  from 
prosecution,  conviction,  and  sentence  under  the  State  law. 
(T.  D.  (1899)  No.  21851;  see  also  T.  D.  1484,  Apr.  21,  1909.) 

Special  tax  to  be  paid  by  town  and  State  liquor  agents.  (T.  D. 
973.)  * 

State  agencies.  (South  Carolina  v.  United  States,  199  U.  S., 
437;  (T.  D.  961,  1904);  139  Ct.  Cls.,  257;  T.  D.  759.) 

A  State  statute  requiring  the  holder  of  a  special-tax  stamp  to 
perform  duties  in  conflict  with  the  Federal  statute  is  uncon- 
stitutional. 

A  State  may  not  so  exert  its  police  power  as  to  directly  hamper 
or  destroy  a  lawful  authority  of  the  United  States.  (North 
Dakota  ex  rel.  Flaherty  v.  Hanson,  215  U.  S.,  515.) 

Sec  3244,  [as  amended.]     Special  taxes  are  imposed    special  taxes, 
as  follows: 

First.  Brewers  shall  pay  one  hundred  dollars.  Every  Brewers, 
person  who  manufactures  fermented  liquors  of  any  name 
or  description  for  sale,  from  malt,  wholly  or  in  part,  or 
from  any  substitute  therefor,  shall  be  deemed  a  Drewer: 
Provided,  That  any  person  who  manufactures  less  than 
five  hundred  barrels  a  year  shall  pay  the  sum  of  fifty 
dollars. 

Rice  beer  fermented  is  a  fermented  liquor  made  from  a  sub- 
stitute for  malt.     (34  Int.  Rev.  Rec,  253.) 

Ruling  in  regard  to  manufacture  of  small  beer.  (35  Int.  Rev. 
Rec,  133.) 

Root  beer,  a  fermented  liquor  made  from  "roots,  barks,  herbs, 
sugar,  and  bread  yeast,"  if  it  is  not  similar  to  weiss  beer  or  to 
any  of  the  fermented  liquors  enumerated  in  section  3339,  R.  S., 
is  not  subject  to  tax;  nor  is  the  special  tax  of  a  brewer  required 
to  be  paid  for  its  manufacture  for  sale.     (T.  D.  19383,  1898.) 

Special  tax  is  required  to  be  paid  for  the  manufacture  and 
sale  of  "hop  beer"  resembling  weiss  beer.  (T.  D.  20233,  1898; 
T.  D.  19445.) 

Fermented  liquor  made  from  malt,  or  from  substitute  there- 
for.    (T.  D.  892;  T.  D.  646.) 

Beverages  under  the  name  of  "Hop  ale,"  "Hop  tonic," 
"Maltina,"  etc.     (T.  D.  19154.) 

"Hop  tea  tonic."     (T.  D.  829.) 

Second.  Manufacturers   of  stills  shall  each  pay  fifty    Manufacturers 
dollars,  and  twenty  dollars  for  each  still  or  worm  for 
distilling  made  by  him.     Any  person  who  manufactures 
any  still  or  worm  to  be  used  in  distilling  shall  be  deemed 
a  manufacturer  of  stills. 

Sec.18  [act  of  May  28,  1880  (21  Stat.,  145).]  That  Exception. 
subsection  second  of  section  thirty-two  hundred  and  forty- 
four  shall  not  apply  to  distillers  in  registered  distilleries 
who  manufacture  for  their  own  use  wooden  stills,  but  each 
of  said  distillers  shall  give  notice  to  the  collector  of  the  dis- 
trict in  which  his  distillery  is  located  of  each  still  manu- 
factured before  the  same  is  used. 

Manufacturers  of  stills  for  pharmaceutical  and  scientific  pur- 
poses. (22  Int.  Rev.  Rec,  397;  36  ibid.,  285;  T.  D.  (1898), 
No.  20063.) 

A  still  made  for  use  in  the  manufacture  of  vinegar  comes  under 
the  ruling  as  to  stills  not  used  in  the  distillation  of  the  spirits, 
and  special  tax  is  not  required  to  be  paid  thereon. — Ruling 
20878  revoked.     (T.  D.  (1900),  No  11.) 

Liability  to  special  tax  of  manufacturers  of  stills  of  5-gallon 
capacity  or  less,  and  of  stills  used  for  pharmaceutical  purposes. 
Settled  ruling,  36  Int.  Rev.  Rec,  285. 


Drawback     on 
stills. 


134  SPECIAL  TAXES. 

Stills  of  5  gallons  or  less.     (33  Int.  Rev.  Rec,  397.) 

All  stills  "set  up  "required  to  be  registered.     (Sec. 3258, p.  157.) 

Ruling  in  regard  to  repairing  of  stills.     (35  Int.  Rev.  Ree.,  133.) 

Separate  special  tax  to  be  paid  on  a  still  for  distillation  of 

9  spirits  and  on  a  worm  for  such  distillation.     Settled  "ruling  as 

to  a  person  who  is  employed  by  a  distiller  to  manufacture  parts 

of  a  wooden  still.     (T.  D.  No.  21835,  1899.) 

The  manufacturer  of  a  still,  to  be  used  only  for  pharmaceutical 
purposes,  or  for  distillation  of  volatile  oils,  is  not  required  to  pay 
tax  thereon,  provided  he  furnishes  the  collector  evidence,  under 
oath,  setting  forth  the  purpose  for  which  the  still  is  to  be  used. 
(T.  D.  5,  Jan.  5,  1900.) 

The  statutory  provision  imposing  special  tax  on  stills  is  held 
not  to  apply  to  a  still  that  is  shown  not  to  be  intended  for  the 
production  of  the  spirits  defined  by  the  internal-revenue  laws. 
(T.  D.  64,  Mar.  8,  1900.) 

The  manufacturer  of  a  worm  for  use  by  a  rectifier  in  the  redis- 
tillation of  spirits  is  required  to  pay  special  tax  thereon.  (T.  D. 
917,  Aug.  16,  1905.) 

There  is  no  special  tax  under  these  laws  on  stills  for  the  pro- 
duction of  wood  alcohol.     (T.  D.  918,  Aug.  26,  1905.) 

Tax  must  be  paid  on  stills  and  worms  manufactured  for  use  in 
industrial  distilleries  producing  alcohol  solely  for  denaturation. 
(T.  D.  1423,  Oct.  2,  1908.) 
Sec.  10  [act  of  Mar.  1,  1879  (20  Stat,  327).]      Upon  all 
stills  manufactured  for  export,  and  actually  exported,  there 
shall  he  allowed  a  drawback,  where  the  tax  thereon  has  been 
paid,  under  such  rules  and  regulations  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary  of 
the  Treasury,  shall  prescribe. 

See  Regulations,  No.  29,  revised. 
Third.  Rectifiers    of    distilled    spirits    shall    pay    two 
hundred  dollars. 

Every  person  who  rectifies,  purifies,  or  refines  distilled 
spirits  or  wines  by  any  process  other  than  by  original  and 
continuous  distillation  from  mash,  wort,  or  wash,  through 
if  i879*'(2o  slat.;  continuous  closed  vessels  and  pipes,  until  the  manufacture 
^2: thereof  is  complete,  and  every  wholesale  or  retail  liquor- 

lessthan'soolja"-^6^61,  wno  nas  m  n*s  possession  any  still  or  leach  tub,  or 
reis  a  year.  who  keeps  any  other  apparatus  for  the  purpose  of  refining 
in  any  manner  distilled  spirits,  and  every  person  who, 
without  rectifying,  purifying,  or  refining  distilled  spirits, 
shall,  by  mixing  such  spirits,  wine,  or  other  liquor  with 
any  materials,  manufacture  any  spurious,  imitation,  or 
compound  liquors  for  sale,  under  the  name  of  whisky, 
brandy,  gin,  rum,  wine,  spirits,  cordials,  or  wine  bitters, 
or  any  other  name,  shall  be  regarded  as  a  rectifier,  and  as 
being  engaged  in  the  business  of  rectifying. 

Provided,  That  any  person  who  rectifies,  purifies,  refines, 
or  manufactures  as  aforesaid  less  than  five  hundred  barrels  a 
year,  counting  forty  gallons  of  proof  spirits  to  the  barrel,  shall 
pay  one  hundred  dollars. 

And  provided,  That  nothing  in  this  section  shall  be  held 
to  prohibit  the  purifying  or  refining  of  spirits  in  the 
course  of  original  and  continuous  distillation  through  any 
material  which  will  not  remain  incorporated  with  such 
spirits  when  the  manufacture  thereof  is  complete. 


Kectifiers. 


Sec.  4,  act  Mar 


SPECIAL   TAXES.  135    * 

And  provided  further,  That  no  officer  shall  collect  any  Rectifying 
special  tax  for  rectifying  distilled  spirits  on  any  premises  rd£tme?y.feet  °f 
distant  less  than  six  hundred  feet  in  a  direct  line  from  any  18^5ct  aSeb'st^' 

distillery.     And  every  officer  who  collects  any  special  tax  316). "' 

in  violation  of  this  proviso  shall  be  liable  to  a  penalty  of    Penalty  for  eoi- 
five  thousand  dollars  for  each  offense.  £?*     special 

Rectifiers  or  brewers  who  have  paid  special  tax  as  "rectifiers 
or  brewers  of  less  than  500  barrels,"  and  who  during  the  same 
special-tax  year  desire  to  increase  their  product,  should  make 
application  for  a  new  stamp,  of  the  denomination  of  $200  in  the 
case  of  a  rectifier  or  §100  in  the  case  of  a  brewer.  On  obtaining 
this  new  stamp  the  rectifier  or  brewer  may  apply  to  the  Com- 
missioner of  Internal  Revenue,  under  act  of  May  12,  1900,  for 
the  redemption  of  the  stamp  first  issued. 

Gin,  manufacture  of.     (12  Int.  Rev.  Rec,  197.) 

Rectifying  within  600  feet  of  a  distillery.  (Sec.  3266,  p.  166; 
Sec.  3280,  p.  172.) 

The  presence  of  a  filter,  consisting  of  a  closely  packed  pulp 
through  which  liquid  is  forced  under  pressure,  on  premises  of 
a  wholesale  or  retail  liquor  dealer  constitutes  such  dealer  a  recti- 
fier.    (T.  D.  19060,  1898.) 

Filtering  apparatus. — Permitting  certain  described  filtering 
apparatus  in  bottling  warehouses,  but  not  on  premises  of  whole- 
sale liquor  dealers.     (T.  D.  21106,  1899.) 

Liability  of  persons  who  mix  spirits  or  liquors  of  different 
strengths  or  different  kinds.     (10  Int.  Rev.  Rec,  121.) 

The  addition  of  water  or  the  simple  mixing  of  spirits  of  the  same 
kind,  produced  at  the  same  distillery  at  or  about  the  same  time, 
is  not  regarded  as  rectification. 

The  general  rule  is  that  a  wholesale  liquor  dealer  in  his  capacity 
as  such  may  commingle  spirits  of  the  same  production,  quality, 
and  kind,  differing  in  age  not  more  than  one  year  and  in  proof 
not  more  than  10  per  cent,  without  rendering  himself  liable  as  a 
rectifier. 

The  addition  to  distilled  spirits  of  any  coloring  matter  or 
foreign  substance  which  in  any  way  changes  the  character  of  the 
spirits  or  remains  incorporated  therein  is  regarded  as  rectification. 
(Regulations  No.  1,  Revised,  Aug.  15,  1907,  p.  27;  Stark  v. 
Nunn,  101  Fed.  Rep.,  423;  T.  D.  121.) 

Addition  of  caramel  to  spirits  constitutes  rectification.  (T.  D. 
1332.) 

A  retail  liquor  dealer  who  reduces  with  water  a  small  quantity 
of  whisky  (less  than  5  gallons)  and  mixes  it  with  sugar,  or  other 
material,  keeping  it  in  a  demijohn  or  other  receptacle,  merely 
for  his  own  convenience  in  meeting  orders  of  his  customers  at  his 
bar,  and  does  not  make  it  a  practice  to  put  up  the  compound  in 
bottles  in  advance  of  orders  therfor  for  sale,  is  not  to  be  regarded 
as  liable  to  special  tax  as  a  rectifier.  (T.  D.  418,  Oct.  5,  1901; 
T.  D.  1014,  June  19,  1906.) 

Recovering  alcohol. — Druggists  recovering  alcohol  previously    U.  S.  v.  Hance 
used  in  making  medicines.     (24  Int.  Rev.  Rec,  282.)  _  T' Sniith^mine 

The  recovery  of  alcohol  from  preparations  that  are  not  medi-  &  French' Co.  (T. 
cines  is  rectification.     (T.  D.  963,  Dec.  30,  1905.)  D.  1684.) 

Medicinal  compounds. — Special  tax  as  rectifier  required  for 
manufacture  of  alcoholic  medicinal  compounds  which  are  not 
so  medicated  as  to  be  unfit  for  use  as  a  beverage  and  for  the 
manufacture  of  medicinal  cordials,  flavoring  extracts,  essences, 
and  soda-water  sirups  which  contain  alcohol  in  excess  of  the 
quantity  necessary  to  preserve  the  ingredients,  extract  the 
properties,  or  cut  the  oils  and  hold  them  in  solution.  (T.  D. 
1251,  Oct.  12,  1907;  T.  D.  1255.) 

In  a  genuine  medicine  the  alcohol  should  not  be  more  than  is 
necessary  for  the  legitimate  purposes  of  extraction,  solution,  or 
preservation,  and  the  preparation  should  contain  approximately 
a  U.  S.  P.  dose  of  some  medicinal  ingredient  of  recognized  value, 


136  SPECIAL  TAXES. 

either  alone  or  in  combination  with    other  compatible  drugs. 
(T.  D.  1510,  June  17,  1909.) 

Wines. — Wines  manufactured  from  prunes.  (T.  D.  633.) 
"Blackberry  wine"  and  "blackberry  cordial,"  produced  from 
grapes  grown  in  the  United  States,  fortified  with  spirits  and 
flavored  with  blackberry,  held  to  be  a  product  of  rectification, 
but  not  liable  to  stamp  tax  under  section  3328,  Revised  Statutes. 
(T.  D.  495,  Mar.  31,  1902.) 

Flavoring  extracts.— Manufacture  of.  Allen  v.  Liquid  Car- 
bonic Co.     (170  Fed.  Rep.,  315.) 

Fourth.  [See.  18,  act  of  Feb.  8,  1875  (18  Stat.,  309),  as 

Retail    uquor amended  by  sec.  4>  act  °f  Mar.  1>  18?9  (®®  Stat.,  327).] 

dealers.  rpj^  retail  dealers  in  liquors  shall  pay  twenty-five  dollars. 

Every  persons  who  sells,  or  offers  for  sale,  foreign  or 

domestic  distilled  spirits,  wines,  or  malt  liquors,  otherwise 

than  as  hereinafter  provided,  in  less  quantities  than  five 

wine  gallons  at  the  same  time,  shall  be  regarded  as  a 

retail  dealer  in  liquors. 

wholesale  iiq-     Wholesale  liquor  dealers  shall  each  pay  one  hundred 

uor  dealers.  ->    „ 

dollars. 

Every  person  who  sells,  or  offers  for  sale,  foreign  or 
domestic  distilled  spirits,  wines,  or  malt  liquors,  otherwise 
than  as  hereinafter  provided,  in  quantities  of  not  less  than 
five  wine  gallons  at  the  same  time,  shall  be  regarded  as  a 
wholesale  liquor-dealer. 

If  the  quantity  of  malt  liquor  sold  at  one  time  exceeds  five 
gallons,  the  vender  is  a  wholesale  dealer,  although  the  same  is 
not  contained  in  one  package.  (United  States  v.  Clare,  2  Fed. 
Rep.,  55.) 

In  prosecutions  for  selling  liquor  at  wholesale,  without  pay- 
ment of  special  tax,  it  is  not  incumbent  upon  the  Government  to 
prove  that  the  gallon  measure  used  by  defendant  conformed  to 
the  legal  standard;  nor  is  it  necessary  to  prove  that  each  gallon 
contained  a  gallon  of  proof  spirits.  (United  States  v.  Hart,  28 
Int.  Rev.  Rec,  226.) 

wholesale"  iiruor  But  n0  driller  who  has  given  the  required  bond  and 
dealer*  when.  who  sells  only  distilled  spirits  of  his  own  production  at  the 
place  of  manufacture,  or  at  the  place  of  storage  in  bond,  in 
the  original  packages  to  which  the  tax-paid  stamps  are 
affixed,  shall  be  required  to  pay  the  special  tax  of  a 
wholesale  liquor-dealer  on  account  of  such  sales. 

See  section  3318a,  p.  211. 
Cltibs.  Club  owning  liquors  and  selling  to  members.     (United  States 

v.  Wittig,  2  Low.,  466;  22  Int.  Rev.  Rec,  98;  United  States  v. 
Woods,  24  ibid.;  150;  United  States  v.  Rolinger,  28  ibid.,  314; 
United  States  v.  Kallstrom  et  al.,  33  ibid.,  152;  United  States  v. 
Giller,  51  Fed.  Rep.,  656.) 

Every  social  club  that  receives  orders  from  its  members  for 
alcoholic  liquor  in  any  quantity  less  than  five  gallons,  and  fur- 
nishes the  liquor  so  ordered  and  collects  pay  therefor,  "or 
accepts  the  consumer's  promise  to  pay  in  the  future,"  sells  the 
liquor  to  its  members  and  is  a  retail  liquor  dealer  under  the 
internal-revenue  laws,  and  is  required  to  pay  special  tax  accord- 
ingly. (United  States  v.  The  Alexis  Club,  IT.  S.  district  court, 
eastern  district  of  Pennsylvania;  98  Fed.  Rep.,  725;  T.  D.  8, 
1900.) 

Clubs  or  societies  collecting  money  for  purchase  of  liquors  for 
joint  use  of  contributors.     (T.  D.  1262.) 

A  social  club  in  which  beer  is  supplied  to  its  members,  who 
help  themselves  thereto  "and  throw  their  contributions  into  a 


SPECIAL  TAXES.  137 

box  through  a  slot,"  furnishes  the  beer  under  conditions  consti- 
tuting sale,  and  is  required  to  pay  special  tax.  (T.  D.  20119, 
1898.)  But. if  a  club  has  lockers  in  which  each  member  places  the 
liquor  he  desires  to. drink,  the  liquor  not  having  been  purchased 
from  the  club,  and  no  sale  is  made  by  the  club  but  each  mem- 
ber uses  his  own  liquor,  then  no  special-tax  liability  is  incurred. 
(T.  D.  1311.) 

Shipping  spirits  to  be  paid  for  on  delivery  [C.  O.  D.].  (United  C.  0.  D.  sales. 
States  v.  Shriver,  31  Int.  Ptev.  Rec,  54;  United  States  v.  Ott,  31 
ibid.,  79;  United  States  v.  Cline,  26  Fed.  Rep.,  515;  Jug  Liquor 
cases,  32  Int.  Rev.  Rec,  70;  Cir.  No.  285;  Cir.  No.  339,  modify- 
ing No.  285;  Dec.  No.  180  (1890);  36  Int.  Rev.  Rec,  13;  U.  S. 
v.  Orene  Parker  Co.,  121  Fed.  Rep.,  596.) 

Delivery  by  earner.  (United  States  v.  Lackey,  120  Fed. 
Rep.,  571.) 

C.  O.  D.  sales:  When  a  retail  liquor  dealer,  who  has  paid  the 
special  tax,  ships  liquors  by  express  on  orders  received  from 
another  town,  the  express  company  delivering  the  goods  and 
receiving  and  sending  to  the  seller  the  purchase  money,  no  addi- 
tional special  tax  is  required.  The  sale  is  completed,  and  the 
property  passes  when  tne  goods  are  delivered  to  the  carrier,  the 
collection  and  transmission  of  the  price  being  merely  an  incident 
of  the  express  business.  (Jones  v.  United  States  (1909),  Circuit 
Court  of  Appeals,  fourth  circuit,  Pritchard,  J.,  dissenting,  170 
Fed.  Rep.,  1.  (Decisions  contra  cited  in  dissenting  opinion 
of  Judge  Pritchard.)  U.  S.  v.  Adams  Express  Co.,  119  Fed. 
Rep.,  240. 

Ruling  as  to  shipment  of  spirits  to  shipper's  order,  bill  of 
lading  attached  to  draft.     (T.  D.  1426,  Oct.  16,  1908.) 

Liability  for  single  sale  or  occasional  acts.  (United  States  v. 
Earnhardt,  20  Int.  Rev.  Rec,  137;  United  States  v.  Shouse,  31 
ibid.,  120;  United  States  v.  Rennecke,  28  Fed.  Rep.,  847;  Let- 
ter to  Collector  Stearns,  31  Int.  Rev.  Rec,  141;  United  States  v. 
Jackson,  1  Hughes,  531;  Ledbetter  v.  United  States,  170  U.  S., 
606;  T.  D.  1199,  July  11,  1907.) 

One  is  engaged  in  the  business  of  a  retail  liquor  dealer  within 
the  meaning  of  section  3242,  Revised  Statutes,  if  he  has  liquor 
on  hand  to  be  sold  to  anyone  who  applies  for  it.  (United  States 
v.  Rennecke,  28  Fed.  Rep.,  847.)  _ 

"Canteens  "on  military  reservations.    (34  Int.  Rev.  Rec,  398). 

Post  exchanges  under  the  complete  control  of  the  Secretary 
of  War  as  governmental  agencies  not  subject  to  special  tax  as 
retail  liquor  dealers.  (Dugan  v.  United  States,  34  Ct.  Cls.  (1899) 
458;  T.  D.  21285.) 

Sale  of  brandy  peaches.  (United  States  v.  Stafford,  20  Fed. 
Rep.,  720;  30  Int.  Rev.  Rec,  247;  18  ibid.,  105;  T.  D.  19031, 
1898.)  _ 

No  liability  for  sale  of  warehouse  certificates  for  whisky  in 
bond.     (T.  D.  1278,  Nov.  19,  1907.) 

Selling  at  same  time  different  packages  of  liquors,  aggregating 
over  five  gallons.  (10  Int.  Rev.  Rec,  98;  31  ibid.,  317;  United 
States  v.  Hart,  28  ibid.,  226;  United  States  v.  James,  30  ibid., 
24,  29;  United  States  v.  Shouse,  31  ibid.,  120.) 

Retail  liquor  dealer  not  entitled  to  accept  order  for  a  quantity 
of  spirits  amounting  to  5  gallons  or  more,  even  though  he  fills  the 
order  by  shipping  from  time  to  time  less  than  5  gallons.  (T. 
D.  655.) 

Ruling  as  to  constructive  delivery.  (Letter  to  C.  W.  Moulton, 
23  Int.  Rev.  Rec,  253;  T.  D.  737.) 

Constructive  delivery.  (De  Bary  v.  Souer,  101  Fed.  Rep. 
425.) 

Liability  of  party  for  negotiating  sales  for  others.    (30  Int.  Rev.     Agents  negotia- 
Rec,  93;  United  States  v.  Howell,  30  Int.  Rev.  Rec,  246.)         t^g  sales. 

A  person  is  not  liable  as  a  dealer  in  liquors  simply  for  negotiating 
sales  for  others,  provided  he  has  neither  actual  nor  constructive 
possession;  but  if  he  has  such  possession,  so  that  a  delivery, 
either  actual  or  constructive,  is  made  by  him,  such  a  delivery 


138 


SPECIAL  TAXES. 


Physicians  and 
druggists. 


Bitters. 


as  vests  the  ownership  in  the  purchaser,  he  is  liable  to  the  tax, 
even  though  he  himself  is  not  the  owner  of  the  liquors.  (14  Int. 
Rev.  Rec,  193.) 

Taking  orders  for  spirits  does  not  render  a  person  liable  as 
liquor  dealer.     (U.  S.  v.  Chevalier,  107  Fed.  Rep.  434;  T.D.310.) 

Selling  liquors  as  pretended  agent.  (United  States  v.  Herman 
Rose,  28  Int.  Rev.  Rec,  274.) 

One  subscriber  ordering  and  receiving  liquors  purchased  by 
subscription.     (T.  D.  1474.) 

Societies  receiving  commissions  on  sales  of  liquors  induced  by 
them.     (T.  D.  1486.) 

Where  goods  are  shipped  with  privilege  of  trial  before  payment. 
(T.  D.  1492.) 

Question  of  liability  of  merchants  to  special  tax  for  ordering 
liquors  for  others.  (27  Int.  Rev.  Rec,  234;  T.  D.  699;  T.  D. 
972;  T.  D.  1072;  T.  D.  1249.) 

If  commission  merchants  do  not  buy  or  sell,  but  upon  receipt 
of  orders  from  their  foreign  customers  act  merely  as  purchasing 
agents,  they  do  not  involve  themselves  in  special-tax  liability. 
(T.  D.  823.) 

If  a  person  buys  spirits  in  his  own  name,  and  has  the  same 
buled  to  him  in  his  own  name,  and  deals  it  out  from  time  to  time, 
as  called  for,  he  is  a  retail  liquor  dealer  although  the  liquor  was 
disposed  of  without  profit  to  himself,  and  he  purchased  it  with 
money  advanced  by  others.     (U.  S.  v.  Angell,  11  Fed.  Rep.,  34.) 

Selling  liquors  on  fair  grounds.  (18  Int.  Rev.  Rec,  81;  T.  D. 
169. 

Importers  who  sell  spirits  in  bond  are  wholesale  liquor  dealers. 
(United  States  v.  McCullough,  22  Int.  Rev.  Rec,  202.) 

Commission  merchants  who,  at  the  request  of  foreign  corre- 
spondents, occasionally  purchase  liquors  in  quantity,  and  take 
charge  of  shipping  the  same,  and  either  charge  the  costs  and 
their  commissions  upon  their  books  to  the  account  of  such  cor- 
respondents^ or  draw  upon  them  for  the  full  amount  of  the 
purchase  price,  with  costs  and  commissions,  are  "wholesale 
liquor  dealers."  (Quinn  v.  Dimond  et  al.  (1896),  72  Fed.  Rep., 
993.) 

An  importer  of  alcoholic  liquors  or  compounds  thereof  who 
holds  a  special-tax  stamp  as  a  wholesale  liquor  dealer  at  his 
place  of  business  in  one  city,  and  sells  and  delivers  packages 
of  these  liquors  at  a  place  of  storage  in  another  city,  without 
prior  constructive  delivery  to  the  purchasers  at  the  place  where 
such  stamp  is  held,  is  required  to  pay  additional  special  tax  and 
to  take  out  the  requisite  stamp  for  that  storage  place.  (T.  D. 
19281,  1898.)  (De  Bary  et  al.  v.  Dunne,  172  Fed.  Rep.,  940; 
T.  D.  1550.) 

The  law  does  not  treat  distilled  spirits  as  a  drug  or  medicine, 
and  doctors  and  druggists  are  not  privileged  to  sell  it  as  such 
without  first  paying  the  special  tax  required  of  dealers  in  liquor. 
(United  States  v.  Stafford,  20  Fed.  Rep.,  720.) 

Druggist  liable  criminally  for  sales  by  clerk.  (U.  S.  v.  White, 
42  Fed.  Rep.,  138,  1890.) 

A  prad  ifini^  physician  who  prescribed  whisky  for  his  patients, 
furnishing  the  liquor  himself  and  charging  the  usual  price,  is 
liable.  (United  States?'.  Smith,  45  Fed.  Rep.,  115;  T.D.4;  T.  D. 
806.)  But  not  if  spirits  or  wines  are  furnished  under  conditions 
which  do  not  constitute  sale  thereof.     (T.  D.  1355,  May  2,  1908.) 

Sale  of  bitters.  (29  int.  Rev.  Rec,  305;  33  ibid.,  17;  United 
States  v.  I  'ota,  17  Fed.  Rep.,  734;  29  Int.  Rev.  Rec,  249;  Hos- 
tetter's  Bitters,  29  ibid.,  273;  United  States  v.  Bibb,  33  ibid  , 
391.) 

Bitters  sold  as  a  beverage.  The  fact  that  the  bitters  were 
labeled  patent  medicine  and  that  the  defendant  was  advised 
that  lie  might  sell  the  same  without  a  license  was  no  excuse. 
Parties  held  liable  as  liquor  dealers.  (United  States  v.  Foster, 
39  Int.  Rev.  Rec,  9.) 


SPECIAL   TAXES.  139 

The  law  is  not  to  be  avoided  by  mere  deceptive  names,  and  if  Medicinal  com. 
alcoholic  beverages  in  which  the  essential  ingredient  is  distilled  Pounds- 
spirits,  disguised  by  aromatic  or  other  drugs,  are  commonly 
bought  and  sold  as  and  for  intoxicating  beverages,  the  same  are 
not  to  be  classed  as  patent  or  proprietary  medicines,  and  the 
seller  is  liable  to  the  tax  as  a  retail  liquor  dealer.  (United 
States  v.  Wilson;  district  court,  eastern  district  of  Missouri 
(Article  labeled  as  an  appetiser,  1895),  69  Fed.  Rep.,  144;  41 
Int.  Rev.  Rec.,411.;  U.  S.  v.  Bray,  113  Fed.  Rep.,  1008;  U.S.  v. 
Morfew  (1905),  136  Fed.  Rep.,  491.) 

The  sale  of  beer,  whisky,  or  other  alcoholic  liquor,  which  has 
not  been  combined  with  drugs  or  other  medicinal  substances, 
involves  the  seller  in  special-tax  liability  even  though  it  be  sold 
under  a  label  as  a  medicine.  _  (T.  D.  19090,  1898.) 

Liability  for  selling  alcoholic  medicinal  compounds.  (United 
States  v.  Starnes,  35  Int.  Rev.  Rec,  136;  37  Fed.  Rep.,  665; 
United  States  v.  Stubblefield,  40  Fed.  Rep.,  454;  T.  D.  1251 
(new  ruling);  Cir.  No.  707;  T.  D.  1255.) 

To  be  classed  as  medicinal,  an  alcoholic  compound  should 
carry  with  each  1-ounce  dose  approximately  a  U.  S.  P.  dose  of 
some  drug  or  drugs  of  recognized  therapeutic  value.  (T.  D.  1510, 
June  17, 1909;  T.  D.1514.) 
_  Revised  list  to  July  1,  1910,  of  alcoholic  medicinal  prepara- 
tions for  the  sale  of  which  special  tax  is  required.  Subject  to 
further  revision  periodically.     (T.  D.  1643.) 

A  fermented  liquor  made  from  oranges,  sugar,  and  elder  bios-     Wine. 
soms  is  wine  within  the  meaning  of  the  internal-revenue  laws, 
and  the  special  tax  of  a  liquor  dealer  is  required  to  be  paid  for 
its  sale.     (T.  D._  19089,  1898.) 

Where  wine  is  used  for  making  a  "casing  fluid  for  leaf  to- 
bacco," unless  the  material  added  to  the  wine  changes  its  char- 
acter so  that  it  is  neither  a  potable  liquid  nor  a  liquid  coming 
under  the  head  bi  distilled  spirits,  wine,  or  malt  liquor,  special 
tax  is  required  to  be  paid  for  its  manufacture  and  sale,  even 
though  it  be  sold  only  to  cigar  manufacturers  for  use  in  leaf 
tobacco.     (T.  D.  19333,  1898.) 

Special  tax  is  not  required  to  be  paid  for  the  sale  of  cider;  that     Cider. 
is,  the  juice  of  apples,  whether  xinferrnented  or  fermented,  and 
whether  it  is  "hard  cider"  (strongly  alcoholic)  or  not,  if  no 
distilled  spirits,  or  wine,  or  other  alcoholic  liquor  has  been 
added  thereto. _   (T.  D.  20309,  1898;  T.  D.  1174,  May  28,  1907.) 

Nothing  is  cider  except  the  juice  of  apples,  fermented  or  un- 
fermented.  Imitation  cider,  mixed  with  distilled  spirits  or  wine, 
is  a  compound  liquor,  for  the  manufacture  or  sale  of  which 
special  tax  is  required.  (T.  D.  20097,  1898;  U.  S.  v.  Lewis, 
T.  D.  801.) 

Concerning  the  collection  of  special  tax  as  liquor  dealers  from 
distillers  who  sell  distilled  spirits  in  bottles  put  up  under  the 
act  of  March  3,  1897.  (Cir.  No.  481,  Aug.  18,  1897;  43  Int.  Rev. 
Rec,  318.) 

Auctioneer  selling  liquors.     (T.  D.  1300.) 

Express  company  selling  liquors  to  secure  charges.  (T.  D. 
715.) 

Selling  liquors  by  peddlers  prohibited.  (Cir.  No.  143;  22  Int. 
Rev.  Rec,  37;  22  ibid.,  157;  T.  D.  584;  T.  D.  951.) 

Fifth  [Act  of  Feh.  8,  1875  (18  Stat,  309),  as  amended 
by  sec.  4,   act  of  Mar.   1,    1879  (20  Stat  327).}     Retail inSSPuqjg?" 
dealers  in  malt  liquors  shall  pay  twenty  dollars. 

Every  person  who  sells,  or  offers  for  sale,  malt  liquors  in 
less  quantities  than  five  gallons  at  one  time,  but  who  does 
not  deal  in  spirituous  liquors,  shall  be  regarded  as  a  retail 
dealer  in  malt  liquors. 

Retail  dealers  in  malt  liquors  can  not  retail  spirituous  liquors 
or  wines  without  paying  special  tax  as  retail  liquor  dealers. 


140  SPECIAL   TAXES. 

No  refund  of  a  tax  to  a  R.  M.  L.  D.  who  becomes  a  R.  L.  D. 
(33  Int.  Rev.  Rec,  397;  T.  D.  415.) 

Special  tax  on  bottled  beer;  when  not  imposed.  (Letter  to 
Jos.  Schlitz  Brewing  Co.,  April  5,  1897;  43  Int.  Rev.  Rec,  193.) 

Dealers  in  small  beer.  (T.  D.  19154,  1898.)  See  note  under 
section  3244,  first  paragraph,  page  133. 

Liability  of  express  companies.  The  actual  ownership  of  the 
property  is  not  essential  to  fix  upon  the  trafficker  the  quality 
of  a  dealer  in  liquors.  The  statute  attaches  to  him  the  office 
of  a  dealer  when  he  ' '  sells  or  offers  for  sale  malt  liquors. ' '  (West- 
ern Express  Co.  v.  United  States,  141  Fed.  Rep.,  28;  T.  D.  965.) 

Peddling  fermented  liquors.  (26  Int.  Rev.  Rec,  169;  T.  D. 
494.) 

wholesale  deal-     Wholesale    dealers    in    malt    liquors    shall    pay    fifty 
uors!11  malt  liq"  dollars. 

Every  person  who  sells,  or  offers  for  sale,  malt  liquors 
in  quantities  of  not  less  than  five  gallons  at  one  time, 
but  who  does  not  deal  in  spirituous  liquors  at  wholesale, 
shall  be  regarded  as  a  wholesale  dealer  in  malt  liquors: 
Brewers  not  iia-     Provided,  That  no  brewer  shall  be  required  to  pay  a 
tax,  when.ealer(§  special  tax  as  a  dealer  by  reason  of  selling  in  the  original 
3349-)  stamped  packages  whether  at  the  place  of  manufacture 

or  elsewhere,  malt  liquors  manufactured  by  him  or  pur- 
chased and  procured  by  him  in  his  own  casks  or  vessels, 
under  the  provisions  of  section  thirty-three  hundred  and 
forty-nine  of  the  Revised  Statutes;  but  the  quantity  of 
malt  liquors  so  purchased  shall  be  included  in  calculating 
the  liability  to  brewer's  special  tax  of  both  the  brewer 
who  manufactures  and  sells  the  same  and  the  brewer  who 
purchases  the  same. 

And  it  is  hereby  provided,  That  no  further  collection  of 
special  tax  as  retail  dealers  in  malt  liquors  shall  be  made 
from  brewers  for  selling  malt  liquors  of  their  own  manu- 
facture in  the  original  stamped  eighth-barrel  package.     * 
No  special  tax     But  no  special  tax  shall  be  held  to  accrue  on  a  sale  of 
daryaleofncyerfld of  distilled  spnits,  wines,  or  malt  liquors  made  by  a  person 
court,  etc.  wno  js  not  otherwise  a  dealer  in  liquors,  where  such 

spirits,  wines,  or  liquors  have  been  received  by  the  per- 
son so  selling  as  security  for  or  in  payment  of  a  debt,  or 
as  executor,  administrator,  or  other  fiduciary,  or  have 
been  levied  on  by  any  officer,  under  order  or  process  of 
any  court  or  magistrate,  and  where  such  spirits  are  sold 
by  such  person  in  one  parcel  only,  or  at  public  auction 
in  parcels  not  less  than  twenty  wine  gallons,  nor  shall 
such  tax  be  held  to  accrue  on  a  sale  made  by  a  retiring 
partner,  or  the  representatives  of  a  deceased  partner  to 
the  incoming,  remaining,  or  surviving  partner  or  partners 
No  wholesale  of  a  firm ;  nor  shall  the  special  tax  of  a  wholesale  liquor 
saeielerof  entire  dealer  or  wholesale  dealer  in  malt  liquors  be  held  to 
deaien  °f  retail  apply  to  a  retail  dealer  in  liquors  or  a  retail  dealer  in 
malt  liquors,  because  of  such  retail  dealer  selling  out  his 
entire  stock  of  liquors  in  one  parcel,  or  in  parcels  em- 
bracing not  less  than  his  entire  stock  of  distilled  spirits, 
of  wines,  or  of  malt  liquors;  and  section  tliirty-tliree  hun- 
dred and  nineteen  of  the  Revised  Statutes  shall  not  be 
held  to  proliibit  a  rectifier  or  liquor  dealer  from  purchas- 


SPECIAL  TAXES.  141 

ing,  in  quantities  greater  than  twenty  wane-gallons,  the 
distilled  spirits  sold  in  one  parcel  as  aforesaid. 

Sale  of  spirits,  etc.,  by  sheriff.     (33  Int.  Rev.  Rec.,  405.) 

Brewers  shipping  bottled  beer  C.  O.  D.  (33  Int.  Rev. 
Rec.,  77.) 

A  brewer  holding  a  special-tax  stamp  of  the  smaller  class  is 
not  required  to  pay  special  tax  as  a  brewer  of  the  larger  class 
until  the  entire  quantity  of  beer  produced  by  him  within  the 
special-tax  year  amounts  to  500  barrels.  As  soon  as  the  quanti- 
ties produced  month  by  month  within  that  period  amount  in 
the  aggregate  to  500  barrels  he  must  pay  the  special  tax  of  a 
brewer  of  the  larger  class  for  the  entire  year  ($100).  He  may 
then  send  in  his  stamp  of  the  smaller  class  for  redemption. 
(T.  D.  19439,  1898.) 

Brewers  who  establish  places  of  storage  for  bottled  beer,  and 
complete  sales  by  deliveries  therefrom  to  purchasers  in  whole- 
sale quantities,  are  required  to  pay  special  tax  as  wholesale 
dealers  in  malt  liquor  at  every  such  place.  (T.  D.  19440,  1898; 
but  see  T.  D.  21619.) 

Where  a  brewer  ships  bottled  beer  marked  for  delivery  to 
persons  who  had  ordered  it,  but  consigns  and  waybills  the  beer 
in  general  terms  to  his  agent,  instead  of  shipping  it  to  these 
persons,  sale  is  made  at  the  time  and  place  of  the  actual  delivery 
by  the  agent.     (T.  D.  21852,  1899;  T.  D.  1369;  T.  D.  1426.) 

Persons  calling  themselves  agents  of  brewers  in  the  sale  of 
original  stamped  packages  of  beer  should  furnish  abstracts  from 
the  books  of  the  brewers,  showing  how  the  beer  is  charged, 
or  billed,  and  also  a  statement  under  oath  by  the  brewers, 
showing  that  the  beer  remains  absolutely  their  property  until 
sold,  and  that  these  persons  are  under  their  orders  and  control 
in  making  such  sales.     (T.  D.  21019,  1899.) 

They  must  show  that  the  beer  remains  absolutely  the  prop- 
erty of  the  brewers  until  sold  by  them  on  account  of  the  brewers, 
and  not  on  their  own  account.     (T.  D.  21836,  1899.) 

A  fermented  malt  liquor,  though  diluted  to  such  an  extent 
as  to  be  called  nonintoxicating,  is  a  beverage  for  the  sale  of 
which  special  tax  must  be  paid  under  the  internal-revenue 
laws.     (T.  D.  21473,  1899.) 

The  executor  of  a  person  who  had  been  a  manufacturer  of 
wine  is  entitled  to  sell  the  wine  made  by  his  testator  at  one 
"business  office "  in  any  quantities,  small  or  large,  through  an 
auctioneer,  without  the  payment  of  special  tax;  but  if  the 
testator  was  not  the  manufacturer  of  the  wine,  the  executor 
or  his  auctioneer  is  not  entitled  to  sell  the  wine  without  paying 
special  tax  therefor,  unless  he  disposes  of  the  entire  quantity  of 
wine  at  a  single  sale.     (T.  D.  21648,  1899.) 

Executor  selling  liquor.     (T.  D.  419.) 

Repeal  of  certain  special  taxes. — Section  26,  act  of  October  1, 
1890,  repealed  on  and  after  May  1,  1891,  special  taxes  upon 
dealers  in  leaf  tobacco,  retail  dealers  in  leaf  tobacco,  dealers 
in  tobacco,  manufacturers  of  tobacco,  manufacturers  of  cigars, 
and  peddlers  of  tobacco. 

Special  taxes  were  reimposed  upon  the  above-named  occu- 
pations, except  retail  dealers  in  leaf  tobacco  and  peddlers  of 
tobacco,  by  the  act  of  June  13,  1898,  which  were  repealed  by 
section  5,  act  of  April  12,  1902,  taking  effect  July  1,  1902. 

Sec.  3  [act  of  Aug.  2, 1886  (24  Stat,  209),  as  amended  by 
sec.  2  of  the  act  of  May  9,  1902  (32  Stat.  193)].  Manufac- 
turers of  oleomargarine  shall  pay  six  hundred  dollars. 
Every  person  who  manufactures  oleomargarine  for  sale 
shall  be  deemed  a  manufacturer  of  oleomargarine. 

And  any  person  that  sells,  vends,  or  furnishes  oleomar- 
garine for  the  use  and  consumption  of  others,  except  to  his 
own  family  table  without  compensation,  who  shall  add  to 


142  SPECIAL   TAXES. 

or  mix  with  such  oleomargarine  any  artificial  coloration 
that  causes  it  to  look  like  butter  of  any  shade  of  yellow  ?hall 
also  be  held  to  be  a  manufacturer  of  oleomargarine  within 
the  meaning  of  said  Act,  and  subject  to  the  provisions 
thereof 

See  U.  S.  v.  White  &  Paller  (T.  D.  1334);  U.  S.  v.  Shipley  et  al. 
(T.  D.  1504);  Zinn  Co.  v.  U.  S.  (T.  D.  1517.) 

manSturSl  Wholesale  dealers  in  oleomargarine  shall  pay  four  hun- 
and  dealers.  dred  and  eighty  dollars.  Every  person  who  sells  or  offers 
for  sale  oleomargarine  in  the  original  manufacturer's  pack- 
ages shall  be  deemed  a  wholesale  dealer  in  oleomargarine. 
But  any  manufacturer  of  oleomargarine  who  has  given 
the  required  bond  and  paid  the  required  special  tax,  and 
who  sells  only  oleomargarine  of  his  own  production,  at  the 
place  of  manufacture,  in  the  original  packages  to  which 
the  tax-paid  stamps  are  affixed,  shall  not  be  required  to 
pay  the  special  tax  of  a  wholesale  dealer  in  oleomargarine 
on  account  of  such  sales. 

When  a  broker  in  oleomargarine  is  not  a  wholesale  dealer. 
(32  Int.  Rev.  Rec,  373.) 

Retail  dealers  in  oleomargarine  shall  pay  forty-eight 
dollars.     Every  person  who  sells  oleomargarine  in  less 
quantities  than  ten  pounds  at  one  time  shall  be  regarded 
as  a  retail  dealer  in  oleomargarine. 
32I!   3235   lie      ^^  sections  thirty-two  hundred  and  thirty-two,  thirty- 
3237;  3238'  3239' two  hundred  and  thirty-three,  thirty-two  hundred  and 
a2p°P  lfc'a  b3?e3,  thirty-four,  thirty-two  hundred  and  thirty-five,  thirty- 
Pp.  125-132.        two   hundred    and   thirty-six,    thirty-two   hundred    and 
thirty-seven,  thirty-two  hundred  and  thirty-eight,  thirty- 
two  hundred  and  thirty-nine,  thirty-two  hundred  and 
fort}7,  thirty-two  hundred  and  forty-one,  and  thirty-two 
hundred  and  forty-three  of  the  Revised  Statutes  of  the 
United  States  are,  so  far  as  applicable,  made  to  extend  to 
and  include  and  apply  to  the  special  taxes  imposed  by  this 
section,  and  to  the  persons  upon  whom  they  are  imposed: 
Exception.  Provided  further,    That  wholesale  dealers  who  vend  no 

other  oleomargarine  or  butterine  except  that  upon  which  a 
tax  of  one-fourth  of  one  per  cent  per  pound  is  imposed  by 
this  Act,  as  amended,  shall  pay  two  hundred  dollars;  and 
such  retail  dealers  as  vend  no.  other  oleomargarine  or  butter- 
ine except  that  upon  which  is  imposed  by  this  Act,  as 
amended,  a  tax  of  one-fourth  of  one  cent  per  pound  shall 
pay  six  dollars. 

Rulings  as  to  sales  of  oleomargarine.  (32  Int.  Rev.  Rec,  365, 
381.) 

The  50  per  cent  penalty  imposed  by  section  3170,  Revised 
Statute-,  does  not  apply  to  the  taxes  imposed  by  the  oleomarga- 
rine act,  (Schafer  v.  Craft,  144  Fed.  Rep.,  907;  153  Fed.  Rep., 
175;  154  Fed.  Rep.,  1002.  (irier  v.  Tucker.  150  Fed.  Rep.,  658; 
160  Fed.  Rep.,  61 1,  T.  D.  1455.) 

Liability  as  wholesale  dealer.  (Judd  0.  ITartzcll  v.  The 
United  States,  T.  D.  (1900),  2;  83  Fed.  Rep.,  1002.) 

Manufacturers  and  wholesale  dealers  may  sell  oleomargarine 
only  in  original  stamped  packages  of  not  less  than  10  pounds. 


SPECIAL   TAXES.  143 

A  retail  dealer  must  sell  only  from  original  stamped  packages 
in  quantities  of  not  more  than  10  pounds,  packed  in  new 
wooden  or  paper  packages  marked  with  his  name  and  address, 
and  the  word  ''Oleomargarine"  in  large  letters  printed  or 
branded  thereon.     (See  sec.  6,  act  Aug.  2,  1886,  p.  294.) 

A  sheriff  or  other  officer  who  levies  upon  and  sells  the  oleo- 
margarine belonging  to  the  stock  of  goods  of  a  retail  dealer  in 
oleomargarine  is  not  required  to  pay  special  tax  therefor,  inas- 
much as  he  is  acting  in  his  official  character,  in  the  discharge 
of  lawful  duties.     (T.  D.  730.) 

Retail  dealers  are  not  permitted  to  peddle  oleomargarine  on 
the  streets.     (T.  D.  610.)   ■ 

Liability  of  agents  or  brokers  receiving  and  transmitting 
orders  for  oleomargarine  to  manufacturers.  Unless  sales  are 
fully  completed  at  the  factory  to  the  persons  ordering,  special 
tax  is  required  to  be  paid  at  the  place  of  delivery.  (T.  D.  18978, 
1898.) 

Parties  selling  oleomargarine  are  liable  to  special  tax,  although 
they  are  ignorant  that  the  substance  is  oleomargarine.  (Charge 
of  Judge  Jackson  in  Hubbard  &  Paul  v.  Collector  Gilkeson,  U.  S. 
circuit  court,  district  of  West  Virginia.  T.  D.  19246,  1898; 
Eagle  v.  Nowlin,  collector.  Decision  of  Judge  Baker  (1899), 
94  Fed.  Rep.,  646,  T.  D.  21228.) 

Dealers  in  colored  and  uncolored  oleomargarine. — Where  a  per- 
son pays  special  tax  as  a  dealer  in  uncolored  oleomargarine  and 
thereafter  desires  to  sell  also  colored  oleomargarine,  the  only 
course  for  him  to  pursue  is  to  pay  the  special  tax  at  the  higher 
rate  for  the  entire  period  to  the  close  of  the  year,  and  take  out 
the  requisite  special-tax  stamp,  and  then  send  in  for  redemp- 
tion the  special-tax  stamp  taken  out  at  the  lower  rate.  (T.  D. 
526.) 

Sec.  4  [Act  of  May  9,  1902  (32  Stat.,  195.)]     *     *     * 

That  special  taxes  are  imposed  as  follows: 

Manufacturers  of  process  or  renovated  butter  shall  pay  ms^c^fJ^Icrf 
fifty  dollars  per  year  and  manufacturers   of  adulterated  renovated     and 
butter   shall   pay   six   hundred   dollars   per  year.     Every  butter.1  e  r  a  l  e  d 
person  who  engages  in  the  production  of  process  or  reno- 
vated butter  or  adulterated  butter  as  a  business  shall  be 
considered  to  be  a  manufacturer  thereof 

Coopersville  Cooperative  Creamery  v.  Lemon.  (163  Fed.  Rep., 
145;  T.  D.  1371.) 

~\Yholesale  dealers  in  adulterated  butter  shall  pay  a  tax  de|fefsia-ntaadiii- 
of  four  hundred  and  eighty  dollars  per  annum,  and  retail  terated  butter. 
dealers  in  adulterated  butter  shall  pay  a  tax  of  forty-eight 
dollars  per  annum.     Every  person  who  sells  adulterated 
butter  in  less  quantities  than  ten  pounds  at  one  time  shall 
be  regarded  as  a  retail  dealer  in  adulterated  butter. 

Every  person  who  sells  adulterated  butter  shall  be  ^-fln^aler  de" 
yarded  as  a  dealer  in  adulterated  butter.  And  sectiojis 
thirty-two  hundred  and  thirty-two,  thirty-two  hundred  and 
thirty-three,  thirty-two  hundred  and  thirty-four,  thirty- 
two  hundred  and  thirty-five,  thirty-two  hundred  and 
thirty-six,  thirty-two  hundred  and  thirty-seven,  thirty-two 
hundred  and  thirty-eight,  thirty-two  hundred  and  thirty- 
nine,  thirty-two  hundred  and  forty,  thirty-two  hundred  and 
forty-one,  and  thirty-two  hundred  and  forty-three  of  the 
Revised  Statutes  of  the  United  States  are,  so  far  as  appli- 
cable, made  to  extend  to  and  include  and  apply  to  the  special 


144 


SPECIAL    TAXES. 


Retail  dealers. 


taxes  imposed  hy  this  section  and  to  the  person  upon  whom 
they  are  imposed. 

3jC  5j£  5fS  ^  -P 

awSiSSr     Sec-  3-  \-Act  of  June  6,  1896  (29  Stat,  253).} 

Manufacturers  of  filled  cheese  shall  pay  four  hundred 
dollars  for  each  and  every  factory  per  annum.  Every 
person,  firm,  or  corporation  who  manufactures  filled 
cheese  for  sale  shall  be  deemed  a  manufacturer  of  filled 
whoiesaiecheese.  Wholesale  dealers  in  filled  cheese  shall  pay  two 
cheese!  m  filled  hundred  and  fifty  dollars  per  annum.  Every  person, 
firm,  or  corporation  who  sells  or  offers  for  sale  filled  cheese 
in  the  original  manufacturer's  packages  for  resale,  or  to 
retail  dealers  as  hereinafter  defined,  shall  be  deemed  a 
wholesale  dealer  in  filled  cheese.  But  any  manufacturer 
of  filled  cheese  who  has  given  the  required  bond  and  paid 
the  required  special  tax,  and  who  sells  only  filled  cheese 
of  his  own  production,  at  the  place  of  manufacture,  in  the 
original  packages,  to  which  the  tax-paid  stamps  are  af- 
fixed, shall  not  be  required  to  pay  the  special  tax  of  a 
wholesale  dealer  in  filled  cheese  on  account  of  such  sales. 
Retail  dealers  in  filled  cheese  shall  pay  twelve  dollars 
per  annum.  Every  person  who  sells  filled  cheese  at  retail, 
not  for  resale,  and  for  actual  consumption,  shall  be  re- 
regarded  as  a  retail  dealer  in  filled  cheese,  and  sections 
thirty-two  hundred  and  thirty-two,  thirty-two  hundred 
and  thirty-three,  thirty-two  hundred  and  thirty-four, 
thirty-two  hundred  and  thirty-five,  thirty-two  hundred 
and  thirty-six,  thirty-two  hundred  and  thirty-seven, 
thirty-two  hundred  and  thirty-eight,  thirty-two  hundred 
and  thirty-nine,  thirty-two  hundred  and  forty,  thirty- 
two  hundred  and  forty-one,  thirty-two  hundred  and  forty- 
three  of  the  Revised  Statutes  of  the  United  States  are,  so 
far  as  applicable,  made  to  extend  to  and  include  and 
apply  to  the  special  taxes  imposed  by  this  section  and  to 
the  persons,  firms,  or  corporations  upon  whom  they  are 
when imposed:  Provided,  That  all  special  taxes  under  this  Act 
shall  become  due  on  the  first  day  of  July  in  every  year,  or 
on  commencing  any  manufacture,  trade,  or  business  on 
which  said  tax  is  imposed.  In  the  latter  case  the  tax 
shall  be  reckoned  proportionately  from  the  first  day  of 
the  month  in  which  the  liability  to  the  special  tax  com- 
mences to  the  first  day  of  July  following. 

Sec.  4.  That  every  person,  firm,  or  corporation  who  car- 
ries on  the  business  of  a  manufacturer  of  filled  cheese 
without  having  paid  the  special  tax  therefor,  as  required 
by  law,  shall,  besides  being  liable  to  the  payment  of  the 
tax,  be  lined  not  less  than  four  hundred  dollars  and  not 
more  than  t  hree  thousand  dollars;  and  every  person,  firm, 
or  corporation  who  carries  on  the  business  or  a  wholesale 
dealer  in  filled  cheese  without  having  paid  the  special  tax 
therefor,  as  required  by  law,  shall,  besides  being  liable  to 
the  payment  of  the  tax,  be  lined  not  less  than  two  hun- 
dred and  fifty  dollars  nor  more  than  one  thousand  dollars; 


Taxes, 
due. 


Penalties. 


SPECIAL    TAXES.  145 

and  every  person,  firm,  or  corporation  who  carries  on  the 
business  of  a  retail  dealer  in  filled  cheese  without  having 

Eaid  the  special  tax  therefor,  as  required  by  law,  shall, 
esides  being  liable  for  the  payment  of  the  tax,  be  fined 
not  less  than  forty  nor  more  than  five  hundred  dollars  for 
p'i  c  n  o  ti  d  P"vpi*v  oiTGYisc 

Sec.  36.  [Act  of  June  13,  1898  (30  Stat,  448).]  .  That  an^^j£rer0sf 
every  person,  firm,  or  corporation,  before  engaging  in  the mixetfflour. 
business  of  making,  packing,  or  repacking  mixed  flour, 
shall  pay  a  special  tax  at  the  rate  of  twelve  dollars  per 
annum,  the  same  to  be  paid  and  posted  in  accordance  with 
the  provisions  of  sections  thirty-two  hundred  and  forty- 
two    and    thirty-two    hundred    and    thirty-nine    of    the 
Revised  Statutes,  and  subject  to  the  fines  and  penalties    Penalties. 
therein  imposed  for  any  violation  thereof. 

Sec.  3245.  [Obsolete.] 

Sec.  3246.  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  (£0  toSJ^iy  S^St* 
Stat,  327).]     Nothing  in  this  chapter  shall  be  construed neragnor  apothe- 
to  impose  a  special  tax  upon  vintners  who  sell  wine  of  cases, 
their  own  growth,  or  manufacturers  who  sell  wine  pro- 
duced from  grapes  grown  by  others,  at  the  place  where 
the  same  is  made  or  at  the  general  business  office  of  such 
vintner  or  manufacturer:  Provided,  That  no  vintner  or 
manufacturer  shall  have  more  than  one  office  for  the  sale 
of  such  wine  that  shall  be  exempt  from  special  tax  under 
this  act ;  nor  shall  any  special  tax  be  imposed  upon  apoth- 
ecaries as  to  wines  or  spirituous  liquors  which  they  use 
exclusively  in  the  preparation  or  making-up  of  medicines. 

Limitation  of  a  druggist's  right  to  sell  liquors  without  paying 
special  tax.     (34  Int.  Rev.  Rec,  157.) 

An  apothecary,  who  bona  fide  uses  spirituous  liquors  in  the 
preparation  of  a  medicine  to  be  used  as  such  and  not  as  a  bev- 
erage, does  not  violate  section  3242,  by  not  paying  the  special 
tax  required  of  a  retail  liquor  dealer.  (United  States  v.  Calhoun, 
39  Fed.  Rep.,  604.) 

Druggists  compounding  medicines.     (T.  D.  933;  T.  D.  1514.) 

The  fact  that  a  person  is  an  authorized  liquor  dealer  under  the 
internal-revenue  laws  does  not  prevent  him  from  engaging  also 
in  the  compounding  of  medicines;  and  if  he  does  so,  using  spirits 
in  combination  with  roots,  herbs,  or  drugs,  and  sells  the  com- 
pound only  under  a  label  specifying  the  diseases  for  which  it  is 
held  out  as  a  remedy,  he  is  an  apothecary  within  the  exempting 
provision  of  section  3246.     (T.  D.  19412,  1898.) 

The  exemption  from  special  tax  granted  druggists  for  use  of 
spirits  or  wine  by  this  section  relates  only  to  medicines  in  which 
the  spirits  or  wine  used  have  been  changed  in  nature  and  made 
clearly  medicinal  by  the  addition  of  drugs.     (T.  D.  1019. ) 

"What   alcoholic  compounds  may  be  classed  as  medicinal.     Medicinal  com- 
(T.  D.  1510,  June  17,  1909.)  i  Pounds- 

A  manufacturer  of  medicinal  compounds,  by  the  use  of  tax- 
paid  spirits  in  combination  with  drugs,  is  entitled  to  the  exemp- 
tion when  he  sells  such  compounds  only  under  labels  specifying 
the  diseases  for  which  they  are  held  out  as  remedies,  and  hisuse 
of  a  pharmaceutical  still  in  the  preparation  of  these  medicines 
does  not  involve  him  in  liability  under  the  internal-revenue  laws. 
(T.  D.  19347,  1898.) 

A  compound  of  medicinal  roots  and  distilled  spirits,  if  held 
out  not  merely  as  a  remedy  for  disease,  but  also  as  "bitters  for 
mixed  drinks,"  is  not  to  be  regarded  as  made  in  good  faith  for 

72170°— 11 10 


146  SPECIAL   TAXES. 

medicinal  use  only,  and  the  manufacturer  who  sells  it  under  such 
a  label  is  not  entitled  to  the  exemption,  and  is  required  to  pay 
special  tax  as  a  rectifier  and  liquor  dealer.  (T.  D.  19442,  1898.) 
Wine.  Where  grapes  are  pressed  at  one  place  and  the  juice  is  then 

carried  to  another  place  and  there  fermented,  the  latter  is  the 
place  of  manufacture  of  the  wine,  and  the  manufacturer  is  there 
permitted  by  the  provisions  of  section  3246  to  sell  it  without  pay- 
ing special  tax.     (T.  D.  19410,  1898.) 

A  person  who  sells  blackberry  wine  (a  fermented  liquor  made 
from  blackberry  juice)  is  required  to  pay  special  tax  as  a  liquor 
dealer  for  selling  the  wine,  unless  he  is  the  manufacturer  of  it 
and  has  made  it  from  berries  grown  by  himself  or  gathered  wild 
by  himself  or  by  persons  in  his  employ,  and  the  wine  is  sold  by 
him  only  at  the  place  of  manufacture  or  at  his  one  "general  busi- 
ness office."     (T.  D.  20366,  1898.) 

A  person  who  buys  elderberries  and  makes  wine  therefrom 
is  not  within  the  exempting  provision,  and  is  required  to  pay 
special  tax  for  selling  such  wine,  even  when  he  sells  it  at  the 
place  of  manufacture.     (T.  D.  20541,  1899.) 


Chapter  Four. 


DISTILLED  SPIRITS. 


Sec. 

3247.  Distiller,  definition  of. 

3248.  Distilled  spirits,   definition   of. 

3249.  Standard   of  proof  spirits;   instru- 

ments, etc. 

3250.  Gallon,  definition  of. 

3251  (amended).  Tax  on  distilled  spirits. 

[3251a.]  Tax  on  spirits;  lien. 

[32516.]  Alcoholic  compounds  from  Porto 
Rico. 

[3251c]  Manufacturer  of  sorghum  sugar 
authorized  to  remove  spirits  in 
bond,  free  of  tax,  for  use  in  manu- 
facture of  sugar  from  sorghum. 
Act  March  3,  1891. 

3252.  Adding  substances  to  create  ficti- 

tious proof;  penalty. 

3253.  Tax  on  spirits  removed  without  de- 

posit in  warehouse;  assessment. 

3254.  Products  of  distillation  containing 

spirits  taxable. 

3255  (amended).  Brandy  made  from  ap- 
ples, peaches,  or  grapes,  etc.,  ex- 
emptions. 

[3255a.]  Distilleries  of  30  gallons  ca- 
pacity or  less;  exemptions. 

3256.  Evading  tax;  penalty. 

3257.  Distiller  defrauding  or  attempting 

to  defraud ;  p enalties. 

3258.  Registry  of  stills;  penalties. 

3259.  Notice   of   intention    to    carry    on 

business  of  distiller  or  rectifier; 

penalty. 
3260  (amended) 

alty. 

[3260a.]  Refusal  to  approve  bond  in  cer- 
tain cases. 
3261.  Bond  not  to  be  approved  until  law 

is  complied  with;  penalty. 
3262  (amended).  Distiller  must  be  owner 

in     fee-simple,  or  have  written 

consent  of  owner,  etc. 
3263.  Plan  of  distillery. 
3264  (amended).  Surveys. 

3265.  Notice  by  manufacturer  of  a  still. 

Setting  up  a  still  without  per- 
mit; penalty. 

3266.  Distilling  on  certain  premises  pro- 

hibited; penalty. 

3267.  Receiving-cisterns. 

3268.  Breaking  locks,  gaining  access  to 

cisterns,  etc. ;  penalty. 

3269.  Furnaces,    tubs,    doublers,    worm- 

tanks;  penalty. 


Distiller's  bonds; 


pen- 


Sec.  > 

3270.  Apparatus  and  fastenings. 

3271.  Distillery  warehouses. 

[3271a.]  Use  of  warehouse  by  successors 
in  certain  cases. 

3272.  When  a  warehouse  becomes  unsafe. 

3273.  Storekeepers    have    charge    under 

direction  of  collector. 

3274.  Custody  and  management  of  ware- 

houses. 

3275.  Distiller  to   keep  distillery  accessi- 

ble; penalty. 
3276  (amended).     Authority  of  revenue 
officers  to  enter  distilleries.     Ob- 
structing officer;  penalty. 

3277.  Distillers  and  rectifiers  to  furnish 

facilities   for  examination;   pen- 
alty. 

3278.  Officers  can   break  up  ground   or 

walls  in  order  to  examine. 

3279.  Signs  to  be  put  up  by  distillers  and 

rectifiers;    penalty    for    neglect 
and  for  using  false  signs,  etc. 

3280.  Distillers  not  to  carry  on  business 

until  the  law  is  complied  with, 

nor  within  600  feet  of  a  rectifying 

establishment. 
[3281.]  Superseded  by  section  16,  act  of 

February  8,  1875.     Carrying  on 

distilling  without  giving  bond, 

etc.;  penalty. 
[3281a.]  Arrest  of  persons  operating  illicit 

distillery. 
3282  (amended).  Vinegar  establishments; 

penalty. 

3283.  No  process  for  distilling  between  11 

p.  m.  of  Saturday  and  1  a.  m.  of 
Monday;  penalty. 

3284.  Using  material  or  removing  spirits 

in  absence  of  storekeeper;  pen- 
alty. 
32S5  (amended).    Emptying    fermenting 
tubs. 

3286  (amended).     Drawing     off     water, 

cleansing   worm-tub,    etc.;   pen- 
alty. 

3287  (amended).     Removal  of  spirits  to 

warehouse. 

3288.  Tax-paid  spirits  not  to  remain  on 

distillery  premises. 

3289.  Forfeiture  of  unstamped  packages. 

3290.  Gauger  employing  distiller,  etc.,  to 

use  brands  or  perform  his  duties; 
penalty. 

147 


148 


DISTILLED   SPIRITS. 


Sec. 

3291.  Gauger's  returns. 

3292.  Fraudulent  gauging,  etc.;  penalty. 

3293  (amended).  Distiller's  entry  of  de- 

posit in  warehouse;  warehousing 
bonds. 
[3293a.]  "Warehousing  and  transportation 
bonds. 

3294  (amended).  Withdrawal  from  ware- 

house. 
[3294a.]  Allowance    for    leakage;    spirits 

may  be  reerauged,  etc. 
[32946.]  Act  .March  3,  1899.     Allowance 

for  loss. 
51-59.  Act   of  Aug.    28,    1894.     General 

bonded  warehouses  for  distilled 

spirits,  other  than  fruit  brandy. 
Acts  of  March  3,  1877,  and  October  18, 

1888.  Special  bonded  warehouses 

for  fruit  brandy. 

3295  (amended).  Gauging,  stamping,  and 

branding  spirits  removed  from 
warehouse. 

3296.  Removal,  concealment,  etc.,  of  spir- 
its contrary  to  law;  penalty. 

3297  and  [3297a.]  Alcohol  withdrawn  for 
scientific  purposes;  penalty. 

3298.  Power  of  officers  to  detain  packages 

forty-eight  hours. 

3299.  Forfeiture  of  spirits  unlawfully  re- 

moved from  distillery. 

3300.  Storekeeper   unlawfully   removing 

spirits,   or  allowing  same  to  be 
removed,  etc.;  penalty. 
3301   (amended).      Storekeepers'      ware- 
house books  and  returns. 

3302.  Storekeepers  to  have  charge  of  dis- 

tillery and  keep  account  of  ma- 
terials, etc. 

3303.  Distillers'  books. 

3304.  Books  to  be  open  to  inspection  and 

preserved  two  years. 

3305.  False  entries,  or  omitting  to  keep 

or  produce  books;  penalty. 
330G.  Using  false  weights  or  measures,  or 

unregistered  materials;  penalty. 
3307  and  3308.  Distillers'  return-. 

3309  (amended).  Monthly  examination  of 

distiller's  returns,  assessment, 
etc.,  capacity  tax. 

[3309a.]  Relief  from  assessments  for  defi- 
ciencies, etc.,  in  certain  cases. 

[33096.]  Assessments  to  be  at  rate  of  tax 
imposed  by  act  Augusl  28,  1894. 

3310  (amended).  Commencement  and  sus- 

pension of  work;  penalties. 
3311.  Reduction  of  capacity;  penalty  for 

tampering  with  locks,  etc. 
3312  and  3313.  Stamps. 

3314  (amended).  Accountability  for  stamp 

books;  export,  stamps. 

3315  (amended).  Etestamping  spirits,  fer- 

mented liquors,  tobacco,  cigars, 
etc.,  when  .-tamps  are  lust  or  de- 
stroyed. 


Sec. 

3316.  Officer  issuing  or  permitting  use  of 
stamps,  contrary  to  law;  penalty. 
[3316a.]  Imitation  stamps;  penalty. 

3317  (amended).  Rectifiers'  returns;  rec- 

tifiers intending  to  defraud;  pen- 
alty. 
[3317a]  (amended).  Rectifier's  notice  of 
intention  to  rectify. 

3318  (amended).  Rectifiers'  and  wholesale 

dealers'    books    and    transcripts; 
penalties. 
[3318a.]  Distiller  required  to  keep  book. 

3319.  Purchase     of     quantities     greater 

than  20  gallons  for  many  persona 
other  than,  etc.;  penalty. 

3320.  Gauging    and    stamping    rectified 

spirits. 

3322.  Filling  blanks  and  affixing  and  var- 
nishing stamps. 

3323  (amended).  Spirits  drawn  into  new 
packages  to  be  gauged  and 
branded;  forfeiture. 

3324.  Stamps  and  brands  to  be  effaced 

from  empty  casks;  penalties. 

3325.  Buying  or  selling  spirit  casks  hav- 

ing inspection  marks;  penalty. 

3326.  Changing  stamps,   shifting  spirits, 

etc.;  penalty. 

3327.  Removal  within  certain  hours  from 

distillery  or  rectifier's  premises; 
penalty. 

3328.  Tax  on  imitation  wines;  counter- 

feiting or  reusing  stamps;  penal- 
ties. 

3329  (amended).  Drawback  on  spirits. 

3330  (amended).  Exportation    of    spirits 

withdrawn  from  bonded  ware- 
houses; relanding;  penalties. 

[3330a.]  Transportation  bond  may  be 
taken;  change  of  package. 

[33306.]  Act  of  December  20, 1879.  Allow- 
ance for  loss  during  transporta- 
tion. 

3331.  Release  of  distillery  before  judg- 
ment, in  what  cases. 

3332  (amended).  Stills,  etc.,  to  be  de- 
stroyed in  certain  cases. 

3333.  Burden  of  proof . 

3334  (amended).  Spirits  sold  under  judi- 
cial process  subject  to  tax.  Pro- 
vision where  spirits  will  not  sell 
for  price  equal  to  tax. 

Sections  11,  12,  and  13,  act  March  1,  1879; 
penalties.  Imported  liquor 
stamps,  etc. 

Act  October  1, 1890,  as  amended  by  act  of 
June  7,  1906.  Fortification  of 
wines. 

Act  of  March  3,  1S97.  Bottling  of  distilled 
spirits  in  bond. 

Act  June  7,   1906.     Denatured  alcohol. 

Act  March  2,  1907.  Amendatory  of  the 
denatured  alcohol  act. 


DISTILLED    SPIRITS.  149 

Sec.  3247.  Every  person  who  produces  distilled  spirits,  ni.?^ti"er'   defl- 

ii  i  i  ir'Pi*      "ii       nit  ion  oi. 

or  who  brews  or  makes  mash,  wort,  or  wash,  lit  lor  distilla- 
tion or  for  the  production  of  spirits,  or  who,  by  any  process 
of  evaporization,  separates  alcoholic  spirit  from  any  fer- 
mented substance,  or  who,  making  or  keeping  mash,  wort, 
or  wash,  has  also  in  his  possession  or  use  a  still,  shall  be 
regarded  as  a  distiller. 

See  section  3282  as  to  vinegar  makers,  page  175. 

To  make  one  in  possession  of  a  still  a  distiller  because  he 
keeps  mash,  wort,  or  wash,  the  mash,  wort,  or  wash  must  be 
such  as  will  produce  spirits  on  distillation.  (United  States  v. 
House  and  Lot  No.  3  Abattoir  Place;  25  Int.  Rev.  Rec,  319.) 

Special  tax  on  distillers  repealed.     (Act  of  June  6,  1872.) 

A  corporation  may  carry  on  the  business  of  distilling.  Also, 
meaning  of  the  word  "person8'  in  this  chapter.  (15  Op.  Atty. 
Gen.,  230;  23  Int.  Rev.  Rec,  141.) 

Sec.  3248.  Distilled  spirits,  spirits,  alcohol,  and  alco-j^0^1^^- 
holic  spirit,  within  the  true  intent  and  meaning  of  this  act, 
is  that  substance  known  as  ethyl  alcohol,  hydrated  oxide 
of  ethyl,  or  spirit  of  wine,  which  is  commonly  produced  by 
the  fermentation  of  grain,  starch,  molasses,  or  sugar,  in- 
cluding all  dilutions  and  mixtures  of  this  substance;  and 
the  tax  shall  attach  to  this  substance  as  soon  as  it  is  in 
existence  as  such,  whether  it  be  subsequently  separated  as 
pure  or  impure  spirit,  or  be  immediately,  or  at  any  subse- 
quent time,  transferred  into  any  other  substance,  either  in 
the  process  of  original  production  or  by  any  subsequent 
process. 

Under  the  internal-revenue  laws  the  tax  on  spirits  attaches  as 
soon  as  they  come  into  existence,  and  must  be  paid  by  the  man- 
ufacturer, even  in  case  of  their  destruction,  unless  the  circum- 
stances onwhich  here  lies  for  exemption  come  within  theparticular 
description  in  some  one  of  the  remedial  statutes.  (Greenbrier 
Distillery  Co.  v.  Johnson,  88  Fed.  Rep.,  638.) 

Sec.  3249.  Proof  spirit  shall  be  held  to  be  that  alcoholic  ^andar^oi 
liquor  which  contains  one-half  its  volume  of  alcohol  of  aj^eveiFtion  of 
specific  gravity  of  seven  thousand  nine   hundred   andfrauds- 
thirty-nine  ten  thousandths  (.7939)  at  sixty  degrees  Fah- 
renheit.   And  for  the  prevention  and  detection  of  frauds  by 
distillers  of  spirits,  the  Commissioner  of  Internal  Revenue 
may  prescribe  for  use  such  hydrometers,  saccharometers, 
weighing  and  gauging  instruments,  or  other  means  for 
ascertaining  the  quantity,  gravity,  and  producing  capac- 
ity of  any  mash,  wort,  or  beer  used,  or  to  be  used,  in  the 
production  of  distilled  spirits,  and  the  strength  and  quan- 
tity of  spirits  subject  to  tax,  as  he  may  deem  necessary; 
and  he  may  prescribe  rules  and  regulations  to  secure  a  uni- 
form and  correct  system  of  inspection,  weighing,  marking, 
and  gauging  of  spirits. 

Meters.  (Tice  v.  United  States,  99  XT.  S.,  286;  Sausser  v. 
United  States,  9  Ct.  Cls.,  338;  11  ibid.,  538;  Finch  v.  United 
States,  12  Ct.  Cls.,  364;  102  U.  S.  (12  Otto),  269;  26  Int.  Rev. 
Rec,  410.) 

By  the  act  of  June  6,  1872  (17  Stat.,  239),  all  the  provisions  of 
the  act  of  July  20,  1868,  touching  meters  were  repealed. 

On  the  1st  of  May,  1892,  the  method  of  gauging  of  spirits  by 
rod,  theretofore  used,  was  changed  to  a  weighing  system,  by 


150  DISTILLED   SPIRITS. 

which  the  number  of  wine  gallons  contents  is  determined  by  the 
weight  of  the  package.  Weighing  beams  are  furnished  for  the 
use  of  distilleries  and  rectifying  houses,  and  their  use  made 
obligatory,  except  at  fruit  distilleries  of  a  production  of  less 
than  10,000  proof  gallons  during  the  season,  and  at  rectifying 
houses  rectifying  less  than  5,000  proof  gallons  of  spirits  annually. 
(Gaugers'  Weighing  Manual,  1906.) 

Weighing  spirits:  Commissioner's  annual  report  (1892).  (38 
Int.  Rev.  Rec,  13.) 

Circular  No.  218,  August  1,  1879,  authorizes  the  outage  of 
packages  of  less  than  63  gallons  capacity  to  be  1  gallon  where 
Corey's  apparatus  for  aging  whisky  and  other  spirits  in  distillery 
warehouses  is  used,  and  modifies  Circular  No.  180  accordingly. 
(25  Int.  Rev.  Rec,  245.) 

See  Gaugers'  Manual,  1906,  for  rule  applicable  to  all  apparatus 
for  aging  whisky,  which  has  been  approved  by  the  commis- 
sioner. 

The  Internal  Revenue  Gaugers'  Manual,  1906,  embraces  regu- 
lations and  instructions  and  tables  prescribed  by  the  Commissioner 
of  Internal  Revenue  by  virtue  of  section  3249,  Revised  Statutes. 

What  is  the  meaning  of  the  term  "Whisky8'  under  the  pure- 
food  act,  and  the  proper  regulations  for  branding  various  kinds 
of  whisky  under  the  internal-revenue  act.  (Decision  by  Presi- 
dent Taft,  Dec.  27,  1909.) 

inhales  aSdefinf-     ^ec.  325°-  I*1  an  sa^es  °f  spirits  a  gallon  shall  be  held  to 
tion  of.  '  be  a  gallon  of  proof  spirit,  according  to  the  standard  pre- 

scribed in  the  preceding  section,  set  forth  and  declared  for 
the  inspection  and  gauging  of  spirits  throughout  the 
United  States. 

See  definition  of  gallon,  as  relates  to  fermented  liquors,  in  sec- 
tion 21,  act  of  March  1,  1879.     (Sec.  3339a.) 

sPwtXs0ndistilled     Sec-  3251  l-as  amended  by  sec.  1,  act  of  Mar.  3,  1875  (18 
Repealed     by  Stat.,  839)].     [There  shall  be  levied  and  collected  on  all 

Aug.24|'i894et  of  distilled  spirits  produced  in  the  United  States  on  which  the 
tax  prescribed  by  law  has  not  been  paid,  a  tax  of  ninety 
cents  on  each  proof  gallon,  or  wine  gallon  when  below  proof, 
to  be  paid  by  the  distiller,  owner,  or  person  having  posses- 
sion thereof  before  removal  from  the  distillery  bonded 
warehouse:  Provided,  That  distilled  spirits  lawfully  de- 
posited in  a  distillery  bonded  warehouse  prior  to  the  first 
obsolete.  (jay  0f  August,  eighteen  hundred  and  seventy-two,  may  be 
withdrawn  on  payment  of  the  taxes  thereon  at  the  rate, 
within  the  time,  and  in  the  manner  provided  by  law  at 
the  time  of  such  deposit.] 

The  tax  on  such  spirits  shall  be  collected  on  the  whole 
number  of  gauge  or  wine  gallons  when  below  proof,  and 
shall  be  increased  in  proportion  for  any  greater  strength 
than  the  strength  of  proof  spirit,  as  defined  in  this  title; 
[and  any  fractional  part  of  a  gallon  amounting  to  one-half 
gallon  or  over  in  a  cask  or  package  shall  be  taxed  as  a  gal- 
Ion,  and  any  fractional  part  of  a  gallon  less  than  one-half 
gallon  in  any  cask  or  package  shall  be  exempt  from  tax.l 
Every  proprietor  or  possessor  of,  and  every  person  in  any 
manner  interested  in  the  use  of,  any  still,  distillery,  or  dis- 
tilling apparatus,  shall  be  jointly  and  severally  liable  for 
the  taxes  imposed  by  law  on  the  distilled  spirits  produced 
LIen-  therefrom,  and  the  tax  shall  be  a  first  lien  on  the  spirits 

distilled,  the  distillery  used  for  distilling  the  same,  the 


DISTILLED    SPIEITS.  151 

stills,  vessels,  fixtures,  and  tools  therein,  the  lot  or  tract  of 
land  whereon  the  said  distillery  is  situated,  and  on  any 
building  thereon  from  the  time  said  spirits  are  in  existence 
as  such  until  the  said  tax  is  paid. 

Part  in  brackets  repealed  by  act  of  August  28,  1894.     Frac 
tional  parts  of  a  gallon.     (See.  3251a.) 

The  stockholders  of  a  corporation  engaged  in  operating  a  dis- 
tillery are  "persona  interested  in  the  use  of  the  distillery," 
within  the  meaning  of  section  3251,  which  declares  that  every 
proprietor  and  possessor,  "  and  every  person  in  any  manner  inter- 
ested in  the  use  of8'  a  distillery,  shall  be  jointly  and  severally 
liable  for  the  taxes  imposed  by  law  on  the  distilled  spirits  pro- 
duced therefrom. 

(United  States  v.  Wolters  et  al.  (1891),  southern  district  of 
California.  46  Fed.  Rep.,  509.  United  States  v.  Howard,  11  Int. 
Rev.  Rec,  119.) 

[3251a.]  Sec.  48  [act  of  Aug.  28,  1894  (28  Stat.,  509)].J**™dis™^ 
That  on  and  after  the  passage  of  this  act  there  shall  be 
levied  and  collected  on  all  distilled  spirits  in  bond  at  that 
time,  or  that  have  been  or  that  may  be  then  or  there- 
after produced  in  the  United  States,  on  which  the  tax 
is  not  paid  before  that  day,  a  tax  of  one  dollar  and  ten 
cents  on  each  proof  gallon,  or  wine  gallon  when  below 
proof,  and  a  proportionate  tax  at  a  like  rate  on  all 
fractional  parts  of  such  proof  or  wine  gallon:  Provided, 
That  in  computing  the  tax  on  any  package  of  spirits  all 
fractional  parts  of  a  gallon,  less  than  one  tenth,  shall  began0rnsCtlonal 
excluded. 

The  Commissioner  of  Internal  Revenue,  with  the  ap-  stamPs- 
proval  of  the  Secretary  of  the  Treasury,  shall  prescribe  and 
furnish  suitable  stamps  denoting  the  payment  of  the  inter- 
nal-revenue tax  imposed  by  this  section;  and  until  such 
stamps  are  prepared  and  furnished,  the  stamps  now  used 
to  denote  the  payment  of  the  internal-revenue  tax  on  dis- 
tilled spirits  shall  be  affixed  to  all  packages'containing  dis- 
tilled spirits  on  which  the  tax  imposed  by  this  section  is 
paid;  and  the  Commissioner  of  Internal  Revenue  shall,  by 
assessment  or  otherwise,  cause  to  be  collected  the  tax  on  the°talction  °r 
any  fractional  gallon  contained  in  each  of  such  packages 
as  ascertained  by  the  original  gauge,  or  regauge  when 
made,  before  or  at  the  time  of  removal  of  such  packages 
from  warehouse  or  other  place  of  storage ;  and  all  provi-  bl£aws  appllca" 
sions  of  existing  laws  relating  to  stamps  denoting  the  pay- 
ment of  internal-revenue  tax  on  distilled  spirits,  so  far  as 
applicable,  are  hereby  extended  to  the  stamps  provided 
for  in  this  section. 

That  the  tax  herein  imposed  shall  be  paid  by  the  dis- 
tiller of  the  spirits,  on  or  before  their  removal  from  the  dis- 
tillery or  place  of  storage,  except  in  case  the  removal  there- 
from without  payment  of  tax  is  authorized  by  lav/;  and 
(upon  spirits  lawfully  deposited  in  any  distillery  ware- 
house, or  other  bonded  warehouse,  established  under  in- 
ternal-revenue laws)  within  eight  years  from  the  date  of  byTatxhe°  dfstme'r 
the  original  entry  for  deposit  in  any  distillery  warehouse,  within  eight 
or  from  the  date  of  original  gauge  of  fruit  brandy  depos-  years' 


152 


DISTILLED    SPIRITS. 


ited  in  special-bonded  warehouse,  except  in  case  of  with- 
drawal therefrom  without  payment  of  tax  as  authorized 
by  law. 

Apple  brandy  included  in  term    distilled  spirits  (U.  S.  v. 
Ridenour  (1902),  119  Fed.  Rep.,  411). 

AN  ACT  To  impose  a  tax  upon  alcoholic  compounds  coming  from 
Porto  Rico,  and  for  other  purposes.  Approved  February  15,  1909. 
(35  Stat.,  594.) 

Bay  rum  from  [3251&.]  That  upon  hay  rum,  or  any  article  containing 
alcohol,  hereafter  Drought  from  Porto  Rico  into  the  United 
States  for  consumption  or  sale  there  shall  he  paid  a  tax  on 
the  spirits  contained  therein  of  one  dollar  and  ten  cents  per 
proof  gallon,  to  he  collected  at  the  port  of  entry  hy  the  col- 
lector of  internal  revenue  of  the  district  in  which  the  port  is 
located.  The  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  is  hereby  author- 
ized to  make  such  rules  and  regulations  as  may  he  necessary 
to  carry  this  Act  into  effect. 

Regulations  February  15,  1909.     (Cir.  734;  T.  D.  1462.) 
Rates  of  tax  on  spirits  under  the  different  laws  which  have  been  in  force. 


Spirits  distilled  from  whatever  materials. 

Do 

Spirits  distilled  from  whatever  materials, 

except  grapes 

Spirits  distilled  from  whatever  materials, 
except  grapes,  to  Apr.  1  1865,  and  from 
whatever  materials,  except  apples, 
grapes,  and  peaches,  after  Apr.  1, 1865.. 

Spirits  distilled  from  grapes 

Do 

Spirits  distilled  from  apples  or  pea 
Spirits  distilled  from  apples,  grapes,  or 

peaches 

Spirits  distilled  from  apples  or  peaches.. . 

Spirits  distilled  from  grapes 

Spirits  distilled  from  whatever  materials. 

Do 

Do 

Do 


Tax 
per 

gal- 
lon. 


.00 
1.30 


2.00 
.  25 
.50 

1.50 

2.00 
2.00 
1.00 
.50 
.70 
*.90 
1.10 


Acts  imposing 

tax. 

Julv 

1,1862 

Mar. 

7, 1864 

June 

30, 1864 

Dec. 

22,1864 

June 

30, 1864 

Mar. 

3, 1865 

do 

Julv 

13, 1866 

Mar. 

2,1867 

do 

July 

20,1868 

June 

6, 1872 

Mar. 

3, 1875 

Aug. 

2S, 1894 

Acts  repealing 
tax. 


Mar.     7, 1864 
June  30,1864 

Dec.   22,1864 


July  20,1868 
Mar.  3, 1865 
July  13,1866 
do 

Mar.  2, 1867 
July   20,1868 

do 

June  6, 1872 
Mar.  3, 1875 
Aug.  28,1894 


Length 
of  time 

rates 
were  in 

force. 


Months. 

18 

4 


43 


17 
17 

6 

17 
17 
48 
31 
234 


The  act  of  July  1,  1862,  went  into  operation  September  1,  1862. 

The  act  of  June  30,  1804,  provided  that  a  tax  of  $1.50  per  gallon 
should  be  levied  and  collected  on  all  distilled  spirits,  except 
brandy  distilled  from  grapes,  from  July  1,  1864,  to  February  1, 
1865;  on  and  after  February  1,  1865,  the  tax  should  be  $2  per 
gallon. 

The  act  of  December  22,  1864,  provided  that  the  tax  of  $2  per 
gallon  should  take  effect  January  1,  1865,  instead  of  February  1, 
1865. 

So  far  as  the  other  acts  referred  to  relate  to  the  tax  on  spirits, 
they  wont  into  operation  immediately  on  their  passage,  except 
the  following:  Act  of  March  3,  1865,'took  effect  April  1,  1865; 
act  of  Julv  13,  1866,  took  effecl  September  1,  1866;  act  of  June 
6,  1872,  took  effect  August  1,  1872. 

The  act  of  July  20,  1868,  made  the  tax  50  cents  per  gallon,  to 
be  paid  by  stamps;  but  there  was  imposed  on  the  distiller  by 
that  act  an  additional  tax  on  his  product  of  $4  per  barrel  of  40 


DISTILLED   SPIRITS.  153 

proof  gallons,  which  made  the  tax  really  10  cents  per  gallon 
additional,  or  60  cents  per  gallon.  There  was  also  a  tax  on  the 
grain-mashing  capacity  of  the  distillery,  and  a  further  require- 
ment of  reimbursement  by  the  distiller  of  the  sums  paid  by  the 
Government  for  gaugers'  fees  and  storekeepers'  salaries,  alto- 
gether amounting  to  about  7  cents  per  gallon  of  the  aggregate 
product  of  spirits,  thus  making  the  whole  tax  charged  upon  the 
distiller  about  67  cents  per  gallon. 

By  the  act  of  June  6,  1872,  taking  effect  August  1,  1872,  the 
barrel  and  grain  capacity  taxes  and  the  reimbursement  pro- 
vision were  repealed,  and  the  tax  was  made  70  cents  per  gallon, 
being  only  an  actual  addition  of  about  3  cents  per  gallon.  By 
the  act  of  March  3,  1875,  increase  was  made  to  90  cents  per  gal- 
lon. August  28,  1894,  the  tax  was  again  increased  to  $1.10  per 
gallon. 

Stamps  first  required  in  payment  of  tax  on  spirits  by  the  act 
of  July  20,  1S68  (15  Stat.,  125),  and  went  into  use  November  2, 
18G8.     (Circular  of  Sept.  17,  1868.) 

The  act  of  Congress  approved  July  20,  1868,  imposing  a  tax 
on  distilled  spirits,  is  not  unconstitutional.  The  tax  imposed 
upon  the  distiller  is  in  the  nature  of  an  excise,  and  the  only 
limitation  upon  the  power  of  Congress  in  the  imposition  of  taxes 
of  this  character  is  that  they  shall  be  "uniform  throughout  the 
"United  States."  (United  States  v.  Singer,  15  Wall.,  Ill;  Same 
v.  Van  Buskirk,  15  Wall.,  123.) 

Exemptions  from  tax. — Alcohol  withdrawn  for  scientific  pur- 
poses.    (Sec.  3297,  page  197.) 

Spirits  used  in  the  fortification  of  sweet  wine.     (Page  228.) 

Spirits  used  in  the  manufacture  of  sugar  from  sorghum.  (Page 
154.) 

Spirits  purchased  for  the  United  States  for  Government  use. 
(Sec.  3464,  p.  367.) 

Spirits  denatured  in  accordance  with  the  denatured  alcohol 
act  of  June  7,  1906,  amended.     (Page  239.) 

Theory  of  Government  supervision  over  distilleries.  (United 
States  v.  Parker,  Mason  &  Co.  et  al.,  21  Int.  Rev.  Rec,  245.) 

Persons  having  interest  in  distillery  liable.  (United  States  v. 
Howard,  11  Int.  Rev.  Rec,  119.) 

Lien  can  not  be  divested  by  transfer  of  title.  (Milan  Distill- 
ing Co.  v.  Tillson,  collector,  26  Int.  Rev.  Rec,  5.) 

The  soakage  of  spirits  into  distiller's  packages,  not  being  in- 
cluded in  the  basis  of  computation,  is  not  a  part  of  the  quantity 
upon  which  the  tax  is  levied,  and,  consequently,  when  extracted 
from  the  empty  barrels,  it  is  spirits  on  which  the  lawful  tax  has 
not  been  paid,  and  is  subject  to  taxation.  (Corning  &  Co.  v. 
Hunter,  collector,  U.  S.  circuit  court  of  appeals  (1898);  86  Fed. 
Rep.,  913;  T.  D.  19191.) 

Recovery  of  spirits  from  empty  packages  in  bottling  ware- 
houses.    (Cir.  No.  662;  T.  D.  818.) 

Reclaiming  spirits  from  empty  spirit  packages.  (T.  D.  1608; 
T.  D.  1627.) 

A  corporation  may  carry  on  the  business  of  distilling  in  its  cor- 
porate capacity.  (15  Op.  Atty.  Gen.,  230;  23  Int.  Rev.  Rec, 
141.) 

Stockholders  in  a  distilling  company  individually  liable  for 
taxes  due  from  the  corporation.  (15  Op.  Atty.  Gen.,  559;  23  Int. 
Rev.  Rec,  141.) 

Municipal  corporations  engaged  in  distilling  liable  to  tax. 
(Salt  Lake  City  v.  Hollister,  collector,  118  U.  S.,  256;  32  Int.  Rev. 
Rec,  158.) 

Payment  of  tax  on  forfeited  spirits  by  the  marshal  out  of  pro- 
ceeds of  sale  (sec.  3458)  discharges  liability  of  sureties  on  dis- 
tillers' warehousing  bond  for  tax.  (United  States  v.  Ulrici,  111 
U.  S.,  38;  30  Int.  Rev.  Rec,  111.) 

Primarily  the  distiller  is  liable  for  the  taxes  due  on  the  spirits 
distilled  and,  in  case  of  default,  his  sureties  are  also  jointly  liable 
for  the  same.     The  tax  must  be  paid  in  the  name  of  the  distiller, 


154  DISTILLED   SPIRITS. 

and  the  stamp,  which  is  iu  the  nature  of  a  receipt,  can  only  be 
issued  to  him.  (Harkins  v.  Williard,  146  Fed.  Rep.,  703;  T.  D. 
1030.) 

The  laws  imposing  taxes  on  distilled  spirits  are  coextensive 
with  jurisdiction  of  United  States.     (Sec.  3448,  p.  356.) 

Domestic  whisky  returned  from  abroad.  (26  Int.  Rev.  Rec, 
50;  27  ibid.,  333.) 

Domestic  spirits  exported  from  the  United  States  subject  to 
rate  of  duty  equal  to  internal-revenue  tax  upon  reimportation 
of  same  into  this  country.     (See  sec.  2500.) 

Where  there  is  presumptive  evidence  that  it  was  the  intention 
of  the  parties  to  return  the  spirits  to  United  States,  entry  under 
section  2500  not  allowed.     (35  Int.  Rev.  Rec,  358.) 

[For  opinion  of  Attorney  General  as  to  what  constitutes  an 
exportation  within  contemplation  of  law  see  references  under 
sec.  3330.] 

Domestic  spirits  returned  to  the  United  States  and  not  admitted 
under  section  2500  as  reimported  spirits  subject  to  internal-revenue 
tax  on  full  quantity  contained  in  packages  at  time  of  withdrawal 
from  distillery  warehouse. 

The  location  of  a  distillery  in  Indian  Territory  on  land  where 
title  is  extinct  is  in  contravention  of  law.  (22  Op.  Atty.  Gen., 
232;  T.  D.,  20162.) 

Bay  rum  from  Porto  Rico.  (T.  D.  404;  Newhall  v.  Jordan 
(1906)  149  Fed.  Rep.,  586;  Anderson  v.  Newhall  (1908)  C.  C.  A. 
161  Fed.  Rep.,  906;  Roche  v.  Jordan,  175 Fed.  Rep.,  234,  certified 
to  U.  S.  Supreme  Court. 

[Sec.  3251c]  [Act  of  Mar.  3,  1891  {26  Stat,  1050).   An 
act  making  appropriations  for  the  Department  of  Agricul- 
ture.]    *     *     *     That  any  manufacturer  of  sugar  from 
sorghum  may  remove  from  distillery  warehouses  to  fac- 
withdrawai  t°ries  used  solely  for  the  manufacture  of  such  sugar  from 
free   of  tax   of  sorghum  distilled  spirits  in  bond  free  of  tax,  to  be  used 
tEe" manufacture  solely  in  such  manufacture  of  sugar  from  sorghum;  that 
so  humr    from  all  distilled  spirits  removed  as  herein  authorized  shall  be 
of  an  alcoholic  strength  of  not  less  than  one  hundred  and 
sixty  per  centum  proof,  and  may  be  removed,  stored,  and 
used  in  the  manufacture  of  sugar  from  sorghum,   and 
when  so  used  may  be  recovered  by  redistillation  in  the 
sugar  factory  of  such  sugar  manufacturer  under  such 
bonds,  rules,  and  regulations  for  the  protection  of  the 
revenue  and  the  accomplishment  of  the  purposes  herein 
expressed  as  the  Commissioner  of  Internal  Revenue  with 
the  approval  of  the  Secretary  of  the  Treasury  may  pre- 
scribe. 
Penalty  Any  person  who  removes  or  uses  distilled  spirits  in  vio- 

lation of  this  provision,  as  [or]  the  regulations  issued  pur- 
suant thereof,  shall,  on  conviction  thereof,  be  fined  not 
less  than  one  thousand  dollars  nor  more  than  five  thou- 
sand dollars  for  each  offense,  and  the  spirits  and  the 
premises  on  which  such  spirits  are  used  shall  be  forfeited 
to  the  United  States.  *  *  * 
Adding  sub-  Sec.  3252.  Every  person  who  adds  or  causes  to  be 
stances  to  create  added  anv  ingredient  or  substance  to  any  distilled  spirits 

fictitious      proof;,      c  ,-,   *    ,      °.  •  ■>   ,  ■,  «.        ,i  ■  n  r  .. 

penalty.  belore  the  tax  is  paid  thereon,  lor  the  purpose  or  creating 

a  fictitious  proof,  shall  be  fined  not  less  than  one  hundred 
dollars  nor  more  than  one  thousand  dollars  for  each  cask 
or  package  so  adulterated,  and  imprisoned  not  less  than 
three  months  nor  more  than  two  years;  and  every  such 


DISTILLED    SPIRITS.  155 

cask  or  package,  with  its  contents,  shall  be  forfeited  to 
the  United  States. 

Sec.  3253.  The  tax  upon  any  distilled  spirits  removed    Tax  on  spirits 
from  the  place  where  they  were  distilled  and  not  deposited  depo^t^rTware- 
in  bonded  warehouse  as  required  by  law,  shall,  at  any^°n^se;  assess- 
time,  when  knowledge  of  such  fact  is  obtained  by  the  Com- 
missioner of  Internal  Revenue,  be  assessed  by  him  upon 
the  distiller  of  the  same,  and  returned  to  the  collector,  who 
shall  immediately  demand  payment  of  such  tax,  and,  upon 
the  neglect  or  refusal  of  payment  by  the  distiller,  shall  pro- 
ceed to  collect  the  same  by  distraint.     But  this  provision 
shall  not  exclude  any  other  remedy  or  proceeding  provided 
by  law. 

This  section  also  applies  to  fruit  distillers  who  sell  spirits 
without  payment  of  tax . 

(See  also  sec.  8,  act  of  March  3,  1877,  providing  similar  remedy 
in  certain  cases  as  to  brandy  made  from  apples,  peaches,  or 
grapes,  p.  194.) 

Sec.  3254.  All  products  of  distillation,  by  whatever    Products  of  dis- 

i  t   •  \  •        t    j  mi     i         ■    'j  i       i     i  filiation  contain- 

name  known,  which  contain  distilled  spirits  or  alcohol,  on  ing  spirits. 
which  the  tax  imposed  by  law  has  not  been  paid,  shall  be 
considered  and  taxed  as  distilled  spirits. 

Sec.  3255  [as  amended  by  act  of  June  3,  1896  (29  Stat.,  Brandy  made 
195),  and  act  of  Feb.  4,  1901  (31  Stat.,  759),  and  act  of  £Sesfapg?a£S 
Mar.  2,  1911  (36  Stat.,  1014) .]  The  Commissioner  of  Inter- etc- 
nal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  exempt  distillers  of  brandy  made  exclu- 
sively from  apples,  peaches,  grapes,  pears,  pineapples, 
oranges,  apricots,  berries,  plums,  pawpaws,  persimmons, 
prunes,  figs,  or  cherries  from  any  provision  of  this  title 
relating  to  the  manufacture  of  spirits,  except  as  to  the 
tax  thereon,  when  in  his  judgment  it  may  seem  expedient 
to  do  so ;  Provided,  That  where,  in  the  manufacture  of  wine, 
artifcial  sweetening  has  been  used  the  wine  or  the  fruit 
pomace  residuum  may  be  used  in  the  distillation  of  brandy, 
and  such  use  shall  not  prevent  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
from  exempting  such  distiller  from  any  provision  of  this 
title  relating  to  the  manufacture  of  spirits,  except  as  to  the 
tax  thereon,  when  in  his  judgment  it  may  seem  expedient  to 
do  so." 

Cir.  No.  592.     Feb.  23,  1901.     (T.  D.  288.) 

Act  of  March  3,  1877,  relating  to  the  production  of  grape 
brandy  (special  bonded  warehouses),  p.  192. 

Act  of  October  18,  1888,  relating  to  production  of  brandy  made 
from  apples  or  peaches,  p.  195. 

Distillers  of  brandy  made  exclusively  from  apples,  peaches, 
grapes,  pears,  pineapples,  oranges,  apricots,  berries,  prunes, 
figs,  or  cherries  are  not  required  to  have  a  sign,  furnish  a  plan  of 
the  distillery,  or  provide  a  warehouse.  They  are  exempted 
from  certain  requirements  as  to  the  fermenting  period  and  fer- 
menting tubs  and  other  general  provisions  of  the  law  as  set  forth 
in  the  regulations  on  the  subject.  (See  Regulations  No.  7, 
Revised,  pp.  204-205.) 

Internal-revenue  tax  on  all  fruit  brandy  is  due  on  the  10th 
of  the  month  following  the  month  of  production. 


156  DISTILLED   SPIRITS. 

Assessing  tax  on  fruit  brandy.  (Cir.  No.  657,  T.  D.  782; 
T    D    835  ) 

Collection  of  tax  on  fruit  brandy.  (Cir.  No.  G70.  June  3, 
1905.     T.  D.  900.) 

Distilleries hav-     rsEC.  3255<i.l  [Sec.  5  of  the  act  of  Mar.  1,  1879  (20  Stat., 

ine  a  daily  spirit    _    L77  j    l  j  m    j 

producing  capac- 827).]  *  *  *  The  Commissioner  of  Internal  Kevenue, 
loL^roofspifftswith  the  approval  of  the  Secretary  of  the  Treasury,  may 
tionsess;  exemp  exempt  distillers  whose  distilleries  have  a  daily  spirit- 
producing  capacity  of  thirty  gallons  of  proof  spirits,  or 
less,  from  such  of  the  provisions  of  existing  law  in  regard 
to  grain  distilleries  which  require  the  process  of  distilla- 
tion to  be  carried  on  through  continuous  closed  vessels 
and  pipes,  or  which  require  the  cisterns  to  be  connected 
with  the  outlet  of  the  worm  or  condenser  by  suitable 
pipes  or  other  apparatus  or  which  require  certain  clear 
spaces  about  the  cisterns  and  other  vessels  of  the  distil- 
lery,  or  which  require  the  distillers  to  have  or  furnish  a 
plan  of  the  distillery,  as  he  may  deem  proper. 

Under  the  authority  given  by  this  section  distillers  whose 
distilleries  have  a  daily  spirit-producing  capacity  of  30  gallons 
of  proof  spirits  or  less,  as  estimated  and  determined  by  a  survey 
made  according  to  law,  are  exempted— 

(1)  From  so  much  of  the  provisions  of  section  3263  as  require 
a  plan  of  the  distillery  to  be  had  or  furnished  by  the  distiller; 

(2)  From  so  much  of  the  provisions  of  sections  3267  and  3269 
as  require  that  the  open  or  clear  spaces  above,  below,  or  around 
the  receiving  cisterns,  wood  still,  doubler,  and  worm  tanks 
shall  be  of  any  greater  extent  or  dimensions  than  is  necessary 
to  afford  a  clear,  distinct,  and  uninterrupted  view  around, 
above,  and  beneath  each  of  said  vessels  or  utensils. 

ena?td-ing  tax;  Sec.  3256.  Whenever  any  person  evades,  or  attempts  to 
evade,  the  payment  of  the  tax  on  any  distilled  spirits,  in 
any  manner  whatever,  he  shall  forfeit  and  pay  double  the 
amount  of  the  tax  so  evaded  or  attempted  to  be  evaded. 

(See  sec.  3296,  p.  197.) 

The  penalty  of  double  the  amount  of  the  tax  imposed  by 
section  3256  is  not  assessable,  and  should  not  be  imposed  and 
collected  by  a  collector,  but  should  be  recovered  by  indict- 
ment or  other  form  of  action.     (T.  D.  858.) 

frau'ifn ' J  o6/  at-  ^ec.  3257.  Whenever  any  person  engaged  in  carryingon 
tempting  to  de- the  business  of  a  distiller  defrauds  or  attempts  to  defraud 
stTtes  oV  tax  on  the  United  States  of  the  tax  on  the  spirits  distilled  by 
spirits.  him,  or  of  any  part  thereof,  he  shall  forfeit  the  distillery 

and  distilling  apparatus  used  by  him,  and  all  distilled 
Forfeiture.       spirits  and  all  raw  materials  for  the  production  of  distilled 

spirits  found  in  the  distillery  and  on  the  distillery  prem- 
Penaity.         ises,  and  shall  be  fined  not  less  than  five  hundred  dollars 

nor  more  than  five  thousand  dollars,  and  be  imprisoned 

not  less  than  six  months  nor  more  than  three  years. 

See  section  3281  and  citations  thereunder.  See  section  3230, 
as  to  nolle  prosequi  of  prosecutions  under  section  3257. 

It  is  sufficient  in  the  indictment  to  allege  the  offense  in  the 
language  of  the  statute  where  this  so  defined  the  act  or  acts 
constituting  the  offense  as  to  give  to  the  defendant  information 
of  the  nature  and  cause  of  the  accusation.  (United  States  v. 
Staton,  25  Int.  Rev.  Rec,  10.) 

Information  under  sections  3257,  3281,  3305,  3153,  and  3456, 
Revised  Statutes.     No  proof  to  overcome   the  denials  in  the 


DISTILLED    SPIRITS. 


157 


answer.  United  States  v.  One  Distillery  et  al.  (Fruitvale  Wine 
&  Fruit  Co.,  174  U.  S.,  149.) 

It  was  not  necessary  to  aver  in  the  information  that  the  dis- 
tilled spirits  found  on  the  claimant's  distillery  premises  and 
seized  were  distilled  by  him  or  were  the  product  of  his  distillery, 
or  that  the  distillery  apparatus  was  wrongfully  used. 

The  only  necessary  elements  are  that  the  person  shall  be  en- 
gaged in  carrying  on  the  business  of  a  distiller,  and  that  he  shall 
defraud  or  attempt  to  defraud  the  United  States  of  the  tax  on 
the  spirits  distilled  by  him.  The  forfeiture  is  to  be  enforced  by 
a  civil  suit  in  rem  and  the  fine  and  imprisonment  in  a  criminal 
proceeding.  (Coffey  v.  United  States,  32  Int.  Rev.  Rec,  39; 
116  U.  S.,  427.) 

One  who  has  been  fined  and  imprisoned  under  section  3257,  for 
illicit  distilling,  is  estopped  to  claim  as  his  own  the  distillery 
and  spirits  forfeited  thereby;  and  such  a  conviction  is  not  a 
bar  to  the  proceeding  in  rem  required  by  section  3453  to  declare 
and  perfect  the  forfeiture.  (United  States  v.  Three  Copper 
Stills,  etc.  (1890),  47  Fed.  Rep.,  495.)  _      » 

The  proceeds  of  forfeited  spirits  can  not  be  applied  to  relieve 
the  distiller  from  payment  of  tax.  (Harkins  v.  Williard,  circuit 
court  of  appeals,  1906;  146  Fed.  Rep.,  703;  T.  D.,  1030.) 

The  provisions  of  this  section  apply  to  fruit  distillers.  (United 
States  v.  Ridenour,  119  Fed.  Rep.,  411.) 

Sec.  3258.  Every  person  having  in  his  possession  or^jjgjfjjl*'* 
custody,  or  under  his  control,  any  still  or  distilling  ap- 
paratus set  up,  shall  register  the  same  with  the  collector 
of  the  district  in  which  it  is,  by  subscribing  and  filing  with 
him  duplicate  statements,  in  writing,  setting  forth  the 
particular  place  where  such  still  or  distilling  apparatus  is 
set  up,  the  kind  of  still  and  its  cubic  contents,  the  owner 
thereof,  his  place  of  residence,  and  the  purpose  for  which 
said  still  or  distilling  apparatus  has  been  or  is  intended  to 
be  used;  one  of  which  statements  shall  be  retained  and 
preserved  by  the  collector,  and  the  other  transmitted  by 
him  to  the  Commissioner  of  Internal  Revenue.  Stills  and 
distilling  apparatus  shall  be  registered  immediately  upon 
their  being  set  up. 

Every  still  or  distilling  apparatus  not  so  registered, 
together  with  all  personal  property  in  the  possession  or 
custody,  or  under  the  control  of  such  person,  and  found  in 
the  building,  or  in  any  yard  or  inclosure  connected  with 
the  building  in  which  the  same  may  be  set  up,  shall  be 
forfeited. 

And  every  person  having  in  his  possession  or  custody,  or 
under  his  control,  any  still  or  distilling  apparatus  set  up 
which  is  not  so  registered,  shall  pay  a  penalty  of  five  hun- 
dred dollars,  and  shall  be  fined  not  less  than  one  hundred 
dollars,  nor  more  than  one  thousand  dollars,  and  impris- 
oned for  not  less  than  one  month,  nor  more  than  two 
years. 

The  requirements  of  this  section  apply  to  all  stills  "set  up," 
of  whatever  size,  and  for  whatever  purpose  intended.  (Regula- 
tions No.  7,  Revised,  p.  6.) 

Stills  used  for  distillation  of  brandy  from  fruit  are  required 
to  be  stamped  with  a  number,  the  letters  and  figures  to  be  not 
less  than  three-eighths  of  an  inch  long.  (Regulations  No.  7, 
Revised,  p.  207.) 

Registry  of  stills.  (T.  D.  193;  T.  D.  337;  T.  D.  918;  T.  D.  1021; 
T.  D.  1344.) 


of 


Forfeiture. 


Penalty. 


158  DISTILLED   SPIRITS. 

tio^°toecarrDteonn  Sec.  3259«  Every  person  engaged  in,  or  intending  to  be 
business  of  dis-  engaged  in,  the  business  of  a  distiller  or  rectifier,  shall  give 
tiiier  or  rectifier.  notjce  m  writing,  subscribed  by  him,  to  the  collector  of  the 
district  wherein  such  business  is  to  be  carried  on,  stating 
his  name  and  residence,  and,  if  a  company  or  firm,  the 
name  and  residence  of  each  member  thereof,  the  name  and 
residence  of  every  person  interested  or  to  be  interested  in 
the  business,  the  precise  place  where  said  business  is  to  be 
carried  on,  and  wliether  of  distilling  or  rectifying ;  and  if 
such  business  is  carried  on  in  a  city,  the  residence  and 
place  of  business  shall  be  indicated  by  the  name  of  the 
street  and  number  of  the  building.  In  case  of  a  distiller, 
the  notice  shall  also  state  the  kind  of  stills  and  the  cubic 
contents  thereof,  the  number  and  kind  of  boilers,  the  num- 
ber of  mash-tubs  and  fermenting-tubs,  the  cubic  contents 
of  each  tub,  the  number  of  receiving-cisterns,  the  cubic 
contents  of  each  cistern,  the  number  of  hours  in  which  the 
distillery  will  ferment  each  tub  of  mash  or  beer,  the  esti- 
mated quantity  of  distilled  spirits  which  the  apparatus  is 
capable  of  distilling  every  twenty-four  hours,  a  particular 
description  of  the  lot  or  tract  of  land  on  which  the  distil- 
lery is  situated,  and  of  the  buildings  thereon,  including 
their  size, material,  and  construction;  and  that  said  distil- 
lery premises  are  not  within  six  hundred  feet,  in  a  direct 
line,  of  any  premises  authorized  to  be  used  for  rectifying 
or  refining  distilled  spirits  by  any  process. 

In  case  of  a  rectifier,  the  notice  shall  state  the  precise 
place  where  such  business  is  to  be  carried  on,  the  name  and 
residence  of  every  person  interested  or  to  be  interested  in 
the  business,  the  process  by  which  the  applicant  intends  to 
rectify,  purify,  or  refine  distilled  spirits,  the  kind  and  cubic 
contents  of  any  still  used  or  to  be  used  for  such  purpose, 
the  estimated  quantit}7-  of  spirits,  which  can  be  rectified, 
purified,  or  refined  every  twenty-four  hours  in  such  estab- 
lishment, and  that  said  rectifying  establishment  is  not 
within  six  hundred  feet,  in  a  direct  fine,  of  the  premises  of 
any  distillery  registered  for  the  distillation  of  spirits. 

In  case  of  any  change  in  the  location,  form,  capacity, 
ownership,  agencv,  superintendency,  or  in  the  persons 
interested  in  the  "business  of  such  distillery  or  rectifying 
establishment,  or  in  the  time  of  fermenting  the  mash  or 
beer,  notice  thereof,  in  writing,  shall  be  given  to  the  said 
collector  or  proper  deputy  collector  of  the  district  within 
twenty-four  nours  after  such  change;  and  any  deputy  col- 
lector receiving  such  notice  shall  immediately  transmit  the 
same  to  the  collector  of  the  district.  Eveiy  notice  re- 
quired bv  this  section  shall  be  in  such  form,  and  shall  con- 
tain such  additional  particulars,  as  the  Commissioner  of 
Internal  Revenue  may,  from  time  to  time,  prescribe. 
Penalty.  Every  person  who  fails  or  refuses  to  give  such  notice 

shall  pay  a  penalty  of  one  thousand  dollars,  and  shall  be 
fined  not  less  than  one  hundred  dollars  nor  more  than  two 
thousand  dollars;  and  every  person  who  gives  a  false  or 
fraudulent  notice  shall,  in  addition  to  such  penalty  or  fine, 


Distiller  to  give 


DISTILLED    SPIRITS.  159 

be  imprisoned  not  less  than  six  months  nor  more  than 
two  years. 

Section  7,  act  of  March  1,  1879,  requirement  as  to  rectifier's 
bond,  repealed  by  section  9,  act  of  May  28,  1880  (21  Stat.,  145). 

Successions  and  changes  of  name  or  style  of  distillers.  (Int. 
Rev.  Circular  No.  524,  T.  D.  20835,  1889;  Regulations  No.  7, 
Rev.,  p.  11). 

Sec.  3260  [as  amended  by  sec.  1,  act  of  May  28,  1880  (21 
Stat.  lJi-5).}  Every  person  intending  to  commence  or  to 
continue  the  business  of  a  distiller  shall,  on  filing  with  the 
collector  his  notice  of  such  intention,  and  before  proceed-  bond.1' 
ing  with  such  business,  and  on  the  first  day  of  May  of  each 
succeeding  year,  execute  a  bond  in  the  form  prescribed  by 
the  Commissioner  of  Internal  Revenue,  conditioned  that 
he  shall  faithfully  comply  with  all  the  provisions  of  law 
relating  to  the  duties  and  business  of  distillers,  and  shall 
pay  all  penalties  incurred  or  fines  imposed  on  him  for  a 
violation  of  any  of  the  said  provisions;  and  that  he  shall 
not  suffer  the  lot  or  tract  of  land  on  winch  the  distillery 
stands,  or  any  part  thereof,  or  any  of  the  distilling  ap- 
paratus, to  be  mcumbered  by  mortgage,  judgment,  or 
other  lien,  during  the  time  in  which  he  shall  carry  on  said 
business.  Said  bond  shall  be  with  at  least  two  sureties, 
approved  by  the  collector  of  the  district,  and  for  a  penal 
sum  not  less  than  *  the  amount  of  tax  on  the  spirits 
that  can  be  distilled  in  lus  distillery  during  a  period  of  fif- 
teen days.  But  in  no  case  shall  the  bond  exceed  the  sum  of 
one  hundred  thousand  dollars. 

The  collector  may  refuse  to  approve  said  bond  when,  in 
his  judgment,  the  situation  of  the  distillery  is  such  as 
would  enable  the  distiller  to  defraud  the  United  States; 
and  in  case  of  such  refusal  the  distiller  may  appeal  to  the 
Commissioner  of  Internal  Revenue,  whose  decision  in  the 
matter  shall  be  final.  A  new  bond  shall  be  required  in  New  bond. 
case  of  the  death,  insolvency,  or  removal  of  either  of  the 
sureties,  and  may  be  required  in  any  other  contingency  at 
the  discretion  of  the  collector  or  Commissioner  of  Internal 
Revenue. 

Every  person  who  fails  or  refuses  to  give  the  bond  here- 
inbefore required,  or  to  renew  the  same,  or  who  gives  any 
false,  forged,  or  fraudulent  bond,  shall  forfeit  tne  distil- 
lery, distming-apparatus,  and  all  real  estate  and  premises 
connected  therewith,  and  shall  be  fined  not  less  than  five  Penalty, 
hundred  dollars  nor  more  than  five  thousand  dollars,  and 
imprisoned  not  less  than  six  months  nor  more  than  two 
years. 

Assessments  against  distillers. — Officers  should  segregate  the 
amounts  by  periods  covered  by  the  different  bonds,  giving  the 
amount  for  which  each  bond  is  liable.     (T.  D.  1541.) 

[Sec.  3260a]  [Sec.  67,  act  of  Aug.  28,  1894  (28  Stat., 
509).]     That  whenever  any  person  intending  to  com-    collectors  may 
mence  or  to  continue  the  business  of  a  distiller  shall  exe-  bond.6  o?  ^stnier 
cute  a  bond  under  the  provisions  of  section  thirty-two in  certain  cases- 
hundred  and  sixty  of  the  Revised  Statutes  of  the  United 


160  DISTILLED   SPIRITS. 

States,  and  file  the  same  with  the  collector  of  internal 
revenue  for  the  district  in  which  he  proposes  to  distill,  the 
collector  may  refuse  to  approve  said  bond  if  the  person 
offering  the  same  shall  have  been  previously  convicted, 
in  a  court  of  competent  jurisdiction,  of  any  fraudulent 
noncompliance  with  any  of  the  provisions  of  law  relating 
to  the  duties  and  business  of  distillers,  or  if  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury,  shall  have  compromised  such  an 
offense  with  the  person  upon  the  payment  of  penalties  or 
otherwise,  and,  in  case  of  such  refusal,  the  person  so  pro- 
posing to  distill  may  appeal  to  the  Commissioner  of 
Internal  Revenue,  whose  decision  in  the  matter  shall  be 
final. 

Congress  has  the  power  to  require  a  bond  as  a  condition  prece- 
dent to  commencing  business.  (Mason  v.  Rollins,  2  Biss.,  99, 
Fed.  Cas.  9252.) 

Discretionary  power  of  collectors  as  to  approval  of  bonds. 
(T.  D.  998.) 

Necessity  for  increased  vigilance  on  the  part  of  collectors  to 
avoid  the  taking  of  worthless  bonds.     (T.  D.  816.) 

A  suit  on  a  distiller's  bond  is  not  a  suit  for  penalty,  but  an 
action  on  a  contract.  (U.  S.  v.  Dutcher,  2  Biss.,  51;  25  Fed.  Cas., 
15014;  8  Int.  Rev.  Rec,  161;  Raymond  v.  U.  S.,  14  Blatch.,  51; 
20  Fed.  Cas.,  11596.) 

Stockholders  of  a  corporation  engaged  in  distilling  can  not  be 
accepted  as  sureties.  (16  Op.  Atty.  Gen.,  10;  24  Int.  Rev.  Rec, 
153.) 

Bond  of  a  corporation.     Evidence  of  authority.     (T.  D.,  852.) 

Bond  valid  though  not  in  form  prescribed.  (United  States  v. 
Hodson,  10  Wall.,  395;  12  Int.  Rev.  Rec,  213;  United  States  v. 
Mynderse,  12  ibid.,  104;  14  ibid.,  180.) 

Where  a  bond  contains  conditions,  some  of  which  are  legal  and 
others  illegal,  and  they  are  severable  and  separable,  the  latter 
may  be  disregarded  and  the  former  enforced.  (United  States  v. 
Hodson  (1870),  10  Wall.,  395.) 

Married  women  giving  bond.  (United  States  v.  Garlinghouse 
et  al.,  4  Ben.,  194;  11  Int.  Rev.  Rec,  11.) 

Collector  should  require  compliance  with  State  law.  (T.  D., 
755.) 

Any  private  agreement  made  by  an  officer  which  in  any  way 
changes  the  terms  of  the  bond  is  as  to  the  Government  inoper- 
ative and  void.  (United  States  v.  Bicket,  16  Int.  Rev.  Rec, 
85;  Fed.  Cas.  14590.) 

Liability  for  tax. — The  distiller's  bond  is  liable  for  the  tax  on 
spirits  not  paid  by  the  distiller.  (U.  S-.  v.  National  Surety  Co., 
157  Fed.  Rep.,  174,  citing  U.  S.  v.  National  Surety  Co.,  122  Fed., 
904;  59  C.  C.  A.,  130;  T.  D.  665.) 

The  execution  of  a  warehousing  bond  covering  spirits  placed 
in  a  warehouse  does  not  release  liability  on  the  annual  bond. 
(United  States  v.  Richardson  (1904),  127  Fed.  Rep.,  893.) 

Effect  of  surety  signing  upon  condition  another  name  is  added. 
(Dair  v.  United  States,  16  Wall.,  1;  18  Int.  Rev.  Rec,  10.) 

Recovery  of  fine  on  distiller's  bond.  (United  States  v.  Thomp- 
son et  al.;  37  Int.  Rev.  Rec,  160;  45  Fed.  Rep.,  468.) 

Defenses  on  suits  on  bonds. — Validity  of  assessment  (Clink- 
enbeard  v.  United  States,  21  Wall.,  65;  21  Int.  Rev.  Rec,  37). 
Compromise  with  principal  (United  States  v.  Chouteau,  102 
IT.  S.,  603;  27  Int.  Rev.  Rec,  49).  As  to  assessment  being  prima 
facie  evidence  only  (United  States  v.  Rindskopf,  105  U.  S.,  418; 
28  Int.  Rev.  Rec,  141.    See  notes  under  sec.  3182,  R.  S.). 

Tim  bond  covers  not  merely  duties  imposed  by  existing  law, 
but  duties  belonging  to  and  naturally  connected  with  the  bus- 


DISTILLED   SPIRITS.  161 

iness  imposed  by  subsequent  law.  (United  States  v.  Singer,  15 
Wall.,  112;  17  Int.  Rev.  Rec,  9.  See  also  United  States  v. 
Powell,  14  Wall.,  493;  17  Int.  Rey.  Rec,  18.) 

Circumstantial  evidence.  (United  States  v.  Cole,  134  Fed. 
Rep.,  697;  T.  D.,  786.) 

Liability  of  sureties . — Liability  of  surety  not  to  be  extended 
beyond  the  terms  of  the  contract.  When,  after  a  bond  has  been 
signed  by  two  sureties  with  the  understanding  between  them 
and  the  obligor  and  obligee  that  it  was  to  be  signed  by  a  third 
surety  whose  name  was  written  in  the  bond,  the  name  of  the  third 
surety  was  altered  in  the  body  of  the  instrument,  with  the  knowl- 
edge of  the  obligee,  by  the  substitution  of  a  different  surety, 
who  then  signed  the  bond:  Held,  that  the  two  sureties  were 
discharged.  (United  States  v.  O'Neill  and  others,  30  Int.  Rev. 
Rec,  127;  19  Fed.  Rep.,  567.) 

Surety  not  liable  when  the  United  States  purchases  spirits  in 
a  distiller's  warehouse  without  retaining  the  tax  due.  (United 
States  v.  Aiken,  110  Fed.  Rep.,  370;  affirmed  in  United  States 
v.  Mullins  (surety),  119  Fed.  Rep.,  334.) 

Sureties  not  liable  when  distillery  is  carried  on  at  a  place 
other  than  that  mentioned  in  bond.  (United  States  v.  Boecker 
et  al.,  21  Wall.,  652;  21  Int.  Rev.  Rec,  78.) 

Bond  not  liable  for  tax  when  spirits  are  forfeited  and  sold  and 
tax  collected  from  purchaser.  (United  States  v.  Ulrici  et  al., 
Ill  U.  S.,  38;  30  Int.  Rey.  Rec,  111.) 

Two  assessments  covering  partially  the  same  period  will  be 
presumed  to  be  for  different  liquors  till  the  contrary  is  shown. 

An  action  upon  a  bond  conditioned  upon  the  payment  of  an 
assessment  will  not  fail  because  the  complaint  does  not  set  forth 
the  whole  of  the  assessment.  (United  States  v.  O'Neill  and 
others,  30  Int.  Rev.  Rec,  127;  19  Fed.  Rep.,  567.) 

In  an  action  on  a  distiller's  bond  upon  the  question  whether 
the  sureties  were  entitled  to  a  deduction  of  the  amount  realized 
from  sale  of  distiller's  personal  property,  held,  that  the  judgment 
should  be  entered  for  the  full  amount  of  the  bond,  the  sum  real- 
ized from  the  personal  property  not  being  a  legal  offset. 
(United  States  v.  Loeb  etal.,  14  Fed.  Rep.,  688.) 

The  proceeds  of  a  sale  of  spirits  forfeited  for  -violation  of  the 
internal-revenue  law  belong  exclusively  to  the  Government, 
and  can  not  be  applied  to  the  pavment  of  tax.  (Harkins  v. 
Williard,  146  Fed.  Rep.,  703;  77  Circuit  Court  of  Appeals,  129; 
T.  D.  1030.) 

When  spirits  are  forfeited  and  sold  and  the  tax  paid  by  the 
purchaser,  surety  on  bond  is  relieved  from  liability  on  account  of 
an  assessment  against  the  distiller  for  tax  on  the  same  spirits. 
(United  States  v.  National  Surety  Co.,  Circuit  Court  of  Appeals 
(1907),  157  Fed.  Rep.,  174,  affirming  United  States  v.  Witt,  U.  S. 
Circuit  Court,  northern  districtof  Georgia,  following  United  States 
y.  Ulrici,  ill  U.  S.,  38;  30  Int.  Rev.  Rec,  111.  See  U.  S.  Fidel- 
ity &  Guaranty  Co.  v.  United  States,  158  Fed.  Rep.,  604,  revers- 
ing 144  Fed.  Rep.,  866;  T.  D.  No.  975.) 

Liabilitv  for  tax  when  spirits  are  seized  and  sold  for  violation 
of  law.     (T.  D.  923;  T.  D.  1385.) 

Suit  should  be  first  brought  on  warehousing  bonds  to  recover 
tax  on  spirits  before  resorting  to  the  distiller's  bond.  (T.  D. 
20920,  1899.) 

Laches. — Laches  of  officers  does  not  relieve  sureties.  (United 
States  v.Hosmer  etal.,  17  Int.  Rev.  Rec,  38;  Fed.Cas.  No.  15394; 
21  Int.  Rev.  Rec,  14;  Minturn  v.  United  States,  29  Int.  Rev. 
Rec,  34;  106  U.  S.,  437.) 

Negligence  of  an  officer  in  permitting  the  removal  of  distilled 
spirits  from  a  distillery  warehouse  before  payment  of  taxes. 
(Hartv.  United  States,  95  U.  S.,  316.) 

The  stealing  of  spirits  from  warehouse  by  reason  of  the  omission 
of  officers  to  provide  sufficient  locks  is  no  defense  to  action  on 
bond.  (United  States  v.  Witten,  143  U.  S.,  76;  38  Int.  Rev. 
Rec,  46.) 

72170°— 11 11 


162  DISTILLED    SPIRITS. 

Where  spirits  were  lost  by  reason  of  the  negligence  of  a  Gov- 
ernment officer,  after  the  same  had  been  taken  in  possession  by 
the  Government,  the  bond  is  liable  for  the  tax.  (United  Stales 
v.  Guest,  143  Fed.  Rep.,  456;  T.  D.  979;  United  States  v.  Sisk, 
176  Fed.  Rep.,  885.) 

Opening  judgment;  new  trial.  A  court  has  no  power  to  open  a 
judgment  against  the  surety  on  a  distiller's  bond  and  grant  a  new 
trial  upon  the  ground  that  certain  facts,  existing  when  the  case 
was  tried,  were  not  then  put  in  evidence.  (United  States  v. 
Millingeretal.,  7  Fed.  Rep.,  187.) 

Production  of  papers. — The  defendants  in  a  suit  on  a  distiller's 
bond,  instituted  for  the  recovery  of  taxes  assessed  under  section 
3253,  Revised  Statutes,  have  no  legal  right  to  the  use  at  the  trial 
of  the  reports,  documents,  and  other  papers  on  file  in  the  office 
of  the  Commissioner  of  Internal  Revenue.  Nor  has  the  court 
authority  to  compel  the  production  of  such  papers.  (16  Op. 
Atty.  Gen.,  24;  24  Int.  Rev.  Rec,  178.) 

Fraudulent  bond. — Indictment  for  executing  and  signing  a  false 
and  fraudulent  bond.  (United  States  v.  O'Brien,  7  Int.  Rev. 
Rec,  61;   Fed.  Cas.  15909.) 

a  Bro^d0t  untu     ^ec.  3261.  No  collector  shall  approve  the  bond  of  any 
law  and  reguia-  distiller  until  all  the  requirements  of  the  law  and  all  regu- 
pHed  with.  com"  lations  made  by  the  Commissioner  of  Internal  Revenue  in 
relation  to  distilleries,  in  pursuance  thereof,  have  been 
complied  with. 
coUeSoryagainst     Every  collector  who  violates  this  provision  shall  forfeit 
and  pay  two  thousand  dollars,  and  be  dismissed  from 
office, 
be^™  inTeS     Sec-  3262  ^-as  amended  by  sec.  2,  act  of  May  28, 1880  {21 
simple,  or  have  Stat.,  lJf.5) .]  No  bond  of  a  distiller  shall  be  approved,  unless 
of"wner,  £tcDsent  heis  the  owner  in  fee,  unincumbered  by  any  mortgage,  judg- 
ment, or  other  lien,  of  the  lot  or  tract  of  land  on  which  the 
distillery  is  situated,  or  unless  he  files  with  the  collector, 
in  connection  with  his  notice,  the  written  consent  of  the 
owner  of  the  fee,  and  of  any  mortgagee,  judgment-cred- 
itor, or  other  person  having  a  hen  thereon,  duly  acknowl- 
edged, that  the  premises  may  be  used  for  the  purpose  of 
distilling  spirits,  subject  to  the  provisions  of  law,  and  ex- 
pressly stipulating  that  the  lien  of  the  United  States  for 
taxes  and  penalties  shall  have  priority  of  such  mortgage, 
judgment,  or  other  incumbrance,  and  that  in  case  of  the 
forfeiture  of  the  distillery  premises,  or  of  any  part  thereof, 
the  title  of  the  same  shall  vest  in  the  United  States,  dis- 
charged from  such  mortgage,  judgment,  or  other  incum- 
brance. 

In  any  case  where  the  owner  of  a  distillery  or  distilling- 
apparatus,  erected  prior  to  the  twentieth  day  of  July, 
eighteen  hundred  and  sixty-eight  has  only  an  estate  for  a 
term  of  years  or  other  estate  less  than  fee-simple  in  the  lot 
or  tract  of  land  on  which  the  distillery  is  situated,  the  evi- 
dence of  title  to  which  shall  have  been  duly  recorded  prior 
to  that  date;  or  in  like  case,  where  the  lease  or  other  evi- 
dence of  title  is  held  but  was  not  required  by  the  laws  of 
the  State  to  be  recorded  in  order  to  be  valid  at  the  time  of 
its  execution;  or  in  any  case  of  such  prior  erection  where 
the  title  was  then,  and  lias  continued  to  be,  in  litigation; 
or  in  any  case  of  such  prior  erection  where  such  owner  is 


DISTILLED   SPIRITS.  163 

possessed  of  the  fee,  but  incumbered  with  a  mortgage  exe- 
cuted and  duly  recorded  prior  to  said  twentieth  of  July, 
eighteen  hundred  and  sixty-eight,  and  not  due,  or  in  any 
case  of  such  prior  erection  where  the  fee  is  held  by  a  feme- 
covert,  minor,  person  of  unsound  mind,  or  other  person  in- 
capable of  giving  consent,  as  hereinbefore  required,  the 
Aralue  of  such  lot  or  tract  of  land,  together  with  the  build- 
ing and  distilling-apparatus,  shall  be  appraised  in  the 
manner  to  be  prescribed  by  the  Commissioner  of  Internal 
Revenue;  and  the  collector  may,  at  the  discretion  of  the 
Commissioner,  be  authorized  to  accept,  in  lieu  of  the  said 
written  consent  of  the  owner  of  the  fee,  the  bond  of  such 
distiller,  in  such  form  as  the  Commissioner  may  prescribe, 
with  not  less  than  two  sureties,  conditioned  that  in  case 
the  distillery,  distilling-apparatus,  or  any  part  thereof, 
shall  by  final  judgment  be  forfeited  for  the  violation  of 
any  of  the  provisions  of  law,  the  obligors  shall  pay  the 
amount  stated  in  said  bond.  Said  sureties  shall  be  residents 
of  the  collection-district  or  county,  or  of  an  adjoining 
county  in  the  same  State  in  which  the  distillery  is  situ- 
ated, and  owners  of  unincumbered  real  estate  in  said 
district  or  county,  or  adjoining  county,  equal  to  such  ap- 
praised value,  and  the  penal  sum  of  said  bond  shall  be 
equal  to  the  appraised  value  of  said  lot  or  tract  of  land 
together  with  the  buildings  and  distilling  apparatus: 

Provided,  That  in  case  of  any  distillery  sold  at  judicial  or 
other  sale  in  favor  of  the  United  States,  a  bond  may  be 
taken  at  the  discretion  of  the  Commissioner  of  Internal- 
Revenue,  in  lieu  of  the  written  consent  required  by  this 
section,  and  the  person  giving  such  bond  may  be  allowed 
to  operate  such  a  distillery  during  the  existence  of  the 
right  of  redemption  from  such  sale,  on  complying  with  all 
the  other  provisions  of  law. 

And  provided  also,  That  the  collector  may  at  any  time,  at 
the  discretion  of  the  Commissioner,  accept  such  bond  as  is 
authorized  to  be  given  by  the  distiller  in  lieu  of  the  written 
consent  of  the  owner  of  the  fee  in  the  case  of  a  distillery 
erected  prior  to  July  twentieth,  eighteen  hundred  and  sixty- 
eight,  notwithstanding  such  distillery  has  since  then  been 
increased  by  the  addition  of  land  or  buildings  adjacent  or 
contiguous  thereto,  not  owned  by  the  distiller  himself  in  fee; 
such  bond  to  be  for  and  in  respect  of  such  addition  only,  if 
the  distillery  be  one  which  the  distiller  owns  in  fee  or  in 
respect  to  which  he  has  procured  the  written  consent  of  the 
owner  of  the  fee  or  other  incumbrance,  otherwise  to  be  for 
and  in  respect  of  the  entire  distillery  as  increased  by  such 
additions. 

Enforcement  of  lien.  Sale  of  leasehold  interest.  (Mansfield 
v.  Excelsiop  Refinery  Co.,  36  Int.  Rev.  Rec,  165;  135  TJ.  S.,  326.) 

Liability  of  sureties  when  distillery  premises  are  encumbered. 
(Osborne  v.  United  States,  19  Wall.,  577;  20  Int.  Rev.  Rec,  126.) 

Sec.  3263.  Every  distiller  and  person  intending  to  en-eJlan  of  distin- 
gage  in  the  business  of  a  distiller  shall,  previous  to  the 
approval  of  his  bond,  cause  to  be  made,  under  the  direc- 


164  DISTILLED   SPIRITS. 

tion  of  the  collector  of  the  district,  an  accurate  plan  and 
description,  in  triplicate,  of  the  distillery  and  distilling- 
apparatus,  distinctly  showing  the  location  of  every  still, 
boiler,doubler, worm-tub,  and  receiving-cistern,  the  course 
and  construction  of  all  fixed  pipes  used  or  to  be  used  in  the 
distillery,  and  of  every  branch  and  every  cock  or  joint 
thereof,  and  of  every  valve  therein,  together  with  every 
place,  vessel,  tub,  or  utensil  from  and  to  which  any  such 

Eipe  leads,  or  with  which  it  communicates;  also  the  num- 
er  and  location  and  cubic  contents  of  every  still,  mash- 
tub,  and  fermenting-tub,  the  cubic  contents  of  every  re- 
ceiving-cistern, and  the  color  of  each  fixed  pipe,  as  re- 
q  aired  in  this  Title.  One  copy  of  said  plan  and  description 
shall  be  kept  displayed  in  some  conspicuous  place  in  the 
distillery,  and  two  copies  shall  be  furnished  to  the  collector 
of  the  district,  one  of  which  shall  be  kept  by  him,  and  the 
other  transmitted  to  the  Commissioner  of  Internal  Reve- 
nue. The  accuracy  of  every  such  plan  and  description 
shall  be  verified  by  the  collector,  the  draughtsman,  and 
the  distiller;  and  no  alteration  shall  be  made  in  such  dis- 
tillery without  the  consent,  in  writing,  of  the  collector. 
Any  alteration  so  made  shall  be  shown  on  the  original,  or 
by  a  supplemental  plan  and  description,  and  a  reference 
thereto  noted  on  the  original,  as  the  collector  may  direct; 
and  any  supplemental  plan  and  description  shall  be  exe- 
cuted and  preserved  in  the  same  manner  as  the  original. 

Distillers  whose  distilleries  have  a  daily  spirit-producing 
capacity  of  30  gallons  of  proof  spirits,  or  less,  are  exempted  from 
the  provision  requiring  a  plan.     (Sec.  3255a.) 

surveys  of  dis-  gEC>  3264  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  (20 
Stat,  327),  and  act  of  June  22, 1910  (36  Stat,  590)].  On  re- 
ceipt of  notice  that  any  person,  firm,  or  corporation  wishes 
to  commence  the  business  of  distilling,  the  collector,  or  a 
deputy  collector,  to  be  designated  by  him,  shall  proceed  in 
person,  at  the  expense  of  the  United  States,  with  the  aid 
of  an  assistant  designated  by  the  Commissioner  of  Internal 
Revenue  for  the  purpose  of  making  surveys  of  distilleries 
in  that  district,  to  make  a  survey  of  such  distillery  for  the 
purpose  of  estimating  and  determining  its  true  spirit- 
producing  capacity  for  a  day  of  twenty-four  hours. 

In  all  surveys  forty-five  gallons  of  mash  or  beer  brewed  or 
fermented  from  grain  shall  represent  not  less  than  one  bushel 
of  grain,  and  seven  gallons  of  mash  or  beer  brewed  or  fer- 
i9ioCt  °f  June  22'  mentedfrom  molasses  shall  represent  not  less  than  one  gallon 
of  molasses,  except  in  distilleries  operated  on  the  sour  mash, 
principle,  in  which  distilleries  sixty  gallons  of  beer  brewed  or 
fermented  from  grain  shall  represent  not  less  than  one  bushel 
of  grain,  and  except  that  in  distilleries  where  the  filtration- 
aeration  process  is  used,  with  the  approval' of  the  Commis- 
sioner of  Internal  Revenue;  that  is,  where  the  mash  after  it 
leaves  the  mash  tub  is  passed  through  a  filtering  machine 
before  it  is  run  into  the  fermenting  tub,  and  only  the  filtered 
liquor  2>asses  into  the  fermenting  tub,  seventy  gallons  of  beer 
brewed  or  fermented  from  grain  shall  represent  not  less  than 


DISTILLED   SPIEITS.  165 

one  bushel  of \  grain.  The  provisions  hereof  relating  to 
fit ration-aeration  process  shall  apply  only  to  sweet-mash 
distilleries. 

A  written  report  of  such  survey  shall  be  made  in  tripli- 
cate, of  which  one  copy  shall  be  delivered  to  the  distiller, 
one  copy  shall  be  retained  by  the  collector,  and  one  copy 
shall  be  transmitted  to  the  Commissioner  of  Internal  Rev- 
enue, and  the  survey  shall  take  effect  upon  the  delivery  of 
such  copy  to  the  distiller. 

AVhenever  the  Commissioner  is  satisfied  that  any  report    Resurvey. 
of  the  capacity  of  a  distillery  is  incorrect  or  needs  revision, 
he  shall  direct  the  collector  to  make  in  like  manner  an- 
other survey  of  said  distillery,  and  the  report  thereof  shall 
be  made  and  deposited  as  hereinbefore  required: 

Provided,  That  the  survey^  of  any  distillery  estimated 
and  stated  by  the  distiller,  in  his  notice  of  intention  to 
distill,  as  capable  of  distilling  not  more  than  one  hundred 
and  fifty  proof-gallons  of  distilled  spirits  every  twenty- 
four  hours  may  be  made  by  the  collector  or  by  a  deputy 
collector  without  the  aid  of  an  assistant;  and  that  all  sur- 
veys made  for  the  purpose  of  correcting  clerical  errors  or 
errors  of  computation  existing  in  the  report  of  a  previous 
survey,  and  all  surveys  made  for  the  purpose  of  changing 
the  true  spirit-producing  capacity  of  any  distillery  for  a 
day  of  twenty-four  hours  as  estimated  and  determined  by 
a  previous  survey,  but  which  surveys  do  not  require  the 
remeasuring  of  the  fermenting-tubs  in  a  grain  or  molasses 
distillery,  or  the  still  or  stills  in  a  distillery  of  apples, 
peaches,  or  grapes  exclusively,  may  be  made  without  tak- 
ing the  measurements  of  the  fermenting  tubs  or  stills,  as 
the  case  may  be,  and  without  revisiting  the  distillery: 

And  provided  further,  That  the  Commissioner  of  Internal 
Revenue  may,  whenever  he  shall  deem  it  proper,  designate 
an  officer,  agent,  or  person  other  than  the  collector  or 
deputy  collector,  to  make,  with  or  without  the  aid  of  a 
designated  assistant,  the  surveys  and  resurveys  herein- 
above provided  for. 

As  to  necessity  of  delivering  a  copy  of  the  survey  to  a  distiller 
to  fix  his  liability;  survey  binding  on  distiller.  (Peabody  v. 
Stark,  16  Wall.,  240;  17  Int.  Rev.  Rec.,  106.  United  States  v. 
Ferrary,  93  U.  S.  (3  Otto),  625;  22  Int.  Rev.  Rec,  394.  Wright 
v.  United  States,  10S  U.  S.,  281.) 

Circular  No.  739  (T.  D.  1641).    Filtration— areation  process. 

Sec.  3265.  Any  person  who  manufactures  any  still,  a^^>7Sa% 
boiler,  or  other  vessel  to  be  used  for  the  purpose  of  dis-stm. 
tilling,  shall,  before  the  same  is  removed  from  the  place 
of  manufacture,  notify  in  writing  the  collector  of  the  dis- 
trict in  which  such  still,  boiler,  or  other  vessel  is  to  be  used 
or  set  up,  by  whom  it  is  to  be  used,  its  capacity,  and  the 
time  when  the  same  is  to  be  removed  from  the  place  of 
manufacture;  and  no  such  still,  boiler,  or  other  vessel 
shall  be  set  up  without  the  permit  in  writing  of  the  said 
collector  for  that  purpose;  and  any  person  who  sets  up    Penalty  for  set- 
any  such  still,  boiler,  or  other  vessel,  without  first  obtain-  oufpermit! Wlth" 
ing  a  permit  from  the  said  collector  of  the  district  in  which 


166  DISTILLED   SPIRITS.. 

such  still,  boiler,  or  other  vessel  is  intended  to  be  used,  or 
who  fails  to  give  such  notice,  shall  pay  in  either  case  the 
sum  of  live  hundred  dollars,  and  shall  forfeit  the  distilling 
apparatus  thus  removed  or  set  up  in  violation  of  law. 

Section  3265  applies  only  to  stills  intended  for  distillation  of 
spirits  (T.  D.  1344).     See  section  3258. 

This  section  does  not  apply  to  stills  for  redistilling  benzine  and 
gasoline  (T.  D.  1021). 

ceiTtiSinlliprgemis°e°     Sec-  3266-  No  person  shall  use  any  still,  boiler,  or  other 
prohibited;  pen-  vessel,  for  the  purpose  of  distilling,  in  any  dwelling-house, 
y'  or  in  any  shed,  yard,  or  inclosure  connected  with  any 

dwelling-house,  or  on  board  of  any  vessel  or  boat,  or  in 
any  building,  or  on  any  premises  where  beer,  lager  beer, 
ale,  porter,  or  other  fermented  liquors,  vinegar,  or  ether 
are  (is)  manufactured  or  produced,  or  where  sugars  or 
sirups  are  refined,  or  where  liquors  of  any  description  are 
retailed,  or  where  any  other  business  is  carried  on;  or 
within  six  hundred  feet  in  a  direct  line  of  any  premises 
authorized  to  be  used  for  rectifying;  and  every  person 
who  does  any  of  the  acts  prohibited  by  this  section,  or  aids 
or  assists  therein,  or  causes  or  procures  the  same  to  be 
done,  shall  be  fined  one  thousand  dollars  and  imprisoned 
for  not  less  than  six  months  nor  more  than  two  years,  in 
the  discretion  of  the  court,  for  each  such  offense:  Pro- 
vided, That  saleratus  may  be  manufactured,  or  meal  or 
flour  ground  from  grain,  in  any  building  or  on  any  prem- 
ises where  spirits  are  distilled;  but  such  meal  or  flour  shall 
be  used  only  for  distillation  on  the  premises:  Provided 
further,  That  any  boiler  used  in  generating  steam  or  heat- 
ing water  to  be  used  in  any  distillery,  may  be  located  in 
any  other  building  or  on  any  other  premises  to  be  con- 
nected with  such  still  or  boiling-tubs,  by  suitable  pipes  or 
other  apparatus,  or  the  steam  from  such  boiler  in  the  dis- 
tillery may  be  conveyed  to  other  premises  to  be  used  for 
manufacturing  or  other  purposes. 

Vinegar  (Sec.  3282).     See  act  of  June  14,  1879,  p.  176. 

Rectifying  within  600  feet,  see  section  3244,  subsection  third, 
and  section  3280  (8  Int.  Rev.  Rec,  73). 

Distilling  on  premises  where  vinegar  was  manufactured. 
(United  States  v.  Simmons  96  U.  S.  (6  Otto),  360;  24  Int.  Rev. 
Rec,  347.) 

Indictment  under  section  3266.  (United  States  v.  Malone,  9 
Fed.  Rep.,  897.) 

The  prohibition  of  a  distillery  within  600  feet  of  a  rectifying 
establishment  is  not  an  unwarrantable  interference  with  the 
use  and  disposition  of  property.  If  a  business  affords  unusual 
facilities  for  evading  the  Government  tax,  then  Congress  may 
prescribe  the  modes,  conditions,  and  limitations  under  which 
that  business  can  be  transacted.     (Mason  v.  Rollins,  2  Biss.,  99.) 

temHn'dist'iiier'.     S?°-  3267-  T!ie  owner,  agent,  or  superintendent  of  any 
ies.  distillery  established  as  hereinbefore  provided,  shall  erect, 

in  a  room  or  building  to  be  provided  and  used  for  that  pur- 
pose, and  for  no  other,  and  to  be  constructed  in  the  man- 
ner to  be  prescribed  by  the  Commissioner  of  Internal  Rev- 
enue, two  or  more  receiving-cisterns,  each  to  be  at  least  of 
sufficient  capacity  to  hold  all  the  spirits  distilled  during 


DISTILLED   SPIRITS.  167 

the  day  of  twenty-four  hours,  into  which  shall  be  con- 
veyed all  the  spirits  produced  in  said  distillery ;  and  each 
of  said  cisterns  shall  be  so  constructed  as  to  leave  an  open 
space  of  at  least  three  feet  between  the  top  thereof  and 
the  floor  or  roof  above,  and  of  not  less  than  eighteen  inches 
between  the  bottom  thereof  and  the  floor  below,  and  shall 
be  so  situated  that  the  officer  can  pass  around  the  same, 
and  shall  be  connected  with  the  outlet  of  the  worm  or  con- 
denser by  suitable  pipes  or  other  apparatus,  so  constructed 
as  always  to  be  exposed  to  the  view  of  the  officer,  and  so 
connected  and  constructed  as  to  prevent  the  abstraction 
of  spirits  while  passing  from  the  outlet  of  the  worm  or 
condenser  back  to  the  still  or  doubler,  or  forward  to  the 
receiving-cistern,  Such  cisterns  and  the  room  in  which 
they  are  contained  shall  be  in  charge  and  under  the  lock 
and  seal  of  the  internal-revenue  ganger  designated  for  that 
duty ;  and  all  locks  and  seals  required  by  law  shall  be  pro- 
vided by  the  Commissioner  of  Internal  Revenue,  at  the 
expense  of  the  United  States;  and  the  keys  shall  be  in 
charge  of  the  collector  or  such  gauger  as  he  may  designate. 
On  the  third  day  after  the  spirits  are  conveyed  into  such 
cistern  they  shall  be  drawn  off  into  casks,  under  the  super- 
vision of  such  gauger,  in  the  presence  of  the  store-keeper, 
and  be  removed  directly  to  the  distillery  warehouse;  but 
on  special  application  to  the  collector  by  the  owner,  agent, 
or  superintendent  of  any  distillery,  the  spirits  may  be 
drawn  off  from  the  said  cisterns,  under  the  supervision  of 
the  gauger,  at  an}"  time  previous  to  the  third  day. 

See  [Sec.  3255a],  allowing  exemption  from  certain  provisions 
of  this  section  in  case  of  small  distilleries. 

The  penalty  for  failing  to  comply  with  the  requirements  of 
this  section  is  provided  by  section  3456,  page  361 .  ( United  States 
v.  Wm.  McKim  &  Co.,  10  Int.  Rev.  Rec,  74.) 

Question  of  intent  considered.  (Felton  et  al.  v.  United  States, 
96  U.  S.  (6  Otto),  699;  24  Int.  Rev.  Rec,  252.) 

Sec.  3268.  Every  person  who  destroys,  breaks,  injures,  J^^^1^ 
or  tampers  with  any  lock  or  seal  which  may  be  placed  on  cistern,  etc.;  pen- 
any  cistern-room  or  building  by   the   duly   authorized  a!ty- 
officers  of  the  revenue,  or  opens  said  lock  or  seal,  or  the 
door  to  said  cistern-room  or  building,  or  in  any  manner 
gains  access  to  the  contents  therein,  in  the  absence  of  the 
proper  officer,  shall  be  fined  not  less  than  five  hundred 
dollars  nor  more  than  five  thousand  dollars,   and  im- 
prisoned not  less  than  one  year  nor  more  than  three  years. 

Gaining    access    to    distillery    bottling    warehouse    without 
authority.     (T.  D.  990.) 
Tampering  with  locks,  etc.,  penalty.     (Sec.  3311,  p.  206.) 

Sec.  3269.  The  door  of  the  furnace  of  every  still  ord(J^ces^, 
boiler  used  in  any  distillery  shall  be  so  contracted  that  it  tanks. 
may  be  securely  fastened  and  locked.  The  fermenting- 
tubs  shall  be  so  placed  as  to  be  easily  accessible  to  any 
revenue  officer,  and  each  tub  shall  have  distinctly  painted 
thereon  in  oil-colors  its  cubic  contents  in  gallons  and  the 
number  of  the  tub.     There  shall  be  a  clear  space  of  not 


Penalty. 


168  DISTILLED   SPIRITS. 

less  than  one  foot  around  every  wood-still,  and  not  less 
than  two  feet  around  every  doubler  and  worm-tank. 
The  doubler  and  worm-tanks  shall  be  elevated  not  less 
than  one  foot  from  the  floor,  and  every  fixed  pipe  to  be 
used  b}^  the  distiller,  except  for  conveyance  01  water,  or 
of  spent  mash  or  beer  only,  shall  be  so  fixed  and  placed 
as  to  be  capable  of  being  examined  by  the  officer  for  the 
whole  of  its  length  or  course,  and  shall  be  painted,  and 
kept  painted,  as  follows,  that  is  to  say:  Every  pipe  for 
the  conve}rance  of  mash  or  beer  shall  be  painted  of  a  red 
color;  every  pipe  for  the  conveyance  of  low- wines  back 
into  the  still  or  doubler  shall  be  painted  blue;  every  pipe 
for  the  conveyance  of  spirits  shall  be  painted  black,  and 
every  pipe  for  the  conveyance  of  water  shall  be  painted 
white.  Whenever  any  fixed  pipe  is  used  by  any  distiller 
which  is  not  painted  or  kept  painted  as  herein  directed, 
or  which  is  painted  otherwise  than  as  herein  directed,  he 
shall  forfeit  the  sum  of  one  thousand  dollars. .. 
See  section  3255a,  authorizing  certain  exemptions. 
Apparatus  and  Sec.  3270.  The  Commissioner  of  Internal  Revenue  is 
fastenings.  authorized  to  order  and  require  such  changes  of  or  addi- 

tions to  distilling  apparatus,  connecting-pipes,  pumps,  or 
cisterns,  or  any  machinery  connected  with  or  used  in  or  on 
the  distiller}^  premises,  or  may  require  to  be  put  on  any  of 
the  stills,  tubs,  cisterns,  pipes,  or  other  vessels,  such 
fastenings,  locks,  or  seals  as  he  may  deem  necessary. 

housetillery  ware"  ^EC"  S2^1  •  Every  distiller  shall  provide,  at  his  own 
expense,  a  warehouse,  to  be  situated  on  and  to  contsitute  a 
part  of  his  distillery  premises,  and  to  be  used  only  for  the 
storage  of  distilled  spirits  of  his  own  manufacture  until  the 
tax  thereon  shall  have  been  paid;  but  no  dwelling-house 
shall  be  used  for  such  purpose,  and  no  door,  window,  or 
other  opening  shall  be  made  or  permitted  in  the  walls  of 
such  warehouse  leading  into  the  distillery  or  into  any 
other  room  or  building;  and  such  warehouse,  when  ap- 
proved by  the  Commissioner  of  Internal  Revenue,  on 
report  of  the  collector,  is  hereby  declared  to  be  a  bonded 
warehouse  of  the  United  States,  to  be  known  as  a  dis- 
tillery warehouse,  and  shall  be  under  the  direction  and 
control  of  the  collector  of  the  district,  and  in  charge  of  an 
internal-revenue  store-keeper,  assigned  thereto  by  the 
Commissioner. 

A  bonded  warehouse  is  an  agency  of  the  Government.  (George 
v.  Fourth  National  Bank  of  Lainsville,  41  Fed.  Rep.,  263.) 

The  Government  has  a  lien  on  spirits  in  warehouse  for  defi- 
ciency tax,  and  a  purchaser  takes  the  property  subject  to  the 
lien.     (Hartmanu.  Bean,  99  U.  S.,  393,  25  Int.  Rev.  Rec,  141.) 

Goods  in  the  hands  of  the  United  States  held  for  taxes  can 
not  be  attached  by  State  officers.    (Harris  v.  Dennie,  3  Pet.  292.) 

Spirits  in  bond  QOl  liable  to  seizure  by  sheriff.  (McCullough 
v.  Large  et  al.,  20  Fed.  Rep.,  309;  30  Int.  Rev.  Rec,  166;  T.  D. 
No.  21710,  L899.) 

Distilled  spirits  in  a  United  States  bonded  warehouse  can  not 
be  seized  und<  r  State  process.     (1S94).     (21  Op.  Atty.  Gen.,  73.) 

Sheriff  can  sell  without  taking  possession.  (Kiel  v.  Harris, 
31  Int.  Rev.  Rec,  408.) 


DISTILLED    SPIRITS.  169 

Spirits  in  warehouse  destroyed  by  fire,  section  3221,  page  117 
(Farrell  v.  United  States,  99  U.  S.,  221;  25  Int.  Rev.  Rec,  83; 
Insurance  Companies  v.  Thompson,  5  Otto,  547;  United  States  v. 
Alexander  et  al.,  110  U.  S.,  325.) 

Special  bonded  warehouses  for  fruit  brandy.  (See  act  of 
Mar.  3,  1877,  p.  192,  and  act  of  October  18,  188S,  p.  192.) 

[Sec.  3271a].  [Act  of  Jan.  S,  1874  {18  Stat,  2).]  That  Jg™^™* 
when  from  death  or  any  other  cause  there  shall  be  any  continued  m  use 
change  in  the  person,  firm  or  company  engaged  in  the  Jj^  occurred  \l 
business  of  distilling  at  any  distillery,  and  the  person,  0jeth™t^f^;nt 
firm  or  company  that  by  reason  of  such  change  ceases  to 
carry  on  said  business  at  such  distillery  has  at  the  time  of 
such  change  spirits  in  the  distillery  warehouse,  it  shall  be 
lawful  for  the  Commissioner  of  Internal  Revenue,  upon 
the    written    consent    of    the    surviving    principals    and 
sureties  interested,  and  under  such  rules  and  regulations, 
and  upon  such  other  conditions  as  he  may  prescribe,  to wYrehouseby 
permit  the  succeeding  person,  firm,  or  company  to  use  ™c*esasors  ia  cer- 
the  distillery  warehouse  on  the  premises  in  the  same 
manner  as  if  it  did  not  contain  distilled  spirits  belonging 
to  the  original  person,  firm  or  company   after  setting 
apart  and  separating,  by  a  secure  and  unbroken  partition    Partition, 
such  portion  of  it  as  may  be  necessary  for  the  storage 
and  safe-keeping  of  the  spirits  distilled  by  the  original 

f)erson,  firm  or  company,  during  the  period  allowed  by 
aw  for  the  removal  of  distilled  spirits  from  distillery 
warehouses,  or  until  said  spirits  are  removed,  and  the  tax 
paid  thereon  within  that  time. 

Provided,  That  nothing  herein  contained  shall  impair  no^™pJ°erdtax 
or  in  any  way  affect  the  lien  existing  at  the  time  of  such 
change  under  section  one  of  the  internal  revenue  act  of 
July  twenty,  eighteen  hundred  and  sixty-eight,  as 
amended,  or  other  liabilities  under  any  internal  revenue 
law,  but  the  existence  of  such  lien  shall  be  no  ground  for 
refusing  to  approve  the  bond  of  the  succeeding  person, 
firm  or  company,  anything  in  section  eight  of  the  said 
act  of  July  twenty,  eighteen  hundred  and  sixty-eight, 
as  amended,  to  the  contrary  notwithstanding. 

The  provisions  of  the  act  of  July  20,  1868,  here  referred  to  (15 
Stat.,  125,  128).  and  the  amendments  thereto,  are  incorporated  in 
the  Revised  Statutes,  sections  3251,  3260,  3262. 

Sec.  3272.  Whenever  in  the  opinion  of  the  Commis-  h  JS^kJES 
sioner  of  Internal  Revenue  any  distillery  or  other  ware- unsafe. 
house  is  unsafe  or  unfit  for  use,  or  the  merchandise 
therein  is  for  any  reason  liable  to  loss  or  great  wastage, 
be  may  discontinue  such  warehouse,  and  require  the 
merchandise  therein  to  be  transferred  to  such  other 
warehouse  as  he  may  designate  and  within  such  time 
as  he  may  prescribe.  Such  transfer  shall  be  made  under 
the  supervision  of  the  collector,  or  of  such  other  officer 
as  may  be  designated  by  the  Commissioner,  and  the 
expense  thereof  shall  be  paid  by  the  owner  of  the  mer- 
chandise. Whenever  the  owner  of  such  merchandise 
fails  to  make  such  transfer  within  the  time  prescribed, 


170  DISTILLED   SPIRITS. 

or  to  pay  the  just  and  proper  expense  of  such  transfer, 
as   ascertained   and   determined   by   the   Commissioner, 
such  merchandise  may  be  seized  and  sold  by  the  col- 
lector in  the  same  manner  as  goods  are  sold  upon  dis- 
traint for  taxes,  and  the  proceeds  of  such  sale  shall  be 
applied  to  the  payment  of  the  taxes  due  thereon  and  the 
cost  and  expenses  of  such  sale  and  removal,  and  the 
balance  paid  over  to  the  owner  of  such  merchandise. 
storekeepers     gEC#  3273.  The  store-keeper  assigned  to  any  distillery 
dor edirectionUof warehouse  shall  also  have  charge  of  the  distillery  con- 
coiiector.  nected    therewith;  and    every    store-keeper    shall    have 

charge  of  the  warehouse  to  which  he  is  assigned,  and  of 
such  distillery,  under  the  direction  of  the  collector  con- 
trolling the  same. 

Storekeepers'  books  and  returns.    (Sees.  3301, 3302,  p.  199,  200.) 

custody  and     Sec.  3274.  Every  distillery  warehouse  shall  be  in  the 

warnehonse.nt    °f  joint   custody   of   the   store-keeper   and   the   proprietor 

thereof.     It  shall  be  kept  securely  locked,  and  shall  at  no 

time  be  unlocked,  or  opened,  or  remain  open,  unless  in 

the  presence  of  such  store-keeper,  or  other  person  who 

may  be  designated  to  act  for  him,  as  provided  by  law; 

and  no  articles  shall  be  received  in  or  delivered  from 

such  warehouse  except  on  an  order  or  permit  addressed 

to  the  store-keeper  and  signed  by  the  collector  having 

control  of  the  warehouse. 

Distiller  to     Sec.  3275.  No  fence  or  wall  of  a  height  greater  than 

acceessibie!stillery five   feet   shall   be   erected   or   maintained   around   the 

premises  of  any  distillery,  so  as  to  prevent  easy  and 

immediate  access  to  such  distillery.     And  every  distiller 

shall  furnish  to  the  collector  of  the  district  as  many 

keys  of  the  gates  and  doors  of  the  distillery  as  may  be 

required  by  the  collector,  from  time  to  time,  for  any 

revenue  officer  or  other  person  who  may  be  authorized 

to  make  survey  or  inspection  of  the  premises,  or  of  the 

contents  thereof;  and  said  distillery  shall  be  kept  always 

accessible  to  any  officer  or  other  person  having  any  such 

Penalty.  hey.     Every  person  who  violates  any  of  the  foregoing 

provisions  of  this  section  by  negligence  or  refusal,  or 

otherwise,  shall  pav  a  penalty  of  five  hundred  dollars. 

Power  of^rev-     Sec.  3276  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  (20 

enter  annexion- Stat.,  327)  ].     It  shall  be  lawful  for  any  revenue  officer 

ine  distilleries.     &^  arj  times>  as  we}j  ^y  night  as  by  day,  to  enter  into  any 

distillery  or  building  or  place  used  for  the  business  of 
distilling,  or  used  in  connection  therewith  for  storage  or 
other  purposes,  and  to  examine,  gauge,  measure,  and 
take  an  account  of  every  still  or  other  vessel  or  utensil 
of  any  kind,  and  of  all  low-wines,  and  of  the  quantity 
and  gravity  of  all  mash,  wort,  or  beer,  and  of  all  yeast, 
or  other  compositions  for  exciting  or  producing  fermenta- 
tion in  any  mash  or  beer,  of  all  spirits  and  of  all  materials 
for  making  or  distilling  spirits,  which  may  be  in  any 
such  distillery  or  premises,  or  in  possession  of  the  dis- 
tiller. 


DISTILLED    SPIRITS.  171 

And  whenever  any  internal-revenue  officer,  or  any  fl<^^^^ of' 
person  called  by  him  to  his  aid,  is  hindered,  obstructed, 
or  prevented  by  any  distiller,  or  by  any  workman,  or 
other  person  acting  for  such  distiller  or  in  his  employ, 
from  entering  into  any  such  distillery  or  building  or 
place  as  aforesaid;  or  any  such  officer  is  by  the  distiller 
or  his  workmen,  or  any  person  in  his  employ,  prevented 
or  hindered  from,  or  opposed,  or  obstructed,  or  molested 
in  the  performance  of  his  duty  under  the  internal- 
revenue  laws,  in  any  respect,  the  distiller  shall  forfeit 
the  sum  of  not  exceeding  one  thousand  dollars.  penait  fomot 

And  whenever  any  officer,  having  demanded  admit- admitting  officer. 
tance  into  a  distillery  or  distillery  premises,  and  having 
declared  his  name  and  office,  is  not  admitted  into  such 
distillery  or  premises  by  the  distiller  or  other  person 
having  charge  thereof,  it  shall  be  lawful  for  such  officer 
at  all  times,  as  well  by  night  as  by  day,  to  break  open  by 
force  any  ©f  the  doors  or  windows,  or  to  break  through 
any  of  the  walls  of  such  distillery  or  premises  necessary 
to  be  broken  open  or  through,  to  enable  him  to  enter  the 
said  distillery  or  premises;  and  the  distiller  shall  forfeit 
the  sum  of  not  exceeding  one  thousand  dollars. 

All  the  provisions  of  sections  3276,  3277,  and  3278  are  extended 
and  made  applicable  to  all  premises  whereon  vinegar  is  manu- 
factured, to  all  manufacturers  of  vinegar  and  their  workmen  or 
other  persons  employed  by  them.     (Sec.  3282,  p.  175.) 

Obstructing  or  assaulting  officers.  (Sec.  65,  Penal  code,  p.  415.) 

Sec.  3277.  On   the   demand   of   any   internal-revenue  re582?rto  furd 
officer,  every  distiller  or  rectifier  shall  furnish  strong,  nis^^^^ff  f°' 
safe,  and  convenient  ladders  of  sufficient  length  to  enable  penalty  for  neg- 
the  officer  to  examine  and  gauge  any  vessel  or  utensils lect- 
in  such  distillery  or  premises;  and  shall,   at  all  times 
when  required,  supply  all  assistance,  lights,  ladders,  tools, 
staging,   or  other   things   necessary  for  inspecting   the 
premises,    stocks,    tools,    and    apparatus    belonging    to 
such  person,  and  shall  open  all  doors,  and  open  for  exami- 
nation all  boxes,  packages,  and  all  casks,  barrels,  and 
other  vessels  not  under  the  control  of  the  revenue  officer 
in  charge,  under  a  penalty  of  five  hundred  dollars  for 
every  refusal  or  neglect  so  to  do. 

Section  3152,  makes  this  section  applicable  to  revenue  agents 
(p.  67). 

Sec.  3278.  It  shall  be  lawful  for  any  revenue  officer  and  b°J£ „pe|round 
any  person  acting  in  his  aid,  to  break  up  the  ground  on  or  walls  m  order 
any  part  of  a  distillery,  or  premises  of  a  distiller  or  recti- 
fier, or  any  ground  adjoining  or  near  to  such  distillery  or 
premises,  or  any  wall  or  partition  thereof,  or  belonging 
thereto,  or  other  place,  to  search  for  any  pipe,  cock,  pri- 
vate conveyance,  or  utensil;  and,  upon  finding  any  such 
pipe  or  conveyance  leading  therefrom  or  thereto,  to 
break  up  any  ground,"  house,  wall,  or  other  place  through 
or  into  which  such  pipe  or  other  conveyance  leads,  and 
to  break  or  cut  away  such  pipe  or  other  conveyance,  and 
turn  any  cock,  or  to  examine  whether  such  pipe  or  other 


172  DISTILLED   SPIRITS. 

conveyance  conveys  or  conceals  any  mash,  wort,  or  beer, 
or  other  liquor,  which  may  be  used  for  the  distillation  of 
low-wines  or  spirits,  from  the  sight  or  view  of  the  officer, 
so  as  to  prevent  or  hinder  him  from  taking  a  true  account 
thereof. 
signs  to  bo  put  sEc.  3279.  Every  person  engaged  in  distilling  or 
and  y  rectifier^  rectifying  spirits,  and  every  wholesale  liquor-dealer,  shall 
{ectlty  for  ncs"  place  and  keep  conspicuously  on  the  outside  of  the  place 
of  such  business  a  sign,  exhibiting  in  plain  and  legible 
letters,  not  less  than  three  inches  in  length,  painted  in 
oil-colors  or  gilded,  and  of  a  proper  and  proportionate 
width,  the  name  or  firm  of  the  distiller,  rectifier,  or 
wholesale  dealer,  with  the  words :  "Registered  distillery, " 
"rectifier  of  spirits, "  or  "wholesale  liquor  dealer, "  as  the 
case  may  be.  Every  person  who  violates  the  foregoing 
provision  by  negligence  or  refusal,  or  otherwise,  shall 
pay  a  penalty  of  five  hundred  dollars. 
Penalty  for  us-  And  every  person,  other  than  a  rectifier  or  wholesale 
etc.  ase  s  liquor-dealer  who  has  paid  the  special  tax,  or  a  distiller 
who  has  given  bond  as  required  by  law,  who  puts  up  or 
keeps  up  the  sign  required  by  this  section,  or  any  sign 
indicating  that  he  may  lawfully  carry  on  the  business  of 
a  distiller,  rectifier,  or  wholesale  liquor-dealer,  shall  for- 
feit and  pay  one  thousand  dollars,  and  shall  be  imprisoned 
not  less  than  one  month  nor  more  than  six  months.  And 
every  person  who  works  in  any  distillery,  rectifying 
establishment,  or  wholesale  liquor-store,  on  which  no 
sign  is  placed  and  kept,  as  hereinbefore  provided;  and 
every  person  who  knowingly  receives  at,  carries  or  con- 
veys any  distilled  spirits  to  or  from,  any  such  distillery, 
rectifying  establishment,  warehouse,  or  store,  or  who 
knowingly  carries  and  delivers  any  grain,  molasses,  or 
other  raw  material  to  any  distillery  on  which  such  sign 
is  not  placed  and  kept,  shall  forfeit  all  horses,  carts,  drays, 
wagons,  or  other  vehicle  or  animal  used  in  carrying  or 
conveying  such  property  aforesaid,  and  shall  be  fined  not 
less  than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  or  be  imprisoned  not  less  than  one  month  nor 
more  than  six  months. 

Insufficiency  of  indictment  under  section  3279.  (Terry  v. 
U.  S.,  120  Fed.  Rep.,  483.) 

U.  S.  v.  Flynn  (15  Blatchf.  (IT.  S.)  302.)  But  this  does  not 
apply  to  one  who  merely  works  in  putting  up  a  building  in 
which  an  illicit  still  is  set  up.  (U.  S.  v.  Burgess,  33  Fed.  Rep., 
833.) 

Wholesale  liquor  dealer's  sign.     (T.  D.  874,  945.) 

Distillers'    sign. — Display   of   sign   reading    " Distilling 

Company,"  except  by  qualified  distiller,  is  illegal,  unless 
followed  by  words  removing  the  presumption  that  the  dealer 
is  a  distiller.     (T.  D.  1432.) 

The  sign  "Practical  distiller,"  used  by  a  wholesale  dealer 
and  rectifier  who  is  not  an  authorized  distiller  is  in  violation 
of  seel  ion  3279,  Revised  Statutes.     (T.  D.  19331,  1898.) 

t,,T?.if,,,i!,enn  1>,Mt     Sec.  3280.  It  shall  not  be  lawful  for  any  distiller  to  com- 

Di       umii    the  mence  or  to  continue  the  business  of  distilling,  until  fie  fias 

mplied  given  the  bond  required  by  law,  and  complied  with  the 


DISTILLED    SPIRITS.  173 

provisions  of  law  relating  to  the  registration  and  survey 
of  distilleries,  and  the  arrangement  and  construction  of 
distilleries  and  the  premises  connected  therewith;  nor 
shall  it  be  lawful  for  any  person  to  engage  in  the  business 
of  distilling  on  any  premises  distant  less  than  six  hundred.  ^fetming  with- 

,,       ,    .  ,?       ,   ,.    J    1  .  -.   f  . .  „    .  m  000  feet  of  rec- 

ieet  in  a  direct  line  Irom  any  premises  used  lor  rectifying;  tifymg  estabiish- 
nor  shall  the  processes  of  distillation  and  rectification  both  ment  Prohibited- 
be  carried  on  within  the  distance  of  six  hundred  feet  in  a 
direct  line. 

Section  3266,  page  166. 

[Sec.  3281.]    [Sec.  16,  act  of  Feb.  8,   1875  (18  #^.,  JfgggJ  eg; 
307).]     That  any  person  who  shall  carry  on  the  business  carrying  on  busi- 
of  a  rectifier,  wholesale  liquor-dealer,  retail  liquor-dealer,  mentWiof°^pedaI 
wholesale  dealer  in  malt-liquors,   retail  dealer  in  malt tax- 
liquors,  or  manufacturer  of  stills,  without  having  paid 
the  special  tax  as  required  by  law,  or  who  shall  cany  on 
the  business  of  a  distiller  without  having  given  bond  as  in?feonU%u£fne£ 
required  by  law,  or  who  shall  engage  in  or  carry  on  the  without    giving 
business  of  a  distiller  with  intent  to  defraud  the  United tent todeteudf" 
States  of  the  tax  on  the  spirits  distilled  by  him,  or  any 
part  thereof,  shall,  for  every  such  offense,  be  fined  not  less 
than  one  hundred  dollars  nor  more  than  five  thousand    ?^^td  im" 
dollars  and  imprisoned  not  less  than  thirty  days  nor 
more  than  two  years. 

And  all  distilled  spirits  or  wines,  and  all  stills  or  other  Forfeiture- 
apparatus,  fit  or  intended  to  be  used  for  the  distillation  or 
rectification  of  spirits,  or  for  the  compounding  of  liquors, 
owned  by  such  person,  wherever  found,  and  all  distilled 
spirits  or  wines  and  personal  property  found  in  the  distil- 
lery or  rectifying  establishment,  or  in  any  building,  room, 
yard,  or  inclosure  connected  therewith,  and  used  with  or 
constituting  a  part  of  the  premises;  and  all  the  right,  title, 
and  interest  of  such  person  in  the  lot  or  tract  of  land  on 
which  such  distillery  is  situated,  and  all  right,  title,  and 
interest  therein  of  every  person  who  knowingly  has  suf- 
fered or  permitted  the  business  of  a  distiller  to  be  there 
carried  on,  or  has  connived  at  the  same;  and  all  personal 
property  owned  by  or  in  possession  of  any  person  who  has 
permitted  or  suffered  an}?-  building,  yard,  or  inclosure,  or 
any  part  thereof,  to  be  used  for  purposes  of  ingress  or 
egress  to  or  from  such  distillery  which  shall  be  found  in 
any  such  building,  yard,  or  enclosure,  and  all  the  right, 
title,  and  interest  of  every  person  in  any  premises  used 
for  ingress  or  egress  to  or  from  such  distillery,  who  has 
knowingly  suffered  or  permitted  such  premises  to  be  used 
for  such  ingress  or  egress,  shall  be  forfeited  to  the  United 
States. 

See  sections  3242,  and  3257. 

See  references  under  section  3453,  p.  359. 

Penalty  for  omitting  to  do  things  required  where  no  punish- 
ment is  imposed  by  any  other  section.     (Sec.  3456,  p.  361.) 

As  to  rectifiers  carrying  on  business  with  intent  to  defraud. 
(Sec.  3317,  p.  210.) 

As  to  sales  made  to  evade  tax.     (Sec.  3454,  p.  360.) 


174  DISTILLED   SPIRITS. 


The  provision  declaring  forfeiture  of  real  estate  not  unconsti- 
tutional. (United  States  v.  Distillery  on  West  Front  Street,  11 
Int.  Rev.  Rec,  174.) 

Stock  of  W.  L.  D.  not  forfeitable  by  reason  of  nonpayment  of 
special  tax.     (2000  Bottles  of  Liquors,  5  Ben.,  265.) 

Forfeiture  dates  back. — Forfeiture  dates  back  to  the  time  the 
offense  was  committed,  and  operates  at  that  time  as  a  statutory 
transfer  of  the  right  of  property  to  the  Government.  (United 
States?-.  Fifty-six  Barrels  of  Whisky,  1  Abb.,  U.  S.,  93,  4  Int. 
Rev.  Rec,  106;  United  States  v.  One  Cask,  etc.,  10  ibid.,  93; 
Henderson's  Distilled  Spirits,  14  Wall.,  44;  15  Int.  Rev.  Rec, 
119;  United  States  v.  McCoy's  Distillery,  21  ibid.,  165.) 

The  title  of  the  Government  to  the  property  infected  with 
fraud  vests  from  the  time  of  its  commission  and  the  taint  of 
fraud  inheres  in  it  even  in  the  possession  of  an  innocent  pur- 
chaser. (United  States  v.  Eight  Hundred  Caddies  of  Tobacco, 
2  Bond,  305.) 

Where  an  act  is  committed  by  the  owner  of  a  distillery  by 
which  a  forfeiture  thereof  is  incurred  under  the  revenue  laws, 
and  subsequently  the  owner  conveys  the  property  to  an  innocent 
purchaser  without  notice  of  the  commission  of  the  act,  the  prop- 
erty remains  still  subject  to  the  forfeiture  incurred.  The  con- 
veyance, in  such  case,  passes  no  title  as  against  the  United  States. 
(16  Op.  Atty.  Gen.,  41.) 

Forfeiture  does  not  attach  to  spirits  acquired  after  the  offense. 
(United  States  v.  One  Water  Cask,  10  Int.  Rev.  Rec,  93.) 

Forfeiture  denounced  against  distillers  for  carrying  on  busi- 
ness without  having  given  bond,  or  with  intent  to  defraud,  and 
omission  to  keep  books.     (Sec.  3305,  p.  201.) 

Extent  of  forfeiture. — All  personal  property  used  in  the  unlaw- 
ful business  or  in  any  other  business  openly  carried  on  upon  the 
premises  is  forfeited,  even  if  the  owner  had  no  participation  in 
or  knowledge  of  the  unlawful  acts. 

The  forfeiture  of  lands  and  buildings  does  not  reach  beyond 
the  right,  title,  and  interest  of  the  distiller,  or  of  such  other  per- 
sons as  have  consented  to  the  carrying  on  of  the  business  of  a  dis- 
tiller upon  the  premises.  (United  States  v.  Stowell  (1890),  133 
U.  S.,  1;  36  Int.  Rev.  Rec,  30.) 

An  engine  is  part  of  a  house,  and  goes  with  it.  (Walker  v. 
Sherman,  20  Wend.,  635.) 

As  to  the  boiler,  engine,  pump,  vats,  and  tanks.  (United 
States  v.  Stowell,  133  U.  S.,  1;  36  Int.  Rev.  Rec,  30.) 

Amount  of  real  estate  liable  to  forfeiture.  (United  States  v. 
Piece  of  Land,  1  Sawyer,  84;  11  Int.  Rev.  Rec,  126.) 

Nothing  can  be  plainer  in  legal  decision  than  the  proposition 
that  the  offense  therein  defined  is  attached  primarily  to  the 
distillery  and  the  real  and  personal  property  used  in  connec- 
tion with  the  same,  without  any  regard  whatsoever  to  the  per- 
sonal misconduct  or  responsibility  of  the  owner,  beyond  what 
necessarily  arises  from  the  fact  that  he  leased  the  property  to 
the  distiller  and  suffered  it  to  be  used  and  occupied  by  the 
lessee  as  a  distillery.  (Dobbins's  Distillery  v.  United  States, 
96  U.  S.,  395;  24  Int.  Rev.  Rec,  21;  U.  S.  v.  Blair,  3  Int.  Rev. 
Rec,  67;  Fed.  ('as.  14,  607.) 

A  mortgage  given  by  the  distiller  before  the  unlawful  acts  were 
committed  is  good  as  against  the  United  States  if  the  business 
was  not  carried  on  by  the  morgagee's  permission  or  connivance. 
(U.  S.  v.  Stowell,  133  U.  S.,  1;  36  Int.  Rev.  Rec,  30.) 

Forfeiture  of  distillery.     (T.'  D.,  589.) 

Distillery  liable  to  forfeiture  without  regard  to  the  culpa- 
bility of  the  owner  of  the  property.  Mechanics'  liens  can  not 
be  enforced  in  State  courts  after  seizure  by  the  marshal  in  for- 
feiture proceedings,  (ileidritter  v.  Elizabeth  Oil-Cloth  Co. 
(1881),  6  bed.  Rep.,  138. 

The  pri:  of  law  upon  this  subject  are  clearly  and  fully 

ced  in  Distiller}  v.  United  States  (96  U.  S.,  395),  and 
es  cited.  (United  States  v.  Two  Bay  Mules  (1888),  36  Fed. 
Rep.,  84.) 


DISTILLED   SPIKITS.  175 

Operation  of  forfeitures  against  innocent  persons.  (United 
States  v.  One  Barrel  Whisky,  4  Int.  Rev.  Rec.,  146;  United 
States  v  One  Still,  5  Blatch.,  403;  5  Int.  Rev.  Rec.,  189;  United 
States  v.  Twenty-one  Barrels  High  Wines,  6  ibid.,  213;  Distilled 
Spirits,  etc.  (mortgage),  2  Ben.,  486;  8  Int.  Rev.  Rec,  81;  United 
States  v.  Whisky,  11  ibid.,  109;  United  States  v.  Distillery  at 
Spring  Valley  (leading  case),  11  Blatch.,  255;  18  Int.  Rev.  Rec, 
59;  Dobbins  v.  United  States,  6  Otto,  395;  24  Int.  Rev.  Rec, 
21;  United  States  v.  One  Copper  Still  (mortgage),  ibid.,  317- 
8  Biss.,  270;  Thacher's  Distilled  Spirits,  103  U.  S.  (13  Otto), 
679;  27  Int.  Rev.  Rec,  144;  U.  S.  v.  Three  Copper  Stills,  47  Fed. 
Rep.,  495;  U.  S.  v.  220  Patented  Machines  (Jacobs),  99  Fed 
Rep.,  495;  T.    D.,  54.) 

As  to  person  allowing  ingress  or  egress  over  premises  to  or  from 
a  distillery.     (Gregory  v.  United  States,  17  Blatch.,  325;    26  Int 
Rev.  Rec,  27.) 

Principal  liable  for  acts  of  agent. — The  acts  of  the  agent 
imputed  to  the  principal  so  far  as  they  work  the  forfeiture  of 
propertv  used  for  unlawful  purposes.  (Bush  v.  United  States, 
31  Int.  "Rev.  Rec,  305;  24  Fed.  Rep.,  917.) 

Liability  of  employer  for  acts  of  servant.  (United  States  v. 
Buchanan,  28  Int.  Rev.  Rec,  51.) 

Presumption  and  burden  of  proof.  (One  Hundred  and 
Ninety-nine  Barrels  of  Whiskv  v.  United  States,  94  U.  S.,  86; 
United  States  v.  One  Still,  5  Int.  Rev.  Rec,  189;  United  States 
v.  Mathoit,  1  Sawyer,  142;  11  Int.  Rev.  Rec,  158.) 

The  burden  of  establishing  the  right  of  forfeiture  is  on  the 
Government.  Absence  of  proof.  (United  States  v.  One  Engine 
and  Belting,  etc  (1910),  C.  C.  A.;  179  Fed.  Rep.,  698.) 

Intent  to  defraud.  (U.  S.  v.  Simmons,  96  U.  S.,  360;  24  Int. 
Rev.  Rec,  347.) 

Effect  of  acquittal. — If  a  person  is  tried  for  the  same  offense 
for  which  distillery  is  seized  and  acquitted,  it  is  a  bar  to  a  suit 
in  rem  against  the  distillery.  (Coffey  v.  United  States,  116 
U.  S.;  436;  32  Int.  Rev.  Rec,  38.) 

Evidence.  (Quantity  of  distilled  spirits,  9  Int.  Rev.  Rec,  9; 
United  States  v.  Blaisdell,  ibid.,  82;  United  States  v.  Staton,  25 
ibid.,  10;  United  States  v.  Dobbs,  15  ibid.,  9.) 

The  abandonment  by  the  Government  of  an  action  for  forfei- 
ture does  not  affect  its  lien  on  the  seized  property  for  unpaid 
laxes.     (Aiken  r.  Bean,  8  Biss.,  83;  23  Int.  Rev.  Rec,  351.) 

[Sec.  3281a.]     [Sec.  9,  act  of  Mar.  1 ,  1879  (20  Stat. ,  327)}.  sJf%^1  JfT: 
Where  any  marshal  or  deputy  marshal  of  the   United atingmicit  distu- 
States  within  the  district  for  which  he  shall  be  appointed lery" 
shall  find  any  persons  or  person  in  the  act  of  operating  an 
illicit  distillery,  it  shall  be  lawful  for  such   marshal  or 
deputy  marshal  to  arrest  such  person  or  persons,  and  take 
him  or  them  forthwith  before  some  judicial  officer  named 
in  section  one  thousand   and  fourteen  of  the  Revised 
Statutes,  who  may  reside  in  the  county  of  arrest  or  if 
none,  in  that  nearest  to  the  place  of  arrest,  to  be  dealt 
with  according  to  the  provisions  of  sections  ten  hundred 
and  fourteen,  ten  hundred  and  fifteen,  ten  hundred  and 
sixteen  of  the  said  Revised  Statutes. 

Section  1014,  Appendix,  page  389. 

Warrants  of  arrest  for  violations  of  internal-revenue  laws,  page 
402.     (XII  Comp.  Dec,  803;   IV  ibid.,  338,  340.) 

There  is  no  repugnance  between  this  section  and  section  19, 
act  of  March  28,  1896,  page  402.     (16  Comp.  Dec,  669.) 

Sec.  3282  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  (20    Mash,  wort, 
Stat,  327)].     No  mash,  wort,  or  wash,;  fit  for  distillation  and  vincgar- 
or  for  the  production  of  spirits  or  alcohol,  shall  be  made  or 


176  DISTILLED   SPIRITS. 

fermented  in  any  building  or  on  any  premises  other  than 
a  distillery  duly  authorized  according  to  law;  and  no 
mash,  wort,  or  wash  so  made  and  fermented  shall  be  sold 
or  removed  from  any  distillery  before  being  distilled; 
and  no  person,  other  than  an  authorized  distiller,  shall, 
by  distillation,  or  by  any  other  process,  separate  the  alco- 
holic spirits  from  any  fermented  mash,  wort,  or  wash; 
and  no  person  shall  use  spirits  or  alcohol,  *  *  *  in 
manufacturing  vinegar  or  any  other  article,  or  in  any 
process  of  manufacture  whatever,  unless  the  spirits  or 
alcohol  so  used  shall  have  been  produced  in  an  author- 
Penaity.  ized  distillery  and  the  tax  thereon  paid.  Every  person 
who  violates  any  provision  of  this  section  shall  be  fined 
for  each  offense  not  less  than  five  hundred  dollars  nor 
more  than  five  thousand  dollars,  and  be  imprisoned  not 
less  than  six  months  nor  more  than  two  years:  Provided 
further,  That  nothing  in  this  section  shall  be  construed  to 
apply  to  fermented  liquors,  or  to  fermented  liquids  used 
for  the  manufacture  of  vinegar  exclusively.     *     *     * 

But  no  worm,  goose-neck,  pipe,  conductor,  or  contrirance 
of  any  description  whatsoever  whereby  vapor  might  in  any 
manner  be  conveyed  away  and  converted  into  distilled  s pints, 
shall  be  used  or  employed  or  be  fastened  to  or  connected  with, 
any  vaporizing  apparatus  used  for  the  manufacture  of  vin- 
egar; nor  shall  any  worm  be  permitted  on  or  near  the  prem- 
ises where  such  vaporizing  process  is  carried  on. 
vinegar     fac-      Nor  shall  any  vinegar  factory ,  for  the  manufacture  ofvin- 
withiifuv)  feet  of  egar  as  aforesaid,  be  permitted  within  six  hundred  feet  of  any 
a  distillery.        distillery  or  rectifying  house.     But  it  shall  be  lawful  for 
manufacturers  of  vinegar  to  separate,  by  a  vaporizing  proc- 
ess, the  alcoholic  property  from  the  mash  produced  by  them, 
and  condense  the  same  by  introducing  it  into  the  water  or 
other  liquid  used  in  making  vinegar. 
n,-Yrn9gaX>r  ™^t      No  person,  however,  shall  remove,  or  cause  to  be  removed, 

u\  er    z    per   teat  a  .'  .      /  /  .  .  / 

of  alcohol.  Jrom  any  vinegar  jactory  or  place  where  vinegar  is  made, 
any  vinegar  or  other  fluid  or  material  containing  a  greater 
proportion  than  two  per  centum  of  proof  spirits.  Any 
violation  of  this  provision  shall  incur  a  forfeiture  of  the  vin- 
egar, fluid,  or  material  containing  such  proof  spirits,  and 
shall  subject  the  person  or  persons  guilty  of  removing  the 
same  to  the  punishment  provided  for  any  violation  of  this 
section. 

3278^  ^cabte 7'  J^n^'  a^  ^ne  Provisions  of  sections  thirty-two  hundred  and 
seventy-six,  thirty-two  hundred  and  seventy-seven,  and  thirty- 
two  hundred  and  seventy-eight  of  the  Revised  Statutes  of  the 
( 'n  ited  States  are  hereby  extended  and  made  applicable  to  all 
premises  whereon  vinegar  is  manufactured ,  to  all  manufac- 
turers of  vinegar  and  their  workmen  or  other  persons  em- 
ployed by  them. 
vinegar     fac-     Act  of  June  14,  1879  (21  Stat.,  20).     That  any  vinegar 

tones  before  Mar.   /•      ,  r         .-,  r     .  r       •  .    it  -l     i  n 

i,is79.  jactory  jor  the  manufacture   of  vinegar,   established  and 

operated  as  a  vinegar  factory  prior  to  March  first,  eighteen 
li  a nd red  and  seventy-nine,  may  be  operated  for  the  manu- 
facture of  vinegar  by  the  use  of  alcoholic  vapor  within  such 


DISTILLED   SPIRITS.  177 

distance  less  than  six  hundred  feet  of  any  distillery  or  recti- 
fying house  under  such  regulations  as  the  Commissioner  of 
Internal  Revenue  may  prescribe  with  the  approval  of  the 
Secretary  of  the  Treasury. 

Manufacture  of  vinegar  by  the  employment  of  alcoholic  vapor. 
(25  Int.  Rev.  Rec,  157;  Regulations  No.  7  revised,  p.  226.) 

United  States  v.  Prussing  (2  Biss.,  344);  United  States  v.  Dis- 
tillery (23  Int.  Rev.  Rec,  147). 

Rectifiers  making  a  wine  mash.     (T.  D.  1437,   Cir.  No.  731.) 

On  and  after  September  1,  1909,  rectifiers  prohibited  from 
making  a  so-called  wine  mash  and  using  the  product  thereof  in  the 
production  of  compound  liquors. — Provisions  of  Internal  Revenue 
Circular  731  (suspended  by  Mimeograph  Circular  599)  reestab- 
lished.    (T.  D.  1528,  August  7,  1909.) 

Postponement  until  October  1,  1909,  of  operations  of  regula- 
tions prohibiting  rectifiers  from  making  a  so-called  wine  mash 
and  using  the  product  thereof  in  the  production  of  compound 
liquors— Modification  of  T.  D.  1528.  (T.  D.  1537,  August  31, 
1909.) 

Wine  mash — Disposition  of  product  on  hand — Enforcement  of 
Circular  No.  731.     (T.  D.  1551,  Oct.  13,  1909.) 

Defining  the  formula  which  may  be  used  in  the  manufacture 
of  a  mash  not  fit  for  distillation  within  the  meaning  of  section 
3282.     (T.  D.  1593.) 

Production  of  so-called  "  pomace  wine."     (T.  D.  1645.) 

Sec.  3283.  No  malt,  corn,  grain,  or  other  material  shall d/JtifTKJ  h" 
be  mashed,  nor  any  mash,  wort,  or  beer  brewed  or  made,  gg^S1  Jkjpj  J 
nor  any  still  used  by  a  distiller,  at  any  time  between  the  in.  of  Monday. 
hour  of  eleven  in  the  afternoon  of  any  Saturday  and  the 
hour  of  one  in  the  forenoon  of  the  next  succeeding  Monday ; 
and  every  person  who  violates  the  provisions  of  this  sec-    PeDalty- 
tion  shall  be  liable  to  a  penalty  of  one  thousand  dollars. 

Relative  to  use  of  yeast  rake  on  Sunday.  (29  Int.  Rev.  Rec, 
137.) 

Relative  to  the  use  of  pumps  on  Sunday.     (30  Int.  Rev.  Rec, 

45.) 

Sec.  32S4.  Every  distiller  or  person  employed  in  anyriaYsJnrfm^g; 
distillery  who,  in  the  absence  of  the  storekeeper,  or  per- spirits  in  absence 
son  designated  to  act  as  storekeeper,  uses,  or  causes  or ofstoreli 
permits  to  be  used,  any  material  for  the  purpose  of  making 
mash,  wort,  or  beer,  or  for  the  production  of  spirits,  or 
removes   any   spirit,   shall  forfeit   and  pay   double   the 
amount  of  taxes  on  the  spirits  so  produced,  distilled,  or      ena  y' 
removed,  and  in  addition  thereto  be  liable  to  a  penalty  of 
one  thousand  dollars. 

Sec.  3285  [as  amended  by  sec.  3,  act  of  May  28,  1880 
(21  Stat.,  U5)  and  act  of  June  22,  1910  (36  Stat.,  590).}    ^  t 
Every  fermenting  tub  shall  be  emptied  at  or  before  the  end  of  mfnTing^ubs.  er' 
the  fermenting  period;    no  fermenting  tub  in  a  sweet-mash 
distillery  shall  be  filled  oftener  than  once  in  seventy-two 
hours,  nor  in  a  sour-mash  distillery  oftener  than  once  in 
ninety-six  hours,  nor  in  a  rum  distillery  oftener  than  once  in 
one  hundred  and  forty-four  hours,  nor  in  a  distillery  where 
the  filtration-aeration  process  is  employed,  that  is,  where 
the  mash  after  it  leaves  the  mash  tub  is  passed  through  a  fil- 
tering machine,  before  it  is  run  into  the  fermenting  tub,  and    Filtration_aera_ 
only  the  filtered  liquor  passes  into  the  fermenting  tub,  and  tion  process. 

72170°— 11 12 


178  DISTILIiED   SPIRITS. 

the  approval  of  the  Commissioner  of  Internal  Revenue  being 
secured,  ojtener  than  once  in  twenty-jour  hours.  The  jjro- 
visions  hereof  relating  to  filtration-aeration  process  shall 
apply  only  to  sweet-mash  distilleries. 

Circular  No.  739  (T.  D.  1641)  relative  to  filtration-aeration 
process. 

w£errawciena!sing  Sec-  3286  las  amended  by  sec.  5,  act  of  Mar.  1,  1879 
worm'tubs, etc.  (20  Stat.,  327).]  Whenever  any  officer  requires  the  water 
contained  in  any  worm  tub  in  a  distilleiy,  at  any  time 
when  the  still  is  not  at  work,  to  be  drawn  off,  and  the 
tub  and  worm  cleansed,  the  water  shall  forthwith  be 
drawn  off,  and  the  tub  and  worm  cleansed  by  the  distiller, 
or  his  workmen,  accordingly ;  and  the  water  shall  be  kept 
and  continued  out  of  such  worm  tub  for  the  period  of 
two  hours,  or  until  the  officer  has  finished  his  examina- 
Penaity.  ^on  thereof.     For  any  refusal  or  neglect  to  comply  with 

any  provision  of  this  section,  the  distiller  shall  forfeit 
the  sum  of  not  exceeding  one  thousand  dollars;  and  it 
shall  be  lawful  for  the  officer  to  draw  off  such  water,  or 
any  portion  of  it,  and  to  keep  the  same  drawn  off  for  so 
long  a  time  as  he  shall  think  necessary. 

Section  3152,  page  G7,  gives  revenue  agents  the  authority  here 
conferred  on  officers. 

spi^smtoVwar°e-f  Sec-  3287  las  amended  by  act  of  Mar.  1,  1879;  sec.  6, 
house  a.ui  gaug-  act  of  May  28,  1880  (21  Stat.,  145),  act  of  Feb.  21,  1899 
^andstampmg  ^Q  ^^  ^^  ^  ad  ^  Morel,  2,  1911  (36  Stat.  1014).] 

All  distilled  spirits  shall  be  drawn  from  the  loeeiving 
cisterns  into  casks  or  packages,  each  of  not  less  capacity 
than  ten  gallons  wine  measure,  and  shall  thereupon  be 
gauged,  proved,  and  marked  by  an  internal-revenue 
gauger,  who  shall  cut  on  the  cask  or  package  containing 
such  spirits,  in  a  manner  to  be  prescribed  by  the  Com- 
missioner of  Internal  Revenue,  the  quantity  in  wine 
gallons  and  in  proof  gallons  of  the  contents  of  such  casks 
or  packages,  and  the  particular  name  of  such  distilled 
spirits  as  known  to  the  trade,  that  is  to  say,  high  wines, 
alcohol,  or  spirits,  as  the  case  may  be,  shall  be  marked 
or  branded  on  the  head  of  such  cask  or  package  in  letters 
of  not  less  than  one  inch  in  length;  and  the  spirits  shall 
be  immediately  removed  into  the  distillery  warehouse, 
and  the  gauger  shall,  in  the  presence  of  the  storekeeper  of 
the  warehouse,  place  upon  the  head  of  the  cask  or  package 
an  engraved  stamp,  which,  shall  be  signed  by  the  collector 
of  the  district  and  the  storekeeper  and  gauger;  and  shall 
have  written  thereon  the  number  of  proof  gallons  con- 
tained therein,  the  name  of  the  distiller,  the  date  of  the 
receipt  in  the  warehouse,  and  the  serial  number  of  each 
cask  or  package,  in  progressive  order,  as  the  same  are 
received  from  the  distilleiy.  Such  serial  number  for 
ev[e]ry  distillery  shall  be  in  a  regidar  sequence  of  the 
serial  number  thereof,  beginning  with  number  one  (No.  1) 
with  the  first  cask  or  package  deposited  therein  after 
July  twentieth.,  eighteen  hundred  and  sixty-eight,  and  no 


DISTILLED    SPIRITS.  179 

two  or  more  casks  or  packages  warehoused  at  the  same 
distillery  shall  be  marked  with  the  same  number.  The 
said  stamp  shall  be  as  follows: 

"  Distillery- warehouse  stamp  No.  — .     Issued  by ,  col- 
lector,   district,  State  of  ■ ,  distillery  warehouse  of 

,  18 — ,  Cask  No.  — ;  contents gallons  proof-spirits. 


'Attest: 


'United  States  Storekeeper. 


United  States  Gauger." 


Act  of  Feb.  21, 


Transferor  alco- 
pipes. 


Provided,  however,  That  upon  the  application  of  the  dis- 1899. 
tiller,  and  under  such  regulations  as  the  Commissioner  of  In- 
ternal Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  prescribe,  distilled  spirits  may  be  drawn  into    rt  , 

7        "    7     *'  -i  •    ■     •         .  ±   77 •  Packages    con- 

wooden  packages,  each  containing  two  or  more  metallic  cans,  taming   two   or 

which  cans  shall  have  each  a  capacity  of  not  less  than  five^^f    metaUlc 

gallons,  wine  measure,  such  packages  to  be  filed  and  used 

only  for  exportation  from  the    United  States.     And  there 

shall  be  charged  for  each  of  said  packages  or  cases  for  the 

expense  of  providing  and  affixing  stamps,  five  cents  instead  0f°  STeents  for 

often  cents  as  now  required  by  law.  stamps. 

Provided  further,  That  alcohol  or  high-proof  spirits  with-  lgft*°fMarch2. 
drawn  free  of  tax  for  the  use  of  the  United  States,  as  author- 
ized by  section  thirty-four  hundred  and  sixty-four,  Revised 
Statutes,  may  be  drawn  off  for  transfer  by  pipes  direct  from  hJrbay 
the  receiving  cisterns  in  the  cistern  room  of  any  distillery  to 
closed  metal  storage  tanks  situated  in  the  distillery  bonded 
warehouse  and  transferred  from  such  storage  tanks  to  tanks 
or  tank  cars  for  shipment,  upon  the  execution  of  such  bonds 
and  under  such  regulations  as  the  Secretary  of  the  Treasury 
may  prescribe. 

Regulations  concerning  the  exportation  of  distilled  spirits  in 
inclosed  metallic  cans.  (T.  D.  20837;  Reg.  No.  29,  revised:T.  D. 
905.) 

Metal  barrels  or  drums  for  high  proof  spirits  permissible. 
(Cir.  No.  678;  T.  D.  996.) 

The  deposit  of  the  spirits  in  the  warehouse  was  solely  for  the 
benefit  of  the  distiller.  The  Government  assumed  no  responsi- 
bility to  him  for  their  safe-keeping.  (United  States  v.  Witten, 
143  U.  S.,_76;  38  Int.  Rev.  Rec,  46.) 

Injunction  to  restrain  the  enforcement  of  an  order  requiring 
product  known  to  the  trade  as  "Spirits"  to  be  branded  as 
"Alcohol."  (Union  Distilling  Co.  v.  Bettman,  181  Fed.  Rep., 
419.) 

Regulations  for  marking  and  branding  distilled  spirits.  (Cir. 
No.  723,  T.  D.  1352;  Cir.  No.  726,  T.  D.  1375,  June  10,  1908;  Cir. 
No.  728,  T.  D.  1390,  July  13,  1908;  Mim.  Cir.  No.  573,  T.  D. 
1404,  Aug.  6,  1908;  Cir.  No.  737,  Apr.  23,  1910,  T.  D.  1620;  and 
T.  D.  1624;  modified  June  13,  1910;  Cir.  No.  738;  T.  D.  1638.) 

Section  3287  makes  the  characteristics  of  the  marking  to  be 
placed  on  the  cask  or  package  a  matter  of  administrative  dis- 
cretion with  the  Commissioner,  subject  to  the  approval  of  the 
Secretarv  of  the  Treasury.  Effect  of  restraining  order.  (27  Op. 
Atty.  Gen.,  43.) 

Suit  to  enjoin  collector  and  internal-revenue  gaugers  from 
marking  rectified  spirits  "imitation  whisky,"  acting  under 
instructions  in  Internal-Revenue  Circular  723  of  May  5,  1908, 
issued  in  conformity  with  the  direction  of  the  President  to  the 
Secretary  of  Agriculture  for  the  enforcement  of  the  pure-food 


180  DISTILLED    SPIRITS. 

act. — Decision  of  Judge  Thompson  sustained  the  Government. — 
Application  for  rehearing  denied.  (Union  Distilling  Co.  v.  Bett- 
man.)    (T.  D.  1410.) 

Suit  to  enjoin  collector  and  internal-revenue  gaugers  from 
marking  rectified  spirits  "imitation  whisky." — Decision  of 
Judge  Humphrey  denying  application  for  preliminary  injunc- 
tion. Woolner  v.  Rennick,  170  Fed.  Rep.,  662;  T.  D.  1425.) 
See  alsoT.  D.  1427,  Western  Distilleries  v.  Collr.  Muenter. 

Marking  of  distilled  spirits.     (27  Op.  Atty.  Gen.,  47.) 

Relative  to  marking  distilled  spirits  produced  from  molasses 
at  distilleries  and  rectifying  houses  pending  litigation  to  test 
the  decision  of  President  Taft,  of  December  27,  1909,  as  to  "  What 
is  whisky."     (Cir.  No.  740;  T.  D.  1647.) 

Regulations  under  the  last  proviso  of  Section  3287,  relative 
to  the  storage,  removal  and  shipment  in  tanks  and  tank  cars  of 
alcohol  free  of  tax  for  use  of  the  United  States.  (Cir.  No.  741, 
T.  D.  1688.) 

itsTnctptodremain     Sec.  3288.  No  distilled  spirits  on  which  the  tax  has 
on  distillery  Deen  paid  shall  be  stored  or  allowed  to  remain  on  any  dis- 
tillery premises,  under  the  penalty  of  a  forefeiture  of  all 
spirits  so  found. 

Delay  in  affixing  stamps  indicating  payment  of  tax  on  spirits 
no  bar  to  forfeiture.  (Letter  to  Collector  Powers,  May  22,  1896; 
42  Int.  Rev.  Rec,  241.) 

un^ampedVek-     Sec-  32.8?  •  &&  distilled  spirits  found  in  any  cask  or  pack- 
ages, age  containingfive  gallons  or  more,  without  having  thereon 

each  mark  and  stamp  required  therefor  by  law,  shall  be 

forfeited  to  the  United  States. 

Sections  3299,  page  198,  and  3323,  page  214. 

Rectified  spirits  included  in  term  distilled  spirits."  (Boyd 
v.  United  States,  14  Blatch.,  317.) 

See  on  this  section  United  States  v.  One  Rectifying  Establish- 
ment (11  Int.  Rev.  Rec,  45);  United  States  v.  32  Barrels  Dis- 
tilled Spirits  (5  Fed.  Rep.,  188);  3  packages  Distilled  Spirits,  14 
Fed.  Rep.,  569;  U.  S.  v.  14  packages,  66  Fed.  Rep.,  984;  U.  S. 
v.  One  package,  88  Fed.  Rep.,  856.) 

Whenever  an  examination  of  a  distiller's  original  package 
shows  an  excess  of  one  proof  gallon  or  upward  over  contents, 
as  shown  by  marks,  brands,  and  stamps,  it  should  be  detained, 
gauged  by  two  gaugers,  and  if  excess  is  found  by  both  to  be  1 
proof  gallon  or  upward,  the  taxable  excess  should  be  estimated. 
by  the  collector  and  reported  for  assessment  against  the  distiller. 
*'  *    *     (Regulations,  No.  7,  p.  189,  25  Int.  Rev.  Rec,  157.) 

Where  the  tax  on  an  excess  is  received  as  above,  in  case  of 
spirits  produced  in  another  district,  the  amount  thus  collected 
will  be  transmitted,  by  certificate  of  deposit  or  otherwise,  to  the 
collector  of  the  district  in  which  the  spirits  were  produced,  and 
the  fact  of  such  remittance  will  be  noted  on  the  report  on  which 
the  excess  appears.  The  collector  receiving  the  tax  so  trans- 
mitted will  report  the  same  on  Form  23.  (Regulations  No.  7, 
p.  190.) 

When  coloring  matter  is  introduced  into  packages  of  whisky, 
double  stamped,  it  is  held  subject  to  forfeiture.  (T.  D.  800, 
June  15,  1904.) 

Burden  of  proof:  Where  spirits  are  found  in  packages  of  more 
than  5  gallons  capacity  without  stamps,  burden  of  proof  is  on 
the  claimant  to  show  that  they  are  tax-paid.  (U.  S.  v.  Sykes, 
58  Fed.  Rep.,  1000.) 

Information  for  forfeiture  under  section  3289  held  bad  on  de- 
murrer. (U.  S.  v.  Three  Packages  of  Distilled  Spirits,  152  Fed. 
Rep.,  580.) 

Forfeiture  is  incurred  if  the  marks  and  stamps  are  not  such  as 
prescribed,  irrespective  of  the  question  of  fraud.  (U.  S.  v.Seven 
Barrels  of  Whisky,  Moise  <k  Co.,  131  Fed.  Rep.,  806.) 


DISTILLED   SPIRITS.  181 

Stamps  without  date  forfeit  spirits.  (United  States  v.  9  pack- 
ages and  United  States  v.  64  packages  (1892),  51  Fed.  Rep.,  191.) 

Proceedings  may  be  had  under  section  3289  without  regard  to 
the  guilt  of  any  particular  person.  (U.  S.  v.  3  Copper  Stills, 
47  Fed.  Rep.,  495.) 

The  law  provides  a  complete  system  of  marks  and  brands  on 
spirits  in  order  to  enable  them  to  be  traced  from  the  distillery 
or  rectifying  establishment  into  the  hands  of  the  consumer  or 
retail  dealer,  and  to  prevent  fraud  on  the  revenue.  (U.  S.  v. 
Bardenheier,  49  Fed.  Rep.,  846;  U.  S.  v.  Three  Pkgs.  Dist. 
Spirits  (Graf  &  Co.,  claimants),  125  Fed.  Rep.,  520 

Tampering  with  spirits  in  stamped  packages.     (T.  D.  997.) 

Covering  stamps  prohibited.     (T.  D.  772.) 

Sec.  3290.  Whenever  any  gauger  employs  any  owner,  i^Sf™^ 
agent,  or  superintendent  of  any  distillery  or  distillery  to  use  brands  or 
warehouse,  or  any  person  in  the  service  of  such  owner,  t?e^™na]ty. du" 
agent,  or  superintendent,  or  any  rectifier  or  wholesale 
liquor-dealer,  or  any  person  in  the  service  of  such  rectifier 
or  wholesale  liquor-dealer,  to  use  his  brands,  or  to  dis- 
charge any  of  the  duties  imposed  upon  him  by  law,  he 
shall,  for  each  ofTense  so  committed,  pay  a  fine  not  ex- 
ceeding one  thousand  dollars,  in  the  discretion  of  the 
court. 

Gauger  can  not  delegate  his  authority  to  any  person.  No  sub- 
stitution authorized.  (United  States  v.  Bittinger,  21  Int.  Rev. 
Rec,  342;  Fed.  Cas.  No.    14599.) 

Regulations  in  regard  to  unofficial  gauging.     (No.  2,  Revised, 

P-  92-) 
Attachment  of  stamps  by  the  successor  of  a  gauging  officer 

who  has  gauged  spirits  without  stamping  the  package  and  com- 
pleting and  marking.     (Regulations  No.  7,  p.  169.) 

Internal-revenue  officers  prohibited  from  acting  as  agents  of 
distillers.  (Letter  to  Collector  Herring,  Aug.  17,  1896;  42  Int. 
Rev.  Rec,  354.) 

The  furnishing  blank  Forms  59  for  private  purposes  is  unlawful. 
(T.  D.  513.) 

Sec.  3291.  Every  gauger  shall,  under  such  regulations  tu^uger's  re" 
as  may  be  prescribed  by  the  Commissioner  of  Internal 
Revenue,  make  a  daily  return  to  the  collector  of  his  dis- 
trict, giving  a  true  account,  in  detail,  of  all  articles  gauged 
and  proved  or  inspected  by  him,  and  for  whom,  and  the 
number  and  kind  of  stamps  used  by  him. 

Gauger's  compensation,  etc.     (Sec.  3157,  p.  73.) 
Sec.  3292.  Every  gauger  who  makes  any  false  or  fraud-  „  T^"^611!,^" 

i  '     ,    .  ,•  J&.&  j  „spection,      gaug- 

ulent  inspection,  gauging,  or  proof  shall  pay  a  penalty  or  ing,  etc.;  penalty. 
one  thousand  dollars,  and  be  fined  not  less  than  five  hun- 
dred dollars  nor  more  than  five  thousand  dollars,  and  im- 
prisoned not  less  than  three  months  nor  more  than  three 
years. 

ENTRIES    FOR    DEPOSIT    AND    WAREHOUSING    BONDS    COVERING    SPIRITS 
IN    DISTILLERY    WAREHOUSES   AND    SPECIAL    BONDED    WAREHOUSES. 

Sec.  3293  [as  amended  by  section  4,  act  of  May  28,  1880 
(21  Stat.,  145),  and  sec.  49,  act  of  Aug.  28, 1894  (28  Stat., 
509)].  The  distiller  of  all  spirits  removed  as  aforesaid  to    Entry,  etc.,  of 
the  distillery  warehouse  shall,  on  the  first  day  of  eachtc^distiiTjVy 
month,  or  within  five  days  thereafter,  enter  the  same  f or  warenouse- 


182  DISTILLED   SPIRITS. 

deposit  in  such  warehouse,  under  such  regulations  as  the 
Commissioner  of  Internal  Revenue  may  prescribe.  Said 
entry  shall  be  in  triplicate,  and  shall  contain  the  name  of 
the  person  making  the  entry,  the  designation  of  the  ware- 
house in  which  the  deposit  is  made,  and  the  date  thereof, 
and  shall  be  in  the  following  form: 

ENTRY    FOR   DEPOSIT    IN    DISTILLERY    WAREHOUSE. 

Entry  of  distilled  spirits  deposited  by ,  in  distillery 

warehouse  ,  in  the  -         -  district,  State  of  — ; ,  during  the 

month  ending  on  the day  of  -       — ,  anno  Domini . 

And  the  entry  shall  specify  the  kind  of  spirits,   the 
whole  number  of  packages,  the  marks  and  serial  numbers 
thereon,  the  number  of  gauge  or  wine  gallons,  proof-gal- 
lons, and  taxable  gallons,  and  the  amount  of  tax  on  the 
spirits  contained  in  them;  all  of  which  shall  be  verified 
by  the  oath  of  the  distiller  of  the  same  attached  to  the 
entry.     The  said  distiller  shall  at  the  time  of  making  said 
Bond  required,  entry  give  his  bond  in  duplicate,  with  one  or  more  sure- 
ties, satisfactory  to  the  collector  of  the  district,  condi- 
tioned that  the  principal  named  in  said  bond  shall  pay 
the  tax  on  the  spirits  as  specified  in  the  entry,  or  cause 
the  same  to  be  paid,  before  removal  from  said  distillery 
spirits  to  be  re- warehouse,  and  within  eight  years  from  the  date  of  said 
wit'ehdifnibg0St entry;  and  the  penal  sum  of  such  bond  shall  not  be  less 
years-  than  the  amount  of  the  tax  on  such  distilled  spirits.    One 

of  said  entries  shall  be  retained  in  the  office  of  the  collector 
of  the  district,  one  sent  to  the  storekeeper  in  charge  of 
the  warehouse,  to  be  retained  and  filed  in  the  warehouse, 
and  one  sent  with  duplicate  of  the  bond  to  the  Commis- 
sioner of  Internal  Revenue,  to  be  filed  in  his  office. 
New  bond  in  A  new  bond  shall  be  required  in  case  of  the  death,  in- 
caseofdeath,etc- solvency,  or  removal  of  either  of  the  sureties,  and  may  be 
required  in  any  other  contingency  affecting  its  validity  or 
impairing  its  efficiency,  at  the  discretion  of  the  Commis- 
sioner of  Internal  Revenue.  And  in  case  the  distiller 
fails  or  refuses  to  give  the  bond  hereinbefore  required,  or 
to  renew  the  same,  or  neglects  to  immediately  withdraw 
the  spirits  and  pay  the  tax  thereon,  of  if  he  neglects  to 
withdraw  any  bonded  spirits  and  pay  the  tax  thereon 
before  the  expiration  of  the  time  limited  in  the  bond,  the 
collector  shall  proceed  to  collect  the  tax  by  distraint, 
issuing  his  warrant  of  distraint  for  the  amount  of  tax 
found  to  be  due,  as  ascertained  by  him  from  the  report  of 
the  ganger  if  no  bond  was  given,  or  from  the  terms  of  the 
bond  if  a  bond  was  given.  But  this  provision  shall  not 
exclude  any  other  remedy  or  proceeding  provided  by  law. 

T.  D.  21735. 

of  sXtts'itfwire3     ^  ^  smin<  aPPear  afc  anv  ^une  that  there  has  been  a  loss 
house"  e"  of  distilled  spirits  from  any  cask  or  other  package  here- 

after deposited  in  a  distillery  warehouse,  other  than  the 
loss  provided  for  in  section  thirty-two  hundred  and 
twenty-one  of  the  Revised  Statutes  of  the  United  States, 


DISTILLED   SPIRITS.  183 

as  amended,  which,  in  the  opinion  of  the  Commissioner 
of  Internal  Revenue,  is  excessive,  he  may  instruct  the 
collector  of  the  district  in  which  the  loss  has  occurred  to 
require  the  withdrawal  from  warehouse  of  such  distilled 
spirits,  and  to  collect  the  tax  accrued  upon  the  original 
quantity  of  distilled  spirits  entered  into  the  warehouse  in 
such  cask  or  package,  notwithstanding  that  the  time 
specified  in  any  bond  given  for  the  withdrawal  of  the 
spirits  entered  into  warehouse  in  such  cask  or  package 
has  not  expired.  If  the  said  tax  is  not  paid  on  demand, 
the  collector  shall  report  the  amount  due  upon  his  next 
monthly  list,  and  it  shall  be  assessed  and  collected  as 
other  taxes  are  assessed  and  collected. 

That  the  tax  on  all  distilled  spirits  hereafter  entered  for  wTta£>  ^  paid 
deposit  in  distillery  warehouses  shall  be  due  and  payable  years  of  date  of 
before  and  at  the  time  the  same  are  withdrawn  therefrom ei 
and  within  eight  years  from  the  date  of  the  entry  for 
deposit  therein;  and  warehousing  bonds  hereafter  taken 
under  the  provisions  of  section  thirty-two  hundred  and 
ninety-three  of  the  Revised  Statutes  of  the  United  States 
shall  be  conditioned  for  the  payment  of  the  tax  on  the 
spirits  as  specified  in  the  entry  before  removal  from  the 
distillery  warehouse,   and  within  eight  years  from  the 
date  of  said  bonds. 

Circular  No.  625,  revised  March  23,  1911.     T.  D.  1689. 

A  like  provision  as  to  spirits  deposited  in  general  bonded 
warehouses  or  in  special  bonded  warehouses.  (Sec.  58,  Act  of 
Aug.  28,  1894,  p.  191.) 

Collectors  will,  unless  otherwise  directed,  where  the  distiller 
neglects  to  pay  the  tax  on  his  bonded  spirits  within  the  time 
fixed  by  law,  proceed  to  collect  the  tax  due  as  above  provided, 
instead  of  reporting  the  same  on  lists,  Form  23. 

In  case  of  distraint,  the  collector  will  first  distrain  upon  the 
spirit  as  to  which  the  tax  is  due  and  is  a  first  lien  (sec.  3251),  and 
if  further  distraint  becomes  necessary,  upon  the  distillery  prop- 
erty, which  is  also  subject  to  the  lien  imposed  by  section  3251. 
(Circular  letter  to  collectors,  Nov.  4,  1899;  T.  D.  21735.) 

Warehouse  certificates  for  bonded  spirits. — As  warehouse  cer- 
tificates for  bonded  spirits  form  no  part  of  our  revenue  system, 
the  affixing  of  United  States  gaugers'  names  thereto  can  not  be 
permitted  under  any  circumstances.     (T.  D.  1494.) 

Warehouse  receipts  or  certificates  for  bonded  spirits.  (Cir. 
No.  25,  Int.  Rev.  No.  736;  T.  D.  1503.) 

[Sec.  3293a.]  [Sec.  49  of  the  act  of  Aug.  28,  1894  ^  J^^fvel 
Stat.,  509).]     That  warehousing  bonds  and  transporta-  by  distillers, 
tion  and  warehousing  bonds,  conditioned  for  the  pay- 
ment of  the  taxes  on  all  distilled  spirits  entered  for  deposit 
into  distillery  or  special  bonded  warehouses  on  and  after 
the  passage  of  this  Act,  shall  be  given  by  the  distiller  of 
said  spirits   as  required  by  existing  laws,   conditioned, 
however,  for  payment  of  taxes  at  the  rate  imposed  by    Tax  to  be  paid 
this  Act  and  before  removal  from  warehouse  and  within  years  from 'date 
eight  years;  as  to  fruit  brandy,   from  the  date  of  the£t!3§3fi«£SS 
original  gauge,  and  as  to  all  other  spirits  from  the  date  of  and  as  to  other 
the  original  entry  for  deposit,  and  all  warehousing  bonds Xorigir^entry 
or  transportation   and   warehousing   bonds   conditioned  fordeP°slt- 


184  DISTILLED   SPIRITS. 

for  the  payment  of  the  taxes  on  distilled  spirits  entered 

for  deposit  into  distillery  or  special  bonded  warehouses 

prior  to  that  date  shall  continue  in  full  force  and  effect 

Additional  for  the  time  named  in  said  bonds,  except  where  new  or 

bonds.  additional  bonds  are  required  under  existing  law. 

3J%  5JC  5Jh  *J»  ?j» 

Provided,  That  the  distiller  may,    at  his  option  and 

under  such  regulations  as  the  Commissioner  of  Internal 

Revenue,  with  the  approval  of  the  Secretary  of  the  Treas- 

Annuai  bonds,  ury,  shall  prescribe,  execute  an  annual  bond  for  the  spirits 

so  deposited  in  lieu  of  the  bonds  herein  provided. 

The  amendments  effected  by  section  49,  above,  so  far  as  relates 
to  spirits  deposited  in  distillery  warehouses,  consisted : 

(1)  In  requiring  the  warehousing  bond  to  be  given  in  each 
case  by  the  "distiller,"  and  not  by  the  "distiller  or  owner,"  as 
theretofore  required ; 

(2)  In  requiring  the  bond  to  be  conditioned  for  the  payment 
of  taxes  at  the  rate  imposed  by  the  act  (sec.  48),  and  within  eight 
years  from  the  date  of  original  entry  for  deposit;  and 

(3)  In  providing  for  an  annual  warehousing  bond  (when  the 
distiller  so  elects),  in  lieu  of  the  monthly  warehousing  bond. 

Depositing  spirits  in  a  Government  warehouse  does  not  make 
them  the  property  of  the  Government  or  cause  them  to  be  held 
at  the  risk  of  the  bailee.  (Farrell  v.  United  States,  99  U.  S.  (9 
Otto),  221;  25  Int.  Rev.  Rec,  83;  circuit  court  decision,  24  Int. 
Rev.  Rec,  231.) 

Spirits  destroyed  in  warehouses  by  fire  or  other  casualty,  abate- 
ment or  refund  of  taxes  on.     (Sec.  3221,  p.  117.) 

Spirits  destroyed  during  transportation  from  a  distillery  ware- 
house to  a  port  of  export.     (Act  of  Dec.  20,  1879,  p.  223.) 

Spirits  destroyed  during  transportation  from  a  distillery  ware- 
house to  a  manufacturing  warehouse.  ([3433  b]  sec.  15,  Act  of 
May  28,  1880,  p.  336.) 

Stockholders  of  a  corporation  engaged  in  distilling  can  not  be 
accepted  as  sureties  on  the  distillers'  warehousing  bond.  (16 
Op.  Atty.  Gen.,  10;  24  Int.  Rev.  Rec,  153.) 

Empty  packages  found  in  distillery  warehouses.  (28  Int.  Rev. 
Rec,  189.) 

Collection  of  tax  on  spirits  not  paid  within  the  time  fixed  by 
the  bond.  (29  Int.  Rev.  Rec,  81;  30  ibid.,  141,  165,  253,  261, 
309;  31  ibid.,  61,  197.) 

Laches  of  officers  does  not  relieve  sureties.  (See  under  sec. 
3260a.) 

Payment  of  the  tax  on  forfeited  spirits  by  the  marshal  out  of 
proceeds  of  sale  discharges  liability  of  sureties  on  warehouse 
bond  for  tax.  (United  States  v.  Ulrici,  111  U.  S.,  38;  30  Int.  Rev. 
Rec,  111;  T.  D.  1339  and  T.  D.  1385.)  See  U.  S.  v.  South 
Branch  Distilling  Co.,  8  Biss.  162,  Fed.  Cas.  16359. 

Withdrawal  of  spirits  from  warehouse  by  assignee.  (Letter  to 
Collector  Mize,  Oct.  14, 1895;  41  Int.  Rev.  Rec,  437.) 

Equalizing  spirits  in  warehouse.  (White  Oak  Distillery  v. 
Sharp,  T.  I).  1681.) 

The  destruction  of  spirits  by  fire  in  a  warehouse  constitutes  a 
"removal"  so  as  to  make  the  tax  payable  before  expiration  of 
bonded  period.  (United  States  v.  Peace  et  al.  (1893),  53  Fed. 
Rep.,  999.) 

When  a  suit  is  brought  on  a  distiller's  warehousing  bond  for 
tax  on  spirits  alleged  to  have  been  destroyed  by  fire  in  ware- 
house, defendants  have  the  right,  in  the  absence  of  fraud,  collur 
sion,  or  negligence,  to  make  as  a  defense  that  the  spirits  were  so 
destroyed  and  that  no  tax  is  due.  (Freeman  v.  U.  S.  (U.  S. 
circuit  court  of  appeals,  fourth  circuit),  157  Fed  Rep.,  195.) 


DISTILLED   SPIRITS.  185 

Distiller's  warehousing  bonds.  (T.  D.  1040.  T.  D.  1054.) 
Transportation  and  warehousing  bonds  may  be  executed  in 
duplicate  instead  of  triplicate.     (T.  D.  1548.) 

Instructions  relative  to  the  preparation  of  bonds  executed  by 
guarantee  or  surety  companies  (T.  D.  1382,  June  24,  1908.) 

Execution  of  bonds  by  agents  or  attorneys.  (T.  D.  780,  T.  D. 
877.) 

Sec.  3294  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  (20  withdrawal 
Stat. ,327),  and  by  sec.  5,  act  of  May  28, 1880  (21  Stat. ,  1 45).} gg, ^rehouse, 
Any  distilled  spirits  may,  on  payment  of  the  tax  thereon, 
be  withdrawn  from  warehouse  on  application  to  the  col- 
lector of  the  district  in  charge  of  such  warehouse,  on  mak- 
ing a  withdrawal  entry  in  duplicate,  and  in  the  following 
form : 

ENTRY   FOR    WITHDRAWAL   OP    DISTILLED    SPIRITS    FROM    WAREHOUSE. 

Tax  paid. 

Entry  of  distilled  spirits  to  be  withdrawn,  on  payment  of  the  tax, 
from  warehouse  of  distillery  number ■,  situated  in  the  -  dis- 
trict of ,  by ,  deposited  on  the day  of  —       — ,  anno 

Domini ,  by  -        — ,  in  said  warehouse. 

And  the  entry  shall  specify  the  whole  number  of  casks 
or  packages,  with  the  marks  and  serial  numbers  thereon, 
the  number  of  gauge  or  wine  gallons,  and  of  proof  gallons 
and  taxable  gallons,  and  the  amount  of  the  tax  on  the  dis- 
tilled spirits  contained  in  them  at  the  time  they  were 
deposited  in  the  distillery  warehouse;  and  said  entry  shall 
also  specify  the  number  of  gauge  or  wine  gallons,  and  of  proof 
gallons,  and  taxable  gallons  contained  in  said  casks  or  pack- 
ages at  the  time  application  shall  be  made  for  the  withdrawal 
thereof;  and  on  payment  of  the  tax  the  collector  shall  issue 
his  order  to  the  storekeeper  in  charge  of  the  warehouse  for 
the  delivery.  One  of  said  entries  shall  be  filed  in  the  office 
of  the  collector,  and  the  other  transmitted  by  him  to  the 
Commissioner  of  Internal  Revenue. 

[Sec.  3294a.]  [Sec.  50,  of  the  act  of  Aug.  28,  1894.     (28  ^s gwgj**|£ 
Stat.,  509).]     That  the  distiller  of  any  distilled  spirits  house  may  be  re- 
deposited  in  any  distillery  warehouse,  or  special  bonded  gauged- 
warehouse,  or  in  any  general  bonded  warehouse  estab- 
lished under  the  provisions  of  this  Act,  may,  prior  to  the 
expiration  of  four  years  from  the  date  of  original  gauge  as 
to  fruit  brandy,  or  original  entry  as  to  all  other  spirits,  file 
with  the  collector  a  notice  giving  a  description  of  the  pack- 
ages containing  the  spirits,  and  request  a  regauge  of  the 
same,  and  thereupon  the  collector  shall  direct  a  gauger  to 
regauge  the  spirits,  and  to  mark  upon  each  such  package 
the  number. of  gauge  or  wine  gallons  and  proof  gallons 
therein  contained.     If  upon  such  regauging  it  shall  appear 
that  there  has  been  a  loss  of  distilled  spirits  from  any  cask 
or  package,  without  the  fault  or  negligence  of  the  distiller  le^ 
thereof,  taxes  shall  be  collected  only  on  the  quantity  of 
distilled  spirits  contained  in  such  cask  or  package  at  the 
time  of  the  withdrawal  thereof  from  the  distillery  ware- 
house  or  other   bonded   warehouse:  Provided,   however, 


Allowance     for 
age. 


186  DISTILLED    SPIRITS. 

That  the  allowance  which  shall  be  made  for  such  loss  of 
spirits  as  aforesaid  shall  not  exceed  one  proof  gallon  for 
two  months  or  part  thereof;  one  and  one-half  gallons  for 
three  and  four  months;  two  gallons  for  five  and  six 
months;  two  and  one-half  gallons  for  seven  and  eight 
months;  three  gallons  for  nine  and  ten  months;  three  and 
one-half  gallons  for  eleven  and  twelve  months;  four  gal- 
lons for  thirteen,  fourteen,  and  fifteen  months;  four  and 
one-half  gallons  for  sixteen,  seventeen,  and  eighteen 
months;  five  gallons  for  nineteen,  twenty,  and  twenty- 
one  months;  five  and  one-half  gallons  for  twenty-two, 
twenty-three,  and  twenty-four  months;  six  gallons  for 
twenty-five,  twenty-six,  and  twenty-seven  months;  six 
and  one-half  gallons  for  twenty-eight,  twenty-nine,  and 
thirty  months;  seven  gallons  for  thirty-one,  thirty-two, 
and  thirty-three  months;  seven  and  one-half  gallons  for 
thirty-four,  thirty-five,  and  thirty-six  months;  eight  gal- 
lons for  thirty-seven,  thirty-eight,  thirty-nine,  and  forty 
months;  eight  and  one-half  gallons  for  forty-one,  forty- 
two,  forty- three,  and  forty-four  months;  nine  gallons  for 
forty-five,  forty-six,  forty -seven,  and  forty-eight  months; 
and  no  further  allowance  shall  be  made:  And  provided 
further,  That  in  case  such  spirits  shall  remain  in  warehouse 
after  the  same  have  been  regauged,  the  packages  contain- 
ing the  spirits  shall,  at  the  time  of  withdrawal  from  ware- 
house and  at  such  other  times  as  the  Commissioner  of 
Internal  Revenue  may  direct,  be  again  regauged  or 
inspected;  and  if  found  to  contain  a  larger  quantity  than 
shown  by  the  first  regauge,  the  tax  shall  be  collected  and 
paid  on  the  quantity  contained  in  each  such  package  as 
shown  by  the  original  gauge:  And  provided  further,  That 
taxes  shall  be  collected  on  the  quantity  contained  in  each 
Act  of  Mar.  3,  cask  or  package  as  shown  by  the  original  gauge,  where  the 
l8Act  of  Jan.  i:j,  distiller  does  not  request  a  regauge  before  the  expiration 
1903-  of  seven  years  from  the  date  of  original  entry  or  gauge: 

Provided  also,  That  the  foregoing  allowance  of  loss  shall 
apply  only  to  casks  or  packages  of  a  capacity  of  forty  or 
more  wine  gallons,  and  that  the  allowance  for  loss  on  casks 
or  packages  of  less  capacity  than  forty  gallons  shall  not 
exceed  one-half  the  amount  allowed  on  said  forty-gallon 
cask  or  package;  but  no  allowance  shall  be  made  on  casks 
or  packages  of  less  capacity  than  twenty  gallons:  And 
prwrided  further,  That  the  proof  of  such  distilled  spirits 
shall  not  in  any  case  be  computed  at  the  time  of  with- 
drawal al  less  than  one  hundred  per  centum. 

Regulations  governing  the  shori  method  of  withdrawing  spirits 

from  internal -re  venue  bonded  warehouses.    (T.  D.  18998,  1898.) 

Method  of   expediting  withdrawals  of  spirits  from  distillery 

warehouses  in  certain  cases.     (T.  D.  18778,  1898.) 

Second  regauge  upon  withdrawal  of  spirits  from  bonded  ware- 
houses by  distiller-     when  required.     (T.  1).  19061,  1898.) 

Withdrawal  of  domestic  spirits.  When  and  how  request  for 
regauge  of  spirits  in  bond  less  than  four  years  may  be  made. 
(T.  It.  L9125,  1898.) 


DISTILLED    SPIRITS.  187 

Explaining  the  provisions  of  section  50,  act  of  August  28, 1894, 
as  to  the  regauging  of  distilled  spirits.  (C'ir.  No.  463,  July  6, 
1896;  42  Int.  Rev.  Rec,  297.) 

Requiring  collectors  of  internal  revenue  to  certify  to  the 
authenticity  of  the  signatures  to  requests  for  regauge  of  spirits 
under  section  50.  (Cir.  No.  468,  Aug.  29,  1896;  42  Int.  Rev. 
Rec,  373.) 

Description  of  packages  of  spirits  in  notice  and  request  for 
regauge  under  section  50.  (Circular  Letter  No.  474,  Apr.  2,  1897; 
43  Int.  Rev.  Rec,  149.) 

Delay  in  filing  application  for  regauge.  (Cir.  No.  645;  T.  D. 
687.) 

Excessive  losses  of  distilled  spirits  in  bonded  warehouses. 
(Cir.  No.  625,  revised;  T.  D.  1689;  Reg.  No.  20,  revised,  art.  32, 

p.  19.) 

No  allowance  can  be  made  for  additional  outage  occurring  after 
the  first  regauge,  even  where  the  spirits  are  to  be  exported. 
(T.  D.  18994,  1898.) 

Transfer  of  distilled  spirits  to  general  bonded  warehouse;  losses 
adjusted.     (T.  D.  1320.) 

Visits  of  general  storekeepers  and  gangers  in  charge  of  distillery 
warehouses  to  detect  excessive  losses  of  distilled  spirits.  (T.  D. 
461,  Jan.  14,  1902.) 

[Sec.  32946]  Sec.1.  [Act  of  Mar.  3,1899  (30  Stat,  1349)]. 
That  under  the  conditions  and  limitations  imposed  by 
section  fifty  of  the  Act  of  August  twenty-eighth,  eighteen 
hundred  and  ninety-four,  entitled  "An  Act  to  reduce 
taxation,  to  provide  revenue  for  the  support  of  the  Gov- 
ernment, and  for  other  purposes,"  allowance  for  loss  shall 
be  made  as  to  all  distilled  spirits  produced  and  originally 
gauged  for  deposit  prior  to  January  first,  eighteen  hun- 
dred and  ninety-nine,  and  which  lawfully  remain  in  any 
internal-revenue  bonded  warehouse,  after  the  expiration 
of  the  period  of  forty-eight  months  from  the  date  of  origi- 
nal gauge :  Provided,  however,  That  the  allowance  for  loss  Allowance  for 
herein  authorized  shall  not  exceed  nine  and  one-half  gal- 
lons for  forty-nine,  fifty,  fifty-one,  and  fifty-two  months; 
ten  gallons  for  fifty-three,  fifty-four,  fifty-five,  and  fifty- 
six  months ;  ten  and  one-half  gallons  for  fifty-seven,  fifty- 
eight,  fifty-nine,  and  sixty  months;  eleven  gallons  for 
sixty-one,  sixty-two,  sixty-three,  and  sixty-four  months; 
eleven  and  one-half  gallons  for  sixty-five,  sixty-six,  sixty- 
seven,  and  sixty-eight  months;  twelve  gallons  for  sixty- 
nine,  seventy,  seventy-one,  and  seventy-two  months; 
twelve  and  one-half  gallons  for  seventy-three,  seventy- 
four,  seventy-five,  and  seventy-six  months;  thirteen  gal- 
lons for  seventy-seven,  seventy-eight,  seventy-nine,  and 
eighty  months;  and  thirteen  and  one-half  gallons  for 
eighty-one,  eighty-two,  eighty-three,  and  eighty-four 
months,  and  no  further  allowance  shall  be  made. 

Sec.  2.  That  the  allowance  for  loss  herein  provided  shall  AUowance^^jo 
be  ascertained  by  regauge  on  request  of  distiller  before  the  by  regauge. 
expiration  of  eighty-four  months  from  date  of  original 
gauge,  and  shall  apply  to  spirits  remaining  in  any  internal- 
revenue  bonded  warehouse  which  shall  have  been  regauged 
heretofore  under  the  provisions  of  section  fifty  of  the  said 
Act  of  August  twenty-eighth,  eighteen  hundred  and 
ninety-four:  Provided,   That  for   the  regauge   of  spirits 


188  DISTILLED   SPIRITS. 

originally  gauged  for  deposit  on  or  before  the  first  day  of 
gauge16  for  re*  March,  eighteen  hundred  and  ninety-two,  the  request  of 
the  distiller  for  a  regauge  under  the  provisions  of  this  Act 
may  be  made  at  any  time  before  the  first  day  of  May, 
eighteen  hundred  and  ninety-nine. 

Regauge  of  bonded  spirits  on  request  of  distiller  under  the 
provisions  of  section  50,  act  of  August  28,  1894,  as  amended  by 
act  of  March  3,  1899.  (Int.  Rev.  Cir.  No.  525,  Mar.  9, 1899;  T.  D. 
No.  20836.) 

When  requests  for  regauge  must  be  filed  under  act  of  March  3, 
1899.  If  requests  are  seasonably  filed  no  injury  will  result  to 
distiller  by  reason  of  delay  in  regauge.     (T.  D.  No.  20948,  1899.) 

The  maximum  allowance  for"  each  of  the  periods  named  in  the 
case  of  a  cask  or  package  of  40  or  more  wine-gallons'  capacity 
may  be  stated  in  tabular  form  as  follows: 

Not  to  exceed— 

I  proof  gallon  for  2  months  or  part  thereof. 

l\  gallons  for  more  than  2  months  and  not  more-than  4  months. 
2~gallons  for  more  than  4  months  and  not  more  than  6  months. 
2\  gallons  for  more  than  6  months  and  not  more  than  8  months. 
3  gallons  for  more  than  8  months  and  not  more  than  10  months. 
3J  gallons  for  more  than  10  months  and  not  more  than  12  months. 
4"gallons  for  more  than  12  months  and  not  more  than  15  months. 
4|  gallons  for  more  than  15  months  and  not  more  than  18  months. 

5  gallons  for  more  than  18  months  and  not  more  than  21  months. 
5J  gallons  for  more  than  21  months  and  not  more  than  24  months. 

6  gallons  for  more  than  24  months  and  not  more  than  27  months. 
6£  gallons  for  more  than  27  months  and  not  more  than  30  months. 

7  gallons  for  more  than  30  months  and  not  more  than  33  months. 
7h  gallons  for  more  than  33  months  and  not  more  than  3G  months. 
8"gallons  for  more  than  36  months  and  not  more  than  40  months. 
8£  gallons  for  more  than  40  months  and  not  more  than  44  months. 

9  gallons  for  more  than  44  months  and  not  more  than  48  months. 
Qh  gallons  for  more  than  48  months  and  not  more  than  52  months. 

10  gallons  for  more  than  52  months  and  not  more  than  56  months. 
10J  gallons  for  more  than  56  months  and  not  more  than  60  months. 

II  gallons  for  more  than  CO  months  and  not  more  than  64  months. 
11\  gallons  for  more  than  64  months  and  not  more  than  68  months. 

12  gal'ons  for  more  than  68  months  and  not  more  than  72  months. 
12J  gallons  for  more  than  72  months  and  not  more  than  76  months. 

13  gallons  for  more  than  76  months  and  not  more  than  80  months. 
13J  gallons  for  more  than  80  months  and  not  more  than  84  months. 

The  maximum  allowance  for  loss  on  casks  or  packages  of  less 
capacity  than  40  wine  gallons  and  not  less  than  20  wine  gallons 
is  limited  to  one-half  the  amounts  stated  in  the  above  table. 

AN  ACT  To  amend  the  internal-revenue  laws.    Approved,  Jan- 
uary 13,  1903.     (32  Stat.,  770.) 

outage.  That  all  distilled  spirits  now  in  internal-revenue  bonded 

warehouses  or  which  may  hereafter  be.  produced  and  de- 
posited in  such  warehouses  shall  be  entitled  to  the  same 
allowance  for  loss  from  leakage  or  evaporation  which  now 
exists  in  favor  of  distilled  spirits  produced,  gauged,  and  so 
deposited  prior  to  January  first,  eighteen  hundred  and 
ninety-nine,  and  subject  to  the  same  conditions  and  limi- 
tations. 

This  act  extends  the  allowance  for  leakage  to  all  distilled 
spirits  in  bond,  and  is  amendatory  of  the  act  of  March  3,  1899 
(30  Stat.,  1319.) 

Paull  or  negligence  in  connection  with  loss  of  distilled  spirits 
in  bonded  warehouses.    (Cir.  No.  328;  35  Int.  Rev.  Rec,  190.) 

Regulations  concerning  the;  tare  of  spirit  packages.  (Cir.  No. 
675,  Nov.  7,  1905.     T.  D.  942.) 


DISTILLED   SPIKITS.  189 

GENERAL    BONDED    WAREHOUSES    FOR    DISTILLED    SPIRITS    OTHER   THAN 
FRUIT   BRANDY.      ACT   OF  AUGUST   28,  1894.      (28   Stat.,  509.) 

Sec.  51.  That  the  Commissioner  of  Internal  Revenue    Not  over  ten  in 
shall  be,  and  is  hereby,  authorized,  in  his  discretion  and01 
upon  the  execution  of  such  bond  as  he  may  prescribe,  to 
establish  one  or  more  warehouses,  not  exceeding  ten  in 
number  in  any  one  collection  district,  to  be  known  and 
designated  as  general  bonded  warehouses,  and  to  be  used 
exclusively  for  the  storage  of  spirits  distilled  from  mate- 
rials other  than  fruit,  each  of  winch  warehouses  shall  be  in 
the  charge  of  a  storekeeper  or  storekeeper  and  gauger  to    in   charge    of 
be  appointed,  assigned,  transferred,  and  paid  in  the  same  Storekeeper   and 
manner  as  such  officers  for  distillery  warehouses  are  nowsauger- 
appointed,  assigned,  transferred,  and  paid.     Every  such 
warehouse  shall  be  under  the  control  of  the  collector  of    VrYieT  control 
internal  revenue  of  the  district  in  which  such  warehouse0 
is  located,  and  shall  be  in  the  joint  custody  of  the  store-   in  joint  custody 
keeper  and  proprietor  thereof,  and  kept  securely  locked,  "j,!*0 proprietor' 
and  shall  at  no  time  be  unlocked  or  opened  or  remain  open  Not  to  be  un- 

,    .       , ,  j-  i       j.         i  ii  locked  or  opened 

except  m  the  presence  of  such  storekeeper  or  other  person  except,  etc. 

who  may  be  designated  to  act  for  him,  as  provided  in  the 

case  of  distillery  warehouses;  and  such  warehouses  shall 

be  under  such  further  regulations  as  the  Commissioner  of    Regulations. 

Internal  Revenue,  with  the  approval  of  the  Secretary  of 

the  Treasury,  may  prescribe. 

Sec.  52.  That  any  distilled  spirits  made  from  materials  re^sv^llesrpi^y 
other  than  fruit,  and  lawfully  deposited  in  a  distillery  ware-  from     distillery 
house,  may,  upon  application  of  the  distiller  thereof,  be™0nreraiOUbonded 
removed  from  such  distillery  warehouse  to  any  general  warehouse. 
bonded  warehouse  established  under  the  provisions  of  the 
preceding  section ;  and  the  removal  of  said  spirits  to  said 
general  bonded  warehouse  shall  be  under  such  regulations, 
and  after  making  such  entries  and  executing  and  riling 
with  the  collector  of  the  district  in  winch  the  spirits  were 
manufactured,  Guch  bonds  and  bills  of  lading,  and  the 
giving  of  such  other  additional  security,  as  may  be  pre- 
scribed by  the  Commissioner  of  Internal  Revenue  and  ap- 
proved by  the  Secretary  of  the  Treasury. 

Sec.  53.  That  all  spirits  intended  for  deposit  in  a  general  fi|etdamPeft0°re3e  raef: 
bonded  warehouse,  before  being  removed  from  the  dis-movai. 
tillery  warehouse,  shall  have  affixed  to  each  package  an 
engraved  stamp  indicative  of  such  intention,  to  be  pro- 
vided and  furnished  to  the  several  collectors  as  in  the  case 
of  other  stamps,  and  to  be  charged  to  them  and  accounted 
for  in  the  same  manner. 

Sec.  54.  That  any  spirits  removed  in  bond  as  aforesaid    How  spirits 

.   J  i  r ,  i,  1t  i  i      mav  be  deposited 

may,  upon  its  arrival  at  a  general  bonded  warehouse,  be  in  a  general  bond- 
deposited  therein  upon  making  such  entries,  filing  such ed  warehouse- 
bonds  and  other  securities,  and  under  such  regulations  as 
shall  be  prescribed  by  the  Commissioner  of  Internal  Rev- 
enue, with  the  approval  of  the  Secretary  of  the  Treasury. 


190  DISTILLED   SPIRITS. 

Tax  shall   be  j^  snall  be  one  of  the  conditions  of  the  warehousing!:  bond 

paid  within  eight  .   .,      ,,    ',   ,,  •       •       1  i-  iu        J 

years  from   the  covering  such  spirits  that  the  principal  named  in  said  bond 
entry  tato°d!tffl- shall  pay  the  tax  on  the  spirits  as  specified  in  the  entry  or 
ery  warehouse.     cause  the  same  to  be  paid  within  eight  years  from  the  date 
of  the  original  entry  of  the  same  into  the  distillery  ware- 
house,   and    before    withdrawal,    except    as    hereinafter 
provided. 
drawal  fo^tTan^-     Sec.  55.  That  any  spirits  may  be  withdrawn  once  and 
Pnothatiwn  to.no  more  from  one  general  bonded  warehouse  for  transpor- 
house.  tation  to  another  general  bonded  warehouse,  and  when 

intended  to  be  so  withdrawn,  shall  have  affixed  thereto 

ditinonautCaameatoano^ner  general  bonded  warehouse  stamp  indicative  of 
be  affixed.  such  intention;  and  the  withdrawal  of  such  spirits,  and 

their  transfer  to  and  entry  into  such  general  bonded  ware- 
house shall  be  under  such  regulations  and  upon  the  filing 
triN °bonds' bi3s °^  sucn  notices,  entries,  bonds,  and  bill  of  lading  as  the 
of  lading,  in  case  Commissioner  of  Internal  Revenue,  with  the  approval  of 
ofBoandser'to   be  the  Secretary  of  the  Treasury,  may,  from  time  to  time, 

Irr  an^mi'^  be  P1  escl  ^e '  ano*  ^ne  bonds  covering  spirits  in  general 
renewed.  bonded   warehouses  shall  be  given  by  distillers  of  the 

spirits,  and  shall  be  renewed  at  such  times  as  the  Com- 
missioner of  Internal  Revenue  may,  by  regulations,  require. 
free  oftex tation      Sec.  56.  That  the  provisions  of  existing  law  in  regard  to 
the  withdrawal  of  distilled  spirits  from  warehouses  upon 

niJnuflfeYuringP^111611^  °^  tax>  or  f°r  exportation,  or  for  transfer  to  a 
warehouse     and  manuf acturing  warehouse,  and  as  to  the  gauging,  mark- 
unitecfstates1  or  mgj  branding,  and  stamping  of  the  spirits  upon  such  with- 
ti<mstmc  institu"  drawals,  and  in  regard  to  withdrawals  for  the  use  of  the 
United  States  or  scientific  institutions  or  colleges  of  learn- 
ing, including  the  provisions  for  allowance  for  loss  by 
Loss  by  acd- accidental  fire  or  other  unavoidable  accident,  are  hereby 
extended  and  made  applicable  to  spirits  deposited  in  gen- 
eral bonded  warehouses  under  this  act. 

Under  section  56  of  the  act  of  August  28,  1894,  providing  for 
the  establishment  of  general  bonded  warehouses,  the  provisions 
for  allowance  for  loss  by  fire  or  other  unavoidable  accident  do 
not  extend  to  the  case  of  such  a  loss  while  spirits  are  in  transit 
from  a  distillery  warehouse  to  a  general  bonded  warehouse. 
(Greenbrier  Distillery  Co.  v.  Johnson,  88  Fed.  Rep.,  638.) 

diJtiikr?1  waT-  Sec.  57.  Whenever  distilling  shall  have  been  suspended 
h°ouseto  general  at  any  distillery  for  a  period  or  periods  aggregating  six 
house  may  be  months  during  any  calendar  year,  and  the  quantity  of 
mislioner  yof °i™- sPn"its  remaining  in  the  distillery  warehouse  does  not 
temai    Revenue  exceed  five  thousand  proof  gallons,  or  whenever,  in  the 

when      distillery        ••  e    ,,        ^  F    .  "       .   T  '  1T1 

warehouse  con- opinion  oi  the  Commissioner  oi  Internal  Revenue,  any 
5000  gaiTons^nd  distillery  warehouse  or  general  bonded  warehouse  is  un- 
tfie  distillery  is  safe  or  unfit  for  use,  or  the  merchandise  therein  is  liable  to 

under    susnen- 1  ,  ,  i  ..,  ,  ,. 

sion  six  months  loss  or  great  wastage,  he  may  in  either  such  case  discon- 
warehouse  ifun-  tinue  such  warehouse  and  require  the  merchandise  therein 
safe  or  unfit  for  to  be  transferred  to  such  other  warehouse  as  he  may  des- 
Provisicms  of  ignate,  and  within  Mich  time  as  he  may  prescribe;  and  all 
s'^'Zie'a^iica-^be  provisions  of  section  thirty-two  hundred  and  seventy- 
bie.  two  of  the  Revised  Statutes  of  the  United  States  relating 


DISTILLED    SPIRITS.  191 

to  transfers  of  spirits  from  warehouses,  including  those 
imposing  penalties,  are  hereby  made  applicable  to  trans- 
fers to  or  from  general  bonded  warehouses  established 
under  this  act. 

Sec.  58.  The  tax  upon  any  distilled  spirits  removed  be^SSLSi  Zd 
from  a  distillery  warehouse  for  deposit  in  a  general  bonded  collected  by  dis- 
warehouse,  and  in  respect  of  which  any  requirement  of 
this  act  is  not  complied  with,  shall,  at  any  time  when 
knowledge  of  such  fact  is  obtained  by  the  Commissioner 
of  Internal  Revenue,  be  assessed  by  him  upon  the  distiller 
of  the  same,  and  returned  to  the  collector,  who  shall  imme- 
diately  demand  payment  of  such  tax,   and  upon  the 
neglect  of  payment  by  the  distiller  shall  proceed  to  col- 
lect the  same  by  distraint.     But  this  provision  shall  not 
exclude  any  other  remedy  or  proceeding  provided  by  law 
to  enforce  the  payment  of  the  tax.     If  it  shall  appear  ateJn,case  of  ex- 
any  time  that  there  has  been  a  loss  of  distilled  spirits  from  casks    in  b  ware- 
any  cask  or  package  deposited  in  a  general  bonded  ware- ^one?  m™™- 
house  or  special  bonded  warehouse,  other  than  the  loss  a^  "d11?0*01"  *£ 
provided  for  in  section  thirty-two  hundred  and  twenty- if    tax    unpaid 
one  of  the  Revised  Statutes  of  the  United  States,  which,  raay  assess" 
in  the  opinion  of  the  Commissioner  of  Internal  Revenue, 
is  excessive,  he  may  instruct  the  collector  of  the  district 
in  which  the  loss  has  occurred  to  require  the  withdrawal 
from  warehouse  of  such  cask  or  package  of  distilled  spirits 
and  to  collect  the  tax  accrued  upon  the  original  quantity 
of  distilled  spirits  entered  into  the  warehouse  in  such  cask 
or  package,  less  only  the  allowance  for  loss  provided  by 
law.     If  the  said  tax  is  not  paid  on  demand  the  collector 
shall  report  the  amount  due,  as  shown  by  the  original 
gauge,  upon  his  next  monthly  list,  and  it  shall  be  assessed 
and  collected  as  other  taxes  are  assessed  and  collected. 

Sec.  59.  That  in  case  any  distilled  spirits  removed  from  .  Penai  provi- 
a  distillery  warehouse  for  deposit  in  a  general  bonded  tenses  specified? ' 
warehouse  shall  fail  to  be  deposited  in  such  general 
bonded  warehouse  within  ten  days  after  such  removal,  or 
within  the  time  specified  in  any  bond  given  on  such  re- 
moval, or  if  any  distilled  spirits  deposited  in  any  general 
bonded  warehouse  shall  be  taken  therefrom,  for  export  or 
otherwise,  without  full  compliance  with  the  provisions  of 
this  act,  and  with  the  requirements  of  any  regulations 
made  thereunder,  and  with  the  terms  of  any  bond  given 
on  such  removal,  or  if  any  distilled  spirits  which  have 
been  deposited  in  a  general  bonded  warehouse  shall  be 
found  elsewhere,  not  having  been  removed  therefrom 
according  to  law,  any  person  who  shall  be  guilty  of  such 
failure,  or  any  person  who  shall  in  any  manner  violate 
any  provision  of  the  next  preceding  eleven  sections  of  this 
act,  shall  be  subject,  on  conviction,  to  a  fine  of  not  less 
than  one  hundred  dollars  nor  more  than  five  thousand 
dollars,  or  to  imprisonment  for  not  less  than  three  months 
nor  more  than  three  years  for  every  such  failure  or  viola- 


192  DISTILLED   SPIRITS. 

tion;  and  the  spirits  as  to  which  such  failure  or  violation, 
or  unlawful  removal  shall  take  place  shall  be  forfeited  to 
the  United  States. 

Regulations,  No.  20,  relative  to  the  establishment  of  general 
bonded  warehouses,  for  the  storage  of  spirits  made  from  material 
other  than  fruit. 

Supplement  No.  1,  relative  to  the  bonding  of  distilled  spirits 
in  general  bonded  warehouses. 

Bills  of  lading.     (T.  D.  1533.) 

SPECIAL    BONDED    WAREHOUSES    FOR    FRUIT    BRANDY. 

[Act  of  March  3,  1877  (19  Stat.,  393).] 

The  provisions  of  this  act  were  extended  and  made  applicable 
to  brandy  distilled  from  apples  or  peaches,  or  from  any  other 
fruit,  by  the  act  of  October  18,  1888.    (25  Stat.,  560.)    See  p.  195. 

Sec.  1.  That  the  Commissioner  of  Internal  Revenue 
shall  be,  and  hereby  is,  authorized  in  his  discretion,  and 
upon  the  execution  of  such  bonds  as  he  may  prescribe,  to 
on?dis0tricrttenines^aDnsn  warehouses,   to   be  known   as  special  bonded 
warehouses,  not  exceeding  ten  in  number  in  any  one  col- 
in   charge   of  lection-district,   exclusively   for  the   storage   of   brandy 
made  from  grapes,  each  of  which  warehouses  shall  be  in 
the  charge  of  a  storekeeper,  to  be  appointed,  assigned, 
transferred,   and  paid  in  the  same  manner  that  store- 
keepers for  distillery-warehouses  are  now  appointed,  as- 
u^er  control signed,   transferred,   and  paid.     Every  such  warehouse 
shall  be  under  the  control  of  the  collector  of  internal 
in  joint  custody  re venue  of  the  district  in  which  such  warehouse  is  located, 
and  proprietor,    and  shall  be  in  the  joint  custody  of  the  storekeeper  and 
locked  or  opened  the  proprietor  thereof  and  kept  securely  locked,  and  shall 
except,  etc.         at  no  time  be  unlocked  or  opened  or  remain  open  except 
in  the  presence  of  such  storekeeper  or  other  person  who 
may  be  designated  to  act  for  him,  as  provided  in  the  case 
Regulations.     0f  distillery-warehouses.     And  such  warehouses  shall  be 
under  such  further  regulations  as  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of 
the  Treasury,  may  prescribe. 
1 1Wsn11rrnderia'y      ^EC*  ^'  That   every   distiller  of  brandy   from  grapes, 
montniy6  return^ upon  rendering  his  monthly  return  of  materials  used  and 
brandy7  inTonl  spirits  produced  by  him,  shall  immediately  pay  the  tax 
to  special  bonded  Up0n  such  spirits,  or  may,  after  they  have  been  properly 

wire  lion  so  *//  *j  »  -» 

gauged,  marked,  and  branded,  under  regulations  to  be 
prescribed  by  the  Commissioner  of  Internal  Revenue  and 
approved  by  the  Secretary  of  the  Treasury,  and  also 
stamped  as  hereinafter  provided,  cause  them  to  be  re- 
moved in  bond  from  the  place  of  manufacture  to  a  special 
bonded  warehouse,  under  such  regulations,  and  after 
making  such  entries,  and  executing  and  filing  with  the 
collector  of  the  district  in  which  such  spirits  were  manu- 
factured such  bonds  and  bills  of  lading,  and  giving  such 
other  additional  security  as  may  be  prescribed  by  the 
Commissioner  of  Internal  Revenue  and  approved  by  the 
Secretary  of  the  Treasury. 

Bond  to  be  conditioned  under  act  August  28, 1894,  for  payment 
of  tax  al  $]  Hi  per  gallon  within  eight  years  from  date  of  original 
gauge.     See  p.  18:5. 


DISTILLED   SPIRITS.  193 

Sec.  3.  That  all  brandy  intended  for  deposit  in  a  special  fl^Tefore6  re- 
bonded  warehouse,  before  being  removed  from  the  dis-movai. 
tillery,  shall  have  affixed  to  each  package  an  engraved 
stamp  indicative  of  such  intention,  to  be  provided  and 
furnished  to  the  several  collectors  as  in  the  case  of  other 
stamps,  and  to  be  charged  to  them  and  accounted  for  in 
the  same  manner.     *     *     * 

The  act  of  May  28,  1880  (21  Stat.,  145),  repealed  the  provision 
charging  10  cents  for  these  stamps. 

Sec.  4.  [as  amended  by  sec.  49,  act  of  Aug.  28,  1894  (28 
Stat. ,  509) .]   That  any  brandy  made  from  grapes  removed  in 
bond  according  to  law  may,  upon  its  arrival  at  a  special    now     brandy 
bonded  warehouse,   be  deposited  therein  upon  making  jnatne  warehouse' 
such  entries,  filing  such  bonds  and  other  securities,  and 
under  such  regulations  as  shall  be  prescribed  by  the  Com- 
missioner of  Internal  Revenue  with  the  approval  of  the 
Secretary  of  the  Treasury.     It  shall  be  one  of  the  condi-    Tax  .  shaii  be 
tions  of  the  warehousing-bond  covering  such  spirits  that  ^rsWfrom  date 
the  principal  named  in  said  bond  shall  pay  the  tax  on  the  of  original  gauge. 
spirits  as  specified  in  the  entry,  or  cause  the  same  to  be 
paid  within  eight  years  from  the  date  of  the  original 
gauging  of  the  same,  and  before  withdrawal,  except  as 
hereinafter  provided. 

Sec.  5.  That  any  brandy  made  from  grapes  may  bedr0^  °0nretYa!^ 
withdrawn  once  and  no  more  from  one  special  bonded  port  at  ion  to 
warehouse  for  transportation  to  another  special  bonded  housefr 
warehouse;  and  such  brandy  shall,  on  its  arrival  at  the 
second  special  bonded  warehouse,  be  immediately  entered 
therein,  from  which  warehouse  it  shall  be  withdrawn  only 
on  payment  of  the  tax  or  for  immediate  exportation.     I  ^  additional1  stamp 
case  the  brandy  withdrawn  is  intended  for  deposit  in  to  be  affixed, 
another  special  bonded  warehouse,  an  additional  stamp, 
indicative  of  such  intention,  shall  be  affixed  to  each  pack- 
age withdrawn,  as  in  the  case  of  brandy  withdrawn  from 
a  distillery  intended  to  be  so  deposited.     And  hi  case  the et^fonVxpona- 
brandy  is  intended  for  exportation,  an  engraved  stamp  Hon. 
indicative  of  such  intention,  shall  be  affixed  to  each  pack- 
age so  removed,  as  in  the  case  of  spirits  withdrawn  from    Pr°™ion^    °f 

o    ,      ...  iii  i  p  j_-  i         j.i       sec-   3330,    K.    b., 

a  distillery  bonded  warehouse  tor  exportation,  under  the  page  220,  made 
provisions  of  section  thirty-three  hundred  and  thirty,  aPP'lcable- 
Revised  Statutes:  all  the  provisions  of  which  section  not 
inconsistent  with  this  act  are  hereby  made  applicable  to 
such  withdrawals.     And  all  withdrawals  authorized  by  aisire^ol^made! 
law  of  grape-brandy  from  any  special  bonded  warehouse 
shall  be  upon  making  such  withdrawal  entries,  and  under 
such  regulations,  and  unless  the  withdrawal  is  upon  pay- 
ment of  tax,  upon  the  execution  of  such  bonds  and  biils 
of  lading  as  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  may  pre- 
scribe.     Export  bonds  given  under  the  provisions  of  this  ho^Snceied0 
act  shall  be  canceled  upon  the  production  of  such  certifi- 
cates of  landing  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may 

72170°— 11 13 


194  DISTILLED    SPIRITS. 

prescribe,  or  upon  proof  of  loss  at  sea  satisfactory  to  the 
sec>r322iOIR   s°f  Commissioner  of  Internal  Revenue.     And  the  provisions 
page  117,  as  to  of  existing  law  relative  to  an  allowance  of  loss  by  casualty 
maSdob"appiSicabie!  in  a  distillery  bonded  warehouse  are  hereby  made  appli- 
cable to  brand3r  stored  in  special  bonded  warehouses,  in 
accordance  with  the  provisions  of  this  act. 

As  to  regauge  of  spirits  withdrawn  from  warehouse,  allowance 
for  leakage,  etc.,  see  section  3294a  and  32946. 

freeo? t£uctation  ^ec.  ^-  That  the  provisions  of  existing  law  in  regard  to 
the  exportation  of  distilled  spirits  are  hereby  extended  so 
as  to  permit  the  exportation  from  special  bonded  ware- 
houses of  grape  brandy  free  of  tax  in  any  original  cask 
containing  not  less  than  twenty  gallons,  and  for  the  expor- 
tation of  grape  brandy  upon  which  all  taxes  have  been 
Drawback.  paid,  with  the  privilege  of  drawback  in  quantities  of  not 
less  than  one  hundred  gallons,  and  in  the  distillers'  original 
cask,  containing  not  less  than  twenty  nine  gallons  each. 

Twenty  wine  gallons  undoubtedly  intended,  instead  of 
"twenty  nine  gallons,"  as  in  the  act.  It  was  probably  an  error 
in  engrossing. 

See  section  3329,  page  217,  and  section  3330,  page  220. 

warehouse     SEC.  7.  That  whenever,  in  the  opinion  of  the  Commis- 
unued,  etc.  's      sioner  of  Internal  Revenue,  any  special  bonded  warehouse- 
is  unsafe  or  unfit  for  use,  or  the  merchandise  therein  is 
liable  to  loss  or  great  wastage,  he  may  discontinue  such 
warehouse,   and  require  the  merchandise  therein  to  be 
transferred  to  such  other  warehouse  as  he  may  designate, 
and  within  such  time  as  he  may  prescribe;  and  all  the 
sec.  .3272,  r.  s.,  provisions  of  section  thirty  two  hundred  and  seventy  two 
etc.,  mad" appii- of  the  Revised  Statutes  of  the  United  States,  relating  to 
cab,e-  transfers    of    spirits    from    warehouses,    including    those 

imposing  penalties,  are  hereby  made  applicable  to  trans- 
fers from  special  bonded  warehouses, 
when  tax  may      Sec.  8.  That  the  tax  upon  any  brandy  distilled  from 
collected  by  dis- grapes,  removed  from  the  place  where  it  was  distilled, 
tramt.  anj  m  reSpecf;  0f  which  any  requirement  of  this  act  is  not 

complied  with,  shall  at  any  time  when  knowledge  of  such 
fact  is  obtained  by  the  Commissioner  of  Internal  Revenue, 
be  assessed  by  him  upon  the  distiller  of  the  same,  and 
returned  to  the  collector,  who  shall  immediately  demand 
payment  of  such  tax,  and,  upon  the  neglect  or  refusal  of 
payment  by  the  distiller,  shall  proceed  to  collect  the  same 
by  distraint.  But  this  provision  shall  not  exclude  any 
other  remedy  or  proceeding  provided  by  law. 
paTd^ithtaeight  Sec.  9.  That  nothing  in  this  act  shall  be  construed  as 
years.  extending  the  time  in  which  the  tax  on  brandy  made  from 

grapes  shall  be  paid  beyond  three  [eight]  years  from  the  day 
on  which  the  taxable  quantity  is  ascertained  by  thegauger; 
Forfeiture.  and  all  brandy  made  from  grapes,  found  elsewhere  than  in 
a  distillery  or  special  bonded  warehouse,  not  having  been 
removed  therefrom  according  to  law,  and  all  brandy  on 
which  the  tax  has  not  been  paid  within  three  [eight]  years 


DISTILLED   SPIRITS.  195 

of  the  date  of  the  original  gauging  shall  be  forfeited  to  the 
United  States. 

Bonding  period  changed  from  three  years  to  eight  years  by 
section  49,  act  of  August  28,  1894.     (See  p.  193.) 

Sec.  10.  That  the  Commissioner  of  Internal  Revenue,  iJ52gn§SOIta£ 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  and  effect  ofiaw. 
make  all  needful  rules  and  regulations  for  carrying  into 
effect  the  provisions  of  this  act,  and  such  regulations  when 
made  shall  have  all  the  force  and  effect  of  law. 

Sec.  11.  That  in  case  any  grape  brandy  removed  f rom  [o f£na^  p™™- 
the  distillery  for  deposit  in  a  special  warehouse,  shall  fail  fenses  specified. 
to  be  deposited  in  such  warehouse  within  ten  days  there- 
after, or  within  the  time  specified  in  any  bond  given  on 
such  removal,  or  if  any  grape  brandy  deposited  in  any 
special  warehouse  shall  be  taken  therefrom  for  deposit  in 
another  warehouse,  or  for  export,  or  otherwise,  without 
full  compliance  with  the  provisions  of  this  act,  and  with 
the  requirements  of  any  regulations  made  thereunder,  and 
with  the  terms  of  any  bond  given  on  such  removal,  then 
any  person  who  shall  be  guilty  of  such  failure,  and  any 
person  who  shall  in  any  manenr  violate  any  provision  of 
this  act,  or  of  the  regulations  made  in  pursuance  thereof, 
shall  be  subject,  on  conviction,  to  a  fine  pf  not  less  than 
one  hundred  dollars  nor  more  than  five  thousand  dollars, 
and  to  imprisonment  for  not  less  than  three  months  nor 
more  than  three  years,  for  every  such  failure  or  violation; 
and  the  spirits  as  to  which  such  failure  or  violation  shall 
take  place  shall  be  forfeited  to  the  United  States. 

Proprietors  of  special  bonded  warehouses  may  (except  in  case 
of  tax-paid  withdrawals)  decline  to  deliver  brandy  stored  in 
such  warehouses  until  the  warehouse  receipts  issued  by  them 
are  surrendered,  where  the  surrender  of  such  receipts,  before 
delivery  of  the  spirits,  is  required  by  law.     (T.  D.  714.) 

AN  ACT  To  provide  for  warehousing  fruit  brandy. 
[Act  of  October  18,  1888  (25  Stat.,  560).] 

That  the  provisions  of  an  act  entitled  "An  act  relating  ^  ?Len^si° \°l 
to  the  production  of  fruit  brandy,  and  to  punish  frauds  of  March  3,  isn. 
connected  with  the  same,"  approved  March  third,  eighteen 
hundred  and  seventy-seven,  be  extended  and  made  appli- 
cable to  brandy  distilled  from  apples  or  peaches,  or  from 
any  other  fruit  the  brandy  distilled  from  which  is  not 
now  required  or  hereafter  shall  not  be  required  to  be 
deposited  in  a  distillery  warehouse:  Provided,  That  each 
of  the  warehouses  established  under  said  act,  or  which 
may  hereafter  be  established,  shall  be  in  charge  either  of 
a  storekeeper  or  of  a  storekeeper  and  gauger,  at  the  dis- 
cretion of  the  Commissioner  of  Internal  Revenue. 

Regulations,  No.  5,  revised — Concerning  special-bonded  ware- 
houses for  storage  of  brandy  made  from  apples,  peaches,  grapes, 
pears,  pineapples,  oranges,  apricots,  berries,  or  prunes,  exclu- 
sively. 

Storekeeper  and  gauger  is  now  styled  storekeeper-gauger.  Act 
of  June  28,  1902. 


196  DISTILLED    SPIRITS. 

iS&aS  Sec-  3295-  [Amended  by  act  of  July  16,  1892  (27  Stat, 
spirits  removed 201).]  Whenever  an  order  is  received  from  the  collector 
e'  for  the  removal  from  any  distillery  warehouse  of  any  cask 
of  distilled  spirits  on  which  tax  has  been  paid,  the  gauger 
by  whom  the  same  is  gauged  and  inspected  shall,  in  pres- 
ence of  the  storekeeper  and  before  such  cask  has  left  the 
warehouse,  place  upon  the  head  thereof,  in  such  manner 
as  to  cover  no  portion  of  any  brand  or  mark  prescribed 
b}'  law  already  placed  thereon,  a  stamp,  on  which  shall 
be  engraved  the  number  of  proof  gallons  contained  in 
said  cask  on  which  the  tax  has  been  paid,  and  which  shall 
state  the  serial  number  of  the  cask,  the  name  of  the  person 
b}?-  whom  the  tax  was  paid,  and  the  person  to  whom  and 
the  place  where  it  is  to  be  delivered.  Said  stamp  shall 
be  signed  by  the  collector  of  the  district,  the  storekeeper 
and  gauger,  and  shall  be  as  follows : 

Tax-paid  stamp,  No.  — . 

Received  — ,   18 — ,  from  ,   tax  on 

-  gallons  proof  spirit,  cask  No.  -    — ,  -         -  warehouse  at 
for  delivery  to ,  at . 


Collector District,  State  of 

Attest: 


United  States  Storekeeper. 


United  States  Gauger. 

And  at  the  time  of  affixing  the  tax-paid  stamp  the 
gauger  shall,  in  the  presence  of  the  storekeeper,  cut  or 
burn  upon  each  cask  the  name  of  the  distiller,  the  district, 
the  date  of  the  payment  of  the  tax,  the  number  of  proof- 
gallons,  and  the  number  of  the  stamp,  which  cutting  or 
burning  shall  be  erased  when  such  cask  is  emptied. 

The  last  words  of  section  3295,  namely,  "by  cutting  or  burn- 
ing a  canceling  line  across  such  marks  or  brands,"  were  struck 
out  by  amendatory  act  of  July  16,  1892. 

Alleged  infringement  of  patent  in  the  use  of  stamps.  (Fletcher 
v.  Blake,  27  Int.  Rev.  Rec,  6;  Hollister  v.  Benedict  and  Burn- 
ham  Manufacturing  Co.,  113  U.  S.,  59;  31  Int.  Rev.  Rec,  30.) 

Regulations  relative  to  the  signing  of  stamps.  (Regulations, 
No.  7,  pp.  114,  117,  L23,  132.) 

Regulations  concerning  the  affixing  of  stamps  to  heads  of 
spirit  packages.     (Circular  No.  535,  May  26,  1899.) 

In  the  case  of  spirit  packages,  the  heads  of  which  are  in  three 
parts,  the  Governmenl  stamp,  or  stamps,  required  to  be  placed 
upon  the  same,  will  be  affixed  across  a  joint,  or  joints,  of  the 
head  in  such  a  manner  that  each  stamp  shall  rest  over  a  joint 
at  about  the  middle  of  the  stamp,  and  so  that  the  center  piece 
of  the  head  may  not  be  removed  without  destroying  the  stamp 
or  stamps.     (Regulations,  No.  7,  p.  163.) 

Regulations  concerning  reduction  in  proof  of  distilled  spirits 
in  distillers'  original  packages.  (Regulations,  No.  7,  pp. 
190-195.) 

The  tax-paid  stamps  issued  by  collectors  for  the  payment  of 
taxes  on  distilled  spirits  are  nothing  more  than  receipts,  and 
are  worthless  as  receipts  to  other  parties  than  those  to  whom 
they  are  issued.  (Woolner  v.  United  States,  13  Ct.  Cls.,  355; 
24  Int.  Rev.  Rec,  181., 


DISTILLED   SPIBITS.  197 

Sec.  3296.  Whenever  any  person  removes,  or  aids  or  ce^emova1'  con- 
abets  in  the  removal  of  any  distilled  spirits  on  which  the  spirits    contrary 
tax  has  not  been  paid,  to  a  place  other  than  the  distillery tolaw:  Penaltv 
warehouse  provided  by  law,  or  conceals  or  aids  in  the 
concealment  of  any  spirits  so  removed,  or  removes,  or 
aids  or  abets  in  the  removal  of  any  distilled  spirits  from 
any  distillery  warehouse,  or  other  warehouse  for  distilled 
spirits  authorized  by  law,  in  any  manner  other  than  is 
provided  by  law,  or  conceals  or  aids  in  the  concealment 
of  any  spirits  so 'removed  he  shall  be  liable  to  a  penalty  of 
double  the  tax  imposed  on  such  distilled  spirits  so  removed 
or  concealed,  and  shall  be  fined  not  less  than  two  hundred 
dollars  nor  more  than  five  thousand   dollars,   and  im- 
prisoned not  less  than  three  months  nor  more  than  three 
years. 

Sections  3256,  3279,  3299,  3450. 

Aiding  or  abetting.  (United  States  v.  Blaisdell  et  al.,  9  Int. 
Rev.  Rec,  82.) 

A  conviction,  under  section  329G,  for  removing  distilled  spirits 
to  a  place  other  than  a  distillery  warehouse,  or  concealing  them 
there  contrary  to  law,  is  not  a  bar  to  a  conviction  under  section 
3281  for  illicit  distilling,  because  the  same  are  different  offenses; 
and  the  question  of  being  twice  in  jeopardy,  within  the  Consti- 
tution, amendment  5,  does  not  arise.  (United  States  v.  Three 
Copper  Stills,  etc.  (1890),  47  Fed.  Rep.,  495.) 

The  fact  that  the  statute  makes  the  aiding  and  abetting  of 
another  in  the  removal  of  illicit  spirits  a  distinct  offense  does  not 
prevent  a  person  so  aiding  and  abetting  from  being  convicted  as 
a  principal  in  the  removal,  under  the  rule  making  all  partici- 
pants in  misdemeanors  liable  as  principals.  (United  States  v. 
Sykes,  58  Fed.  Rep.,  1000.)     Sec.  332,  Criminal  Code,  p.  110. 

An  indictment  under  this  section  for  the  concealment  of  dis- 
tilled spirits  on  which  the  tax  has  not  been  paid,  removed  to  a 
place  other  than  the  distillery  warehouse  provided  by  law, 
which  charges  the  performance  of  that  act  at  a  particular  time 
and  place,  and  in  the  language  of  the  statutes  is  sufficiently 
certain.     (Pounds  v.  United  States,  171  U.  S.,  35.) 

See  United  States  v.  Smith,  27  Fed.  Rep.,  854. 

(Pilcher  v.  U.  S.,  113  Fed.  Rep.,  248;  U.  S.  v.  Harries,  26  Fed. 
Cas.,  166,  No.  15309;  U.  S.  v.  Nunnemacher,  27  Fed.  Cas.,  197, 
No.  15902.) 

Bond  may  be  sued  for  these  penalties.  (United  States  v. 
Chouteau,  102  U.  S.,  603;  27  Int.  Rev.  Rec,  49.) 

Sec.  3297.  The  Secretary  of  the  Treasury  is  authorized    Alcohol    wjth- 
to  grant  permits  to  any  incorporated  or  chartered  scien-  fm  "purposes'™" 
tific  institution  or  college  of  learning  to  withdraw  alcohol  |.h.ir7'redtedinst0i- 
in  specified  quantities  from  bond  without  payment  of  the  tutions. 
internal-revenue  tax  on  the  same,  or  on  the  spirits  from 
which  the  alcohol  has  been  distilled,  for  the  sole  purpose 
of  preserving  specimens  of  anatomy,  physiology,  or  nat- 
ural history  belonging  to  such  institution,  or  for  use  in  its 
chemical  laboratory:  Provided,  That  application  for  per- 
mits shall  be  made  by  the  president  or  curator  of  such  in- 
stitution, who  shall  file  a  bond  for  double  the  amount  of 
the  tax  on  the  alcohol  to  be  withdrawn,  with  two  good  and 
sufficient  sureties,  to  be  approved  by  the  Commissioner  of 
Internal  Revenue,  and  conditioned  that  the  whole  quan- 
tity of  alcohol  so  withdrawn  from  bond  shall  be  used  for 


198  DISTILLED    SPIRITS. 

the  purposes  above  specified,  and  for  no  other,  and  that 
t  he  said  president  or  curator  shall  comply  with  such  other 
requirements   and  regulations   as   the   Secretary   of   the 
Penalty.  Treasury  may  prescribe.     And  if  any  alcohol  so  obtained 

is  used  by  any  officer,  as  aforesaid,  of  such  institution  for 
any  purposes  other  than  that  above  specified,  then  the 
said  officer  or  sureties  shall  pay  the  tax  on  the  whole 
amount  of  alcohol  withdrawn  from  bond,  together  with  a 
like  amount  as  a  penalty  in  addition  thereto. 
Aicohoi  with-  [Sec.  3297a].  [Act  of  May  3,  1878  {20  'Stat,  48)].  That 
tmcTpurposes'by tne  Secretary  of  the  Treasury  be,  and  is  hereby  authorized 
institutions  not  to  grant  permits,  as  provided  for  in  section  thirty-two 
incorporated.  hundred  and  ninety-seven  of  the  Revised  Statutes  of  the 
United  States  passed  at  the  first  session  of  the  Forty-third 
Congress,  to  any  scientific  university,  or  college  of  learn- 
ing created  and  constituted  such  by  any  State  or  Terri- 
tory under  its  laws,  though  not  incorporated  or  chartered, 
upon  the  same  terms  and  subject  to  the  same  restrictions 
and  penalties,  already  provided  by  said  section  thirty-two 
hundred  and  ninety-seven:  Provided  further,  That  the 
bond  required  thereby  may  be  executed  by  any  officer  of 
such  university  or  college,  or  by  any  other  person  for  it, 
and  on  its  behalf,  with  two  good  and  sufficient  sureties, 
upon  like  conditions,  and  to  be  approved  as  by  said  sec- 
tion is  provided. 

Regulations,  No.  7,  Revised,  p.  238,  and  Revised  Circular, 
January  14,  1908;  Dept.  No.  5. 

See  section  3464,  page  367. 

Alcohol  is  the  only  kind  of  spirit  that  can  be  used  free  of  tax 
for  scientific  purposes.     (T.  D.  21664,  1899). 

Alcohol  classified  and  branded  as  "commercial  alcohol''  may 
be  withdrawn  from  bond,  free  of  tax,  under  the  provisions  of 
section  3297,  for  scientific  purposes.     (T.  D.  1483,  Apr.  14, 1909.) 

Power  of  offi-  Sec.  3298.  It  shall  be  lawful  for  an}'  internal-revenue 
packages  on^sus-  officer  to  detain  any  cask  or  package  containing,  or  sup- 
i|i(ion-  posed  to  contain,  distilled  spirits,  when  he  has  reason  to 

believe  that  the  tax  imposed  by  law  upon  the  same  has 
not  been  paid,  or  that  the  same  is  being  removed  in  viola- 
tion of  law;  and  every  such  cask  or  package  may  be  held 
by  him  at  a  safe  place  until  it  shall  be  determined  whether 
the  property  so  detained  is  liable  by  law  to  be  proceeded 
against  for  forfeiture;  but  such  summary  detention  shall 
not  continue  in  any  case  longer  than  forty-eight   hours 
without  process  of  law  or  intervention  of  the  officer  to 
whom  such  detention  is  to  be  reported. 
^  Forfeiture     of     Sec.  3299.   All  distilled  spirits  found  elsewhere  than  in  a 
^  removed  from  distillery  or  distillery  warehouse,  not  having  been  removed 
therefrom  according  to  law,  shall  be  forfeited  to  the  United 
Act   Feb.    K  States. 

If  agent  is  cognizant  of  fraud  at  time  of  purchase,  the  principal 
i-  bound.  Confusion  and  mixture  of  goods  by  rectification. 
(Harrington's  Distilled  Spirits,  11  Wall.,  356;  L3  Int.  Rev.  Rec, 

193.) 

Burden  of  proof.  (Sec.:;:::;:;.]).  L"_'r>.  United  States  v. Eight 
(  asks  of  Whisky,  7  Int.  Rev.  Rec.,  4.) 


DISTILLED    SPIRITS.  199 

Sec.  3300.  Whenever  any  store-keeper  or  other  person  un^*°r^jkeePer 
in  the  employment  of  the  United  States,  having  charge  of  moving1  spirits  ror 
a  bonded  warehouse,  removes  or  allows  to  be  removed ^remo^ed™6^.0 
therefrom  any  cask  or  other  package,  without  an  order  or 
permit  of  the  collector,  or  which  has  not  been  marked  or 
stamped  in  the  manner  required  by  law,  or  removes  or 
allows  to  be  removed  any  part  of  the  contents  of  any  cask 
or  package  deposited  therein,  he  shall  be  immediately  dis-    penaity. 
missed  from  office  or  employment,  and  be  fined  not  less 
than  five  hundred  dollars  nor  more  than  two  thousand 
dollars,  and  imprisoned  not  less  than  three  months  nor 
more  than  two  years. 

Sec.  3301  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  (20  store-keepers' 
Stat.,  327)].  Every  storekeeper  shall  keep  a  warehouse  book" 
book,  which  shall  at  all  times  be  open  to  the  examination 
of  any  revenue  officer,  and  shall  enter  therein  an  account 
of  all  articles  deposited  in  the  warehouse  to  which  he  is 
assigned,  indicating  in  each  case  the  date  of  deposit,  by 
whom  manufactured  or  produced,  the  number  and  descrip- 
tion of  the  packages  and  contents,  the  quantities  therein, 
the  marks  and  serial  numbers  thereon,  and  by  whom 
gauged,  inspected,  or  weighed,  and  if  distilled  spirits,  the 
number  of  gauge  or  wine  gallons,  of  proof-gallons,  and  of 
taxable  gallons;  and  before  delivering  any  article  from 
the  warehouse  he  shall  enter  in  said  book  the  date  of  the 
permit  or  order  of  the  collector  for  the  delivery  of  such 
articles,  the  number  and  description  of  the  packages,  the 
marks  and  serial  numbers  thereon,  the  date  of  delivery, 
to  whom  delivered,  and  for  what  purpose,  which  purpose 
shall  be  specified  in  the  permit  or  order  for  delivery;  and 
in  case  of  delivery  of  any  distilled  spirits  the  number  of 
gauge  or  wine  gallons,  of  proof-gallons,  and  of  taxable 
gallons  shall  also  be  stated;  and  such  further  particulars 
shall  be  entered  in  the  warehouse-books  as  may  be  pre- 
scribed or  found  necessary  for  the  identification  of  the 
packages,  to  insure  the  correct  delivery  thereof  and 
proper  accountability  therefor. 

And  every  store-keeper  shall  furnish  daily  to  the  col-  store -keepers' 
lector  of  the  district  a  return  of  all  articles  received  in  and  ports. 
delivered  from  the  warehouse  during  the  day  preceding 
that  on  winch  the  return  is  made,  and  mail  at  the  same 
time  a  copy  thereof  to  the  Commissioner  of  Internal  Rev- 
enue, and  shall,  on  the  first  Monday  of  every  month, 
make  a  report  in  duplicate  of  the  number  of  packages  of 
all  articles,  with  the  respective  descriptions  thereof,  as 
above  provided,  which  remained  in  the  warehouse  at  the 
date  of  Ins  last  report,  of  all  articles  received  therein  and 
delivered  therefrom  during  the  preceding  month,  and  of 
articles  remaining  therein  at  the  end  of  said  month.  He 
shall  deliver  one  of  these  reports  to  the  collector  having 
control  of  the  warehouse,  to  be  recorded  and  filed  in  his 
office,  and  transmit  one  to  the  Commissioner  of  Internal 
Revenue,  to  be  recorded  and  filed  in  his  office. 

The  reports  made  by  a  distiller,  or  by  storekeepers  or  other 
officers,  to  a  collector  under  the  internal-revenue  laws  are  in  no 


200  DISTILLED   SPIRITS. 

sense  public  records,  but  are  executive  documents,  which  the 
United  States  in  its  sovereign  capacity  has  acquired  for  the 
sole  purpose  of  administering  its  own  governmental  affairs,  and 
are  its  private  property,  the  custody  and  use  of  which  the  Secre- 
tary of  the  Treasury,  has  the  lawful  authority  to  control  by 
proper  regulations.  (In  re  Comingore,  collector  (1899),  96  Fed. 
Rep.,  552;  T.  D.  21584;  Boske  v.  Comingore,  177  U.  S.,  459,  T. 
D.  104.) 

store -keepers     gEC-  3302.  The  store-keeper  assigned  to  any  distillery 

to  n*ivp  cli'ir^t*  oi  •  *^ 

distillery  "and  warehouse  shall,  in  addition  to  the  duties  required  of  him 
ma&i^ounused! as  store-keeper  in  charge  of  a  warehouse,  keep  in  a  book 
etc-  to  be  provided  for  that  purpose,  and  in  the  manner  pre- 

scribed by  the  Commissioner  of  Internal  Revenue,  a  daily 
account  of  all  the  meal  and  vegetable  productions  or  other 
substances  brought  into  said  distillery,  or  on  said  premises, 
to  be  used  for  the  purpose  of  producing  spirits,  from  whom 
purchased,  and  when  delivered  at  said  distillery;  of  the 
kind  and  quantity  of  all  fuel  used,  and  from  whom  pur- 
chased; of  all  repairs  made  on  said  distillery,  and  by 
whom  and  when  made;  of  the  names  and  places  of  resi- 
dence of  all  persons  employed  in  or  about  the  distillery; 
of  the  materials  put  into  the  mash-tub  or  otherwise  used 
for  the  production  of  spirits;  of  the  time  when  any  fer- 
menting-tub  is  emptiecf  of  ripe  mash  or  beer,  recording 
the  same  by  the  number  painted  on  said  tub;  and  of  all 
spirits  drawn  off  from  the  receiving-cistern,  and  the  time 
when  the  same  were  drawn  off. 

Examination  of  grain  distilleries  and  duties  of  examining  offi- 
cers.    (Cir.  No.  612.     T.  D.  439.) 

Records  at  registered  distilleries. — Collectors  are  instructed  to 

five  personal  attention  to  records  kept  by  storekeepers  and  store- 
eeper-gaugers,  particularly  grain  account  and  temperature  and 
gravity  reports.     (T.  D.  1628.) 

bookSstentiiesr'to  ^ec.  3303.  Every  person  who  makes  or  distills  spirits, 
be  made.  or  owns  any  still,  boiler,  or  other  vessel  used  for  the  pur- 

pose of  distilling  spirits,  or  who  has  such  still,  boiler,  or 
other  vessel  so  used  under  his  superintendence,  either  as 
agent  or  owner,  or  who  uses  any  such  still,  boiler,  or  other 
vessel,  shall  from  day  to  day  make,  or  cause  to  be  made, 
in  a  book  or  books,  to  be  kept  by  him  in  such  form  as  the 
Commissioner  of  Internal  Revenue  may  prescribe,  a  true 
and  exact  entry  of  the  kind  of  materials,  and  the  quantity 
in  pounds,  bushels,  or  gallons  purchased  by  him  for  the 
production  of  spirits,  from  whom  and  when  purchased, 
and  by  what  conveyance  delivered  at  said  distillery,  the 
amount  paid  therefor,  the  kind  and  quantity  of  fuel  pur- 
chased for  use  in  the  distillery,  and  from  whom  purchased, 
the  amount  paid  for  ice  or  water  for  use  in  the  distillery, 
the  repairs  placed  on  said  distillery  or  distilling-apparatus, 
the  cost  thereof,  and  by  whom  and  when  made,  and  of  the 
name  and  residence  of  each  person  employed  in  or  about 
the  distillery,  and  in  what  capacity  employed.  And  in 
another  book  he  shall  make  like  entry  of  the  quantity  of 
grain  or  other  material  used  for  the  production  of  spirits, 
the  time  of  day  when  any  yeast  or  other  composition  is 
put  into  any  mash  or  beer  for  the  purpose  of  exciting 


DISTILLED   SPIRITS.  201 

fermentation,  the  quantity  of  mash  in  each  tub,  designat- 
ing the  same  by  the  number  of  the  tub,  the  number  of  dry 
inches,  that  is  to  say,  the  number  of  inches  between  the 
top  of  each  tub  and  the  surface  of  the  mash  or  beer  therein 
at  the  time  of  yeas  ting,  the  gravity  and  temperature  of 
the  beer  at  the  time  of  yeasting,  and  on  every  day  there- 
after its  quantity,  gravity,  and  temperature  at  the  hour 
of  twelve  meridian ;  also,  of  the  time  when  any  ferment  ing- 
tub  is  emptied  of  ripe  mash  or  beer,  the  number  of  gallons 
of  spirits  distilled,  the  number  of  gallons  placed  in  the 
warehouse,  and  the  proof  thereof,  the  number  of  gallons 
sold  or  removed,  with  the  proof  thereof,  and  the  name, 
place  of  business,  and  residence  of  the  person  to  whom 
sold. 

Sec.    3304.  The   books   of   every   distiller  hereinafter    Books    to   be 
required  shall  always  be  kept  at  the  distillery  and  be tumand preser£ 
always  open  to  the  inspection  of  any  revenue  officer,  and, ed  two  years- 
when  filled  up,  shall  be  preserved  by  the  distiller  for  a 
period  of  not  less  than  two  years  thereafter,  and  whenever 
required  shall  be  produced  for  the  inspection  of  any  rev- 
enue officer. 

The  books  of  a  distiller  required  by  law  to  be  kept  can  be 
seized  and  used  as  evidence.  "The  United  States  have  the  right 
to  demand  then  production  without  judicial  process  for  all 
purposes  connected  with  the  revenue  liabilities  of  the  distillers 
or  the  distilleries. "  (Waite,  C.  J.,  in  the  United  States  Circuit 
Court,  Eastern  District  of  Virginia.  United  States  v.  A  Distillery 
at  Petersburg,  1  Hughes,  533;  22  Int.  Rev.  Rec,  195.) 

Distillers'  books.  Every  book  kept  by  a  distiller  is,  to  a  cer- 
tain extent,  a  Government  book,  and  may,  under  the  law,  be 
rightfully  examined  by  the  revenue  officers  to  determine  its 
correctness.  (United  States  v.  Parker,  Mason  &  Co.,  and  Roelle, 
Junker  &  Co.,  21  Int.  Rev.  Rec,  245;  6  Biss.,  350.) 

Private  books  and  papers  seized  at  distillery  can  be  used  as 
evidence  in  proceedings  to  forfeit  distillery.  (Dobbins  v.  United 
States,  24  Int.  Rev.  Rec,  22;  96  U.  S.,  395.) 

Sec.  3305.  Whenever  any  false  entry  is  made  in,  or  any  01^{.fng  tTkeep 
entry  required  to  be  made  is  omitted  from,  either  of  the  or  produce  books; 
said  books  mentioned  in  the  two  preceding  sections,  with 
intent  to  defraud  or  to  conceal  from  the  revenue  officers 
any  fact  or  particular  required  to  be  stated  and  entered  in 
either  of  said  books,  or  to  mislead  in  reference  thereto ;  or 
any  distiller  as  aforesaid  omits  or  refuses  to  provide  either 
of  said  books,  or  cancels,  obliterates,  or  destro}Ts  any  part 
of  either  of  such  books,  or  any  entry  therein,  with  intent 
to  defraud,  or  permits  the  same  to  be  done,  or  such  books, 
or  either  of  them,  are  not  produced  when  required  by  any 
revenue  officer,  the  distillery,  distilling-apparatus,  and  the 
lot  or  tract  of  land  on  which  it  stands,  and  all  personal 
property  on  said  premises  used  in  the  business  there  car- 
ried on,  shall  be  forfeited  to  the  United  States.  And 
every  person  who  makes  such  false  entry,  or  omits  to  make 
any  entry  hereinbefore  required  to  be  made,  with  intent 
aforesaid,  or  who  causes  or  procures  the  same  to  be  done, 
or  fraudulently  cancels,  obliterates,  or  destroys  any  part 
of  said  books,  or  any  entry  therein,  or  willfully  fails  to 


202  DISTILLED    SPIRITS. 

produce  such  books,  or  either  of  them,  shall  be  fined  not 
less  than  five  hundred  dollars,  nor  more  than  five  thousand 
dollars,  and  imprisoned  not  less  than  six  months,  nor 
more  than  two  years. 

See  United  States  v.  One  Water  Cask,  10  Int.  Rev.  Ree.,  93; 
United  States  v.  Stowell,  133  U.  S.,  1;  36  Int.  Rev.  Rec,  30.) 

using  false     Sec.  3306.  Every  person  who  knowingly  uses  any  false 
mel;  penaity!eas"  weights  or  measures  in  ascertaining,  weighing,  or  meas- 
uring the  quantities  of  grain,  meal,  or  vegetable  materials, 
molasses,  beer,  or  other  substances  to  be  used  for  distilla- 
tion, shall  be  fined  not  less  than  five  hundred  dollars  nor 
more  than  five  thousand  dollars,  and  imprisoned  not  less 
using  unresjs- than  one  year  nor  more  than  three  years.     Any  person 
penalty.  '  who  uses  any  molasses,  beer,  or  other  substance,  whether 

fermented  on  the  premises  or  elsewhere,  for  the  purpose 
of  producing  spirits,  before  an  account  of  the  same  is 
registered  in  the  proper  book  provided  for  that  purpose, 
shall  forfeit  and  pay  the  sum  of  one  thousand  dollars  for 
each  offense  so  committed. 

Distiller's  bond,  suit  to  recover  penalty.     (U.  S.  v.  Zemel,  137 
Fed.  Rep.,  989.) 

tuS!f  ofers'rodu£  ^EG-  33°7-  On  the  first  day  of  each  month,  or  within 
tion'to  collector,  five  days  thereafter,  every  distiller  shall  render  to  the  col- 
lector of  the  district  an  account  in  duplicate,  taken  from 
his  books,  stating  the  quantity  and  kind  of  materials  used 
for  the  production  of  spirits  each  day,  and  the  number  of 
wine-gallons  and  of  proof-gallons  of  spirits  produced  and 
placed  in  warehouse.  And  the  distiller  or  the  principal 
manager  of  the  distillery  shall  make  and  subscribe  the 
following  oath,  to  be  attached  to  said  return : 

"I, ,  distiller  (or  principal  manager,  as  the  case  may 

be)  of  the  distillery  at ,  do  solemnly  swear  that,  since  the  date 

of  the  last  return  of  the  business  of  said  distillery,  dated day 

of to day  of  -  ,  both  inclusive,  there  was  produced 

in  said  distillery,  and  withdrawn  and  placed  in  warehouse,  the  num- 
ber of  wine-gallons  and  proof-gallons  of  spirits;  and  there  were  actually 
mashed  and  used  in  said  distillery,  and  consumed  in  the  production 
of  spirits  therein,  the  several  quantities  of  grain,  sugar,  molasses,  and 
other  materials  respectively  hereinbefore  specified,  and  no  more.  " 

One  of  the  said  duplicate  returns  shall  be  transmitted 
by  the  collector  to  the  Commissioner  of  Internal  Revenue. 

Fruit  distillers'  returns,  Form  15.     (Regulations  No.  7,  p.  215.) 

Distillers'  re-  Sec.  3308.  Every  distiller  shall  make  a  return  of  the 
bSQofb^eis'^Ilumber  °f  barrels  of  spirits  distilled  by  him,  counting 
tilled-  fort\*  gallons  of  proof-spirits  to  the  barrel,  whenever  such 

return  is  demanded  by  the  collector  of  the  district. 
Monthly  ex-     Sec.  3300,  as  amended.     On  the  receipt  of  the  distiller's 
;''u'r '' "' "".ri'linl ',  return  in  each  month,  the  Commissioner  of  Internal  Ileve- 
assessments.etc.  nue  shall  inquire  and  determine  whether  the  distiller  has 
accounted  for  ;i!l  the  grain  or  molasses  used,  and  all  the 
capacity  tax.    spirits  produced  by  him  in  the  preceding  month.     If  he  is 
satisfied  that  the  distiller  has  reported  all  the  spirits  pro- 
duced by  him,  and  the  quantity  so  reported  is  found  to  be 


DISTILLED    SPIRITS.  203 

less  than  eighty  per  centum  of  the  proclucing-capacity  of 
the  distillery  as  estimated  according  to  law,  he  shall  make 
an  assessment  for  such  deficiency  at  the  rate  of  ninety 
cents  for  every  proof-gallon.     In  determining  the  quan-m^endment 
tity  of  grain  used,  fifty-six  pounds  shall  be  accounted  as  act  Mar.  3,  1875 
a  bushel;  and  if  the  Commissioner  finds  that  the  distiller (lgStat'402)- 
has  used  any  grain  or  molasses  in  excess  of  the  capacity 
of  his  distillery  as  estimated  according  to  law,  he  shall 
make  an  assessment  against  the  distiller  at  the  rate  of  3  ^gj^/jg *$*£• 
ninety  cents  for  every  proof-gallon  of  spirits  that  should  462)^  Amend" 
have  been  produced  from  the  grain  or  molasses  so  usedment" 
in  excess,  which  assessment  shall  be  made  whether  the 
quantity  of  spirits  reported  is  equal  to  or  exceeds  eighty 
per  centum  of  the  producing-capacity  of  the  distillery. 
If  the  Commissioner  finds  that  the  distiller  has  not  ac- 
counted for  all  the  spirits  produced  by  him,  he  shall,  from 
all  the  evidence  he  can  obtain,  determine  what  quantity 
of  spirits  was  actually  produced  by  such  distiller,  and  an3  s1|%12(f8ets^1!1tr- 
assessment  shall  be  made  for  the  difference  between  the  462).   Am  end- 
quantity  reported  and  the  quantity  shown  to  have  been11 
actually  produced,  at  the  rate  of  ninety  cents  for  every 
proof-gallon:   Provided,    That   the   actual   product   shall 
be  assumed  to  be  in  no  case  less  than  eighty  per  centum 
of  the  producing-capacity  of  the  distillery  as  estimated 
according  to  law.     All  assessments  made  under  this  sec- 
tion shall  be  a  lien  on  all  distilled  spirits  on  the  distillery 
premises,  the  distillery  used  for  distilling  the  same,  the 
stills,  vessels,  fixtures,  and  tools  therein,  the  tract  of  land 
whereon  the  said  distillery  is  located,  and  any  building 
thereon,  from  the  time  such  assessment  is  made  until  the 
same  shall  have  been  paid. 

When  a  fruit  distiller  has  received  pomace,  in  the  absence  of 
any  explanation  otherwise  accounting  for  it,  it  is  justifiable  to 
infer  that  the  material  was  used  in  the  production  of  spirits  at 
the  rate  of  1  gallon  to  14  gallons  of  pomace.  (United  States  v. 
Cole,  134  Fed.  Rep.,  697;  T.  D.  786.) 

It  is  well  settled  that  a  distiller  is  legally  liable  to  a  tax  on  his 
entire  actual  product,  and  on  a  quantity  equal  at  least  to  80  per 
centum  of  the  producing  capacity  of  his  distillery  as  fixed  by  the 
survey,  however  small  the  actual  product  may  be.  (Unit*  i 
States  v.  Singer,  15  Wall.,  Ill;  17  Int.  Rev.  Rec,  9.  Collector  v. 
Beggs,  17  Wall.,  182;  17  Int.  Rev.  Rec,  164.  United  States  v. 
Ferrary  et  al.,  93  U.  S.,  625;  22  Int.  Rev.  Rec,  394.) 

Construction  of  the  statute  and  method  of  computation.  ( Stoll 
v.  Pepper,  97  U.  S.  (7  Otto),  438;  25  Int.  Rev.  Rec,  2.  Weitxel  v.. 
Rabe,  103  U.  S.,  340.  See  also  United  States  v.  Nissley,  1  Dillon, 
586;  13  Int.  Rev.  Rec,  174.  Pahlman  v.  Collector,  20  Wall.,  189; 
19  Int.  Rev.  Rec,  171.     Turner  v.  Williams,  18  Int.  Rev.  Rec,  6.) 

The  producing  capacity  of  a  distillery,  and  not  the  amount  of 
spirits  produced,  is  made  the  measure  of  taxation.  (II.  S.  v. 
Halloran,  14  Blatch.,  1;  Fed.  Cas.  No.  15,  286.)  _ 

In  a  suit  for  taxes  under  section  3309  the  original  assessment 
list  signed  by  the  Commissioner  is  evidence  of  assessment,  and 
the  original  report  of  survey  and  certificate  of  collector  of  deliv- 
ery of  triplicate  copy  to  distiller  are  competent  evidence. 
United  States  v.  Bristow,  20  Fed.  Rep.,  378.)  _ 

If  a  distiller  uses  material  for  distillation  in  excess  of  the 
estimated  capacity  of  his  distillery  according  to  the  survey,  but, 
in  the  regular  course  of  his  business,  pays  the  tax  upon  his 


204  DISTILLED   SPIRITS. 

entire  production,  he  can  not  be  again  assessed  the  regular 
gallon  tax  on  the  spirits  which  the  excess  of  material  used  should 
have  produced.  (Runkle  v.  Citizens'  Insurance  Co.  of  Pitts- 
burg, Pa.,  6  Fed.  Rep.,  143.) 

The  provision  under  this  section  that  if  the  Commissioner  of 
Internal  Revenue,  on  making  a  monthly  examination  of  a  dis- 
tiller's return,  "finds  that  the  distiller  has  used  any  grain  or 
molasses  in  excess  of  the  capacity  of  his  distillery  as  estimated 
according  to  law,  he  shall  make  an  assessment  against  the  dis- 
tiller," etc.,  refers  to  the  real  average  spirit-producing  capacity 
of  the  distillery,  and  not  to  a  fictitious  capacity  for  any  particu- 
lar dav  or  days.  (Chicago  Distilling  Co.  v.  Stone,  140  U.  S., 
647;  37  Int.  Rev.  Rec,  206.) 

See  on  this  section  Stowell  v.  Williams,  jr.,  17  Int.  Rev.  Rec, 
38;  Daly  v.  United  States,  16  Int.  Rev.  Rec,  147;  Hartman  v. 
Bean,  99  U.  S.,  393;  25  Int.  Rev.  Rec,  141. 

The  distiller  is  required  to  produce  at  least  80  per  cent  of  the 
producing  capacity  of  his  distillery. 

If  he  uses  defective  fruit  or  material  from  which  he  can  not 
produce  80  per  cent,  he  does  so  with  full  knowledge  that  he  will 
be  assessed  on  the  basis  of  80  per  cent  of  his  producing  capacity. 
(U.  S.  v.  Ball,  1908,  163  Fed.  Rep.,  504.) 

ses^nl'entsT  &  [Sec-  3309a.]  [Sec.  6,  act  of  Mar.  1,  1879  (20  Stat.,  327), 
fictodes,  etc.,  in  amended  by  sec.  8,  act  of  May  28,  1880  (21  Stat.,  Ij5). 
That  whenever,  under  the  provisions  of  section  thirty- 
three  hundred  and  nine  of  the  Revised  Statutes,  an  assess- 
ment shall  have  been  made  against  a  distiller  for  a  defi- 
ciency in  not  producing  eighty  per  centum  of  the  produc- 
ing capacity  of  his  distillery  as  established  by  law,  or  for 
the  tax  upon  the  spirits  that  should  have  been  produced 
from  the  grain,  or  fruit,  or  molasses  found  to  have  been 
used  in  excess  of  the  capacity  of  his  distillery  for  any 
month,  as  estimated  according  to  law,  such  excessive  use 
of  grain,  or  fruit,  or  molasses  having  arisen  from  a  failure 
on  the  part  of  the  distiller  to  maintain  the  capacity  re- 
quired by  law  to  enable  him  to  use  such  grain,  or  fruit,  or 
molasses  without  incurring  liability  to  such  assessment, 
and  it  shall  be  made  to  appear  to  the  satisfaction  of  the 
Commissioner  of  Internal  Revenue  that  said  deficiency, 
or  that  said  failure,  whereby  such  excessive  use  of  grain, 
molasses,  or  fruit  arose,  was  not  occasioned  by  any  want 
of  diligence  or  by  any  fraudulent  purpose,  on  the  part  of 
the  distiller,  but  from  misunderstanding  as  to  the  require- 
ments of  the  law  and  regulations  in  that  respect  or  by 
reason  of  unavoidable  accidents,  then,  and  in  such  case, 
the  Commissioner  of  Internal  Revenue,  subject  to  regu- 
lations prescribed  by  the  Secretary  of  the  Treasury  is 
authorized,  on  appeal  made  to  him,  to  remit  or  refund 
such  tax,  or  such  part  thereof  as  shall  appear  to  him  to 
be  equitable  and  just  in  the  premises. 
or^therec4auaUyC  ^!*^  ^e  Commissioner  of  Internal  Revenue  upon  the  pro- 
"  d action  to  Mm  of  satisfactory  proof  of  the  actual  destruction, 
by  accidental  fire  or  other  casualty  any  without  any  fraud, 
collusion,  or  negligence  of  the  distiller  of  any  spirits  in  pro- 
cess of  manufacture  or  distillation,  or  before  removal  to  the 
distillery  warehouse,  shall  not  assess  the  distiller  for  a 
difcii  nryin  not  producing  eighty  per  centum  of  the  produc- 
ing capacity  of  Ms  distillery  as  established  by  law  when  the 


DISTILLED   SPIRITS.  205 

deficiency  is  occasioned  by  such  destruction,  nor  shall  he,  in 
such  case,  assess  the  tax  on  the  spirits  so  destroyed: 

Provided,  That  no  tax  shall  be  remitted  or  refunded 
under  the  provisions  of  this  section  upon  any  assessment 
made  prior  to  January  first,  eighteen  hundred  and 
seventy-four : 

Provided  further,  That  no  assessment  shall  be  charged fJ?Jstillerso/ 

•/..      ...   '       .  .       .     .  ...  .  .     o.       fruit     exempt 

against  any  distiller  ol  fruit  lor  any  failure  to  maintain  the  from  such  assess- 
required  capacity,  unless  the  Commissioner  shall,  within  mc!n         cep  ' 
six  months  after  his  receipt  of  each  monthly  report  notify 
such  distiller  of  such  failure  so  to  maintain  the  required 
capacity. 

U.  S.  v.  Ball  (C.  C.  A.),  163  Fed.  Rep.,  504. 

Assessment. — No  distiller  of  fruit  brandy  to  be  reported  for 
assessment  on  account  of  brandy  produced  and  unaccounted  for 
until  determination  of  taxes  due  under  section  3309,  Revised 
Statutes,  nor  until  due  notice  is  given  the  distiller  as  required  by 
regulations.     (T.  D.,  1555.)     October  27,  1909. 

Statutory  relief  in  cases  of  assessments  under  this  section. 
(Regulations  No.  7,  Revised,  1908,  pp.  87-92.) 

[Sec.  33096.]  [See.  60,  act  of  Aug.  28,  1894  (28  Stat.,  Rate  of  tax. 
509).]  That  all  assessments  made  under  the  provisions 
of  section  thirty-three  hundred  and  nine  of  the  Revised 
Statutes  of  the  United  States,  and  Acts  amendatory 
thereof,  shall  be  at  the  rate  of  tax  imposed  by  this  Act 
on  each  proof  gallon. 

Sec.  3310  [as  amended  by  act  of  Feb.  27,  1877  (19  Stat,  Fermenting  Pe- 
240),  and  sec.  7,  act  of  May  28,  1880  (21  Stat,  145)].  Thenod- 
first  fermenting  period  of  every  distiller  shall  be  talcen  to 
begin  on  the  day  the  distiller's  bond  is  approved;  and  every 
distiller  at  the  hour  of  twelve  meridian  on  the  last  day  of 
such  fermenting  period,  or  at  the  same  hour  on  any  previous 
day  of  such  fermenting  period  on  which  spirits  are  distilled, 
shall  be  deemed  to  have  commenced,  and  thereafter  to  be 
continuously  engaged  in,  the  production  of  distilled 
spirits  in  his  distillery,  except  in  the  intervals  when  he 
shall  suspend  work  as  hereinafter  provided. 

Any  distiller  desiring  to  suspend  work  in  his  distillery  suspension  of 
may  give  notice  in  writing  to  the  collector  of  the  district, 
stating  when  he  will  suspend  work;  and  on  the  day  men- 
tioned in  said  notice  said  collector  or  one  of  his  deputies 
shall,  at  the  expense  of  the  distiller,  proceed  to  fasten 
securely  the  door  of  every  furnace  of  every  still  or  boiler  in 
said  distillery,  by  locks  and  otherwise,  and  shall  adopt 
such  other  means  as  the  Commissioner  of  Internal 
Revenue  may  prescribe  to  prevent  the  lighting  of  any  fire 
in  such  furnace  or  under  such  stills  or  boilers.  The  locks 
and  seals,  and  other  materials  required  for  such  purpose, 
shall  be  furnished  to  the  collector  by  the  Commissioner  of 
Internal  Revenue,  to  be  duly  accounted  for  by  said  col- 
lector. Such  notice  by  any  distiller,  and  the  action  taken 
by  the  collector  in  pursuance  thereof,  shall  be  immediately 
transmitted  to  the  Commissioner  of  Internal  Revenue. 
No  distiller,  after  having  given  such  notice,  shall,  after 
the  time  stated  therein,  carry  on  the  business  of  a  distiller. 


206  DISTILLED    SPIRITS. 

on  said  premises  until  he  gives  another  notice  in  writing 

to  said  collector,  stating  the  time  when  he  will  resume 

work;    and  at  the  time  so  stated  for  resuming  work  the 

collector   or   one    of   his    deputies    shall    attend    at    the 

distillery  to  remove  said  locks  and  other  fastenings;   and 

thereupon,  and  not  before,  work  may  be  resumed  in  said 

distillery,  which  fact  shall  be  immediately  reported  to  the 

collector  of  the  district,  and  by  him  transmitted  to  the 

Commissioner  of  Internal  Revenue. 

businLrsyaf  t  er     Every  distiller  who,  after  the  time  fixed  in  said  notice 

notice  of  suspen- declaring  his  intention  to  suspend  work,  carries  on  the 

slon"  business  of  a  distiller  on  said  premises,  or  has  mash,  wort, 

or  beer  in  his  distillery,  or  on  any  premises  connected 

therewith,  or  has  in  his  possession  or  under  his  control  any 

mash,  wort,  or  beer,  with  intent  to  distill  the  same  on  said 

premises,  shall  incur  the  forfeitures  and  be  subject  to  the 

32ooenalties:   se°'  same  punishment  as  provided  for  persons  who  carry  on  the 

business  of  a  distiller  without  having  given  the  bonds 

required  by  law. 

causedPbySuna-     But  nothing  in  this  section  shall  be  held  to  apply  to 

v o i <i a b l e  acei- suspensions   caused   by  unavoidable   accident;    and   the 

verbal  amend- Commissioner  of  Internal  Revenue  shall  prescribe  regula- 

^ei877Act-  ]L'b-tions  to  govern  such  cases  of  involuntary  suspension. 

A  distiller  has  one  full  fermenting  period  to  prepare  his  mash 
or  beer  for  distillation,  and  the  liability  to  the  80  per  cent 
capacity  commences  on  the  last  day  of  such  period,  or  on  any 
previous  day  on  which  spirits  arc  distilled.  (Regulations  No.  7, 
Revised,  p.  56.) 

When  a  nominal  change  shall  occur  at  a  distillery,  by  reason 
of  a  change  in  the  name  or  style  in  which  the  operations  at  the 
distillery  are  conducted,  it  will  not  be  required  that  the  business 
of  producing  spirits  shall  be  completely  finished  and  operations 
suspended  by  the  distiller  desiring  to  change  his  name  or  style 
before  the  business  shall  be  undertaken  or  begun  by  him  under 
a  different  name  or  style;  nor  will  he  be  required  to  give  notice 
of  suspension  upon  Form  124.     (Regulations  No.  7,  p.  11.) 

Reduction    of     Sec  3311.  Whenever  any  distiller  desires  to  reduce  the 

producing-capacity  of  his  distillery,  he  shall  give  notice  of 
such  intention,  in  writing,  to  the  collector,  stating  the 
quantity  of  spirits  which  he  desires  thereafter  to  manu- 
facture, or  produce  every  twenty-four  hours,  and  there- 
upon said  collector  shall  proceed,  at  the  expense  of  the 
•  list  iller,  to  reduce  and  limit  the  producing-capacity  of  the 
distillery  to  the  quantity  stated  in  said  notice,  by  placing 
upon  a  sufficient  number  of  the  ferment ing-tubs  close- 
fitting  covers,  which  shall  be  securely  fastened  by  nails, 
seals,  and  otherwise,  and  in  such  manner  as  to  prevent  the 
use  of  such  tubs  without  removing  said  covers  or  breaking 
said  seals,  and  shall  adopt  such  other  precautions  as  may 
be  prescribed  by  the  Commissioner  of  Internal  Revenue 
to  reduce  the  capacity  of  said  distillery. 
with  iocksretc^  ^'H'  cverv  person  who  breaks,  injures,  or  in  any  manner 
dty.  tampers  with  any  lock,  seal,  or  other  fastening  applied  to 

any  furnace,  still,  or  fermen ting-tub,  or  other  vessel,  in 
pursuance  of  the  provisions  of  law,  or  who  opens  or 
attempts  bo  open  airy  door,  tub,  or  other  vessel,  which  is 


DISTILLED    SPIRITS.  207 

locked  or  sealed,  or  otherwise  closed  or  fastened  as  herein 
provided,  or  who  uses  any  furnace,  still,  or  fermenting- 
tub,  or  other  vessel,  which  is  so  locked,  sealed,  or  fastened, 
shall  be  deemed  guilty  of  a  felony,  and  shall  be  fined  not 
less  than  one  thousand  dollars  nor  more  than  five  thou- 
sand dollars,  and  imprisoned  for  not  less  than  one  year 
nor  more  than  three  years.     (Sec.  3268,  R.  S.) 

Weitzel  v.  Rabe  (103  U.  S.,  340). 

Sec.  3312.  All  stamps  required  for  distilled  spirits  shall  pJjSs'an£0j£ 
be  engraved  in  their  several  lands  in  book-form,  and  shall  sued. 
be  issued  by  the  Commissioner  of  Internal  Revenue  to  any 
collector,  upon  his  requisition,  in  such  numbers  as  may  be 
necessary  in  the  several  districts.  Each  stamp  shall  have 
an  engraved  stub  attached  thereto,  with  a  number  thereon 
corresponding  with  an  engraved  number  on  the  stamp, 
and  the  stub  shall  not  be  removed  from  the  book.  And 
there  shall  be  entered  on  each  stub  such  memoranda  of  the 
contents  of  its  corresponding  stamp  as  shall  be  necessary 
to  preserve  a  perfect  record  of  the  use  of  such  stamp  when 
detached. 

Traffic  in  and  possession  of  internal-revenue  stamps.     (11  Int. 
Rev.  Rec,  57.) 
Counterfeiting  stamps.     (Sec.  5414,  Appendix,  p.  420.) 

Sec.  3313.  On  every  stamp  for  the  payment  of  tax  on  of  stamper  orm 
distilled  spirits  there  shall  be  engraved  words  and  figures 
representing  a  decimal  number  of  gallons,  and  on  the  stub 
corresponding  to  such  stamp  there  shall  be  engraved  a 
similar  number  of  gallons,  and  between  the  stamp  and  the 
stub,  and  connecting  them,  shall  be  engraved  nine  cou- 
pons, which,  beginning  next  to  the  stamp,  shall  indicate 
in  succession  the  several  numbers  of  gallons  between  the 
number  named  in  the  stamp  and  the  decimal  number  next 
above.  And  whenever  any  collector  receives  the  tax  on 
the  distilled  spirits  contained  in  any  cask,  he  shall  detach 
from  the  book  a  stamp  representing  the  denominate 
quantity  nearest  to  the  quantity  of  proof-spirits  in  such 
cask,  as  shown  by  the  gauger's  return,  with  such  number 
of  the  coupons  attached  thereto  as  shall  be  necessary  to 
make  up  the  whole  number  of  proof-gallons  in  said  cask; 
*  *  *  All  unused  coupons  shall  remain  attached  to  the 
marginal  stub,  and  no  coupon  shall  have  any  value  or 
significance  when  detached  from  the  stamp  and  stub. 
And  the  tax-paid  stamps  with  the  coupons  may  denote 
such  number  of  gallons,  not  less  than  twenty  [ten],  as  the 
Commissioner  of  Internal  Revenue  may  deem  advisable. 

Part  indicated  by       *    *    *    obsolete.     Section  48,  act  of 
August  28,  1894.     See  section  3251. 


Fractional  gallons.     (See  sec. 
The  act  of  May  28,  1880,  amenc 
vided  for  original  packages  of  a  c 


3251a],  p.  151.) 

ing  section  32S7,  page  178,  pro- 

istiller  of  not  less  than  10  wine 


gallons'  capacity,  thus  modifying  the  last  clause  of  the  above 
section  without  specifically  amending  it. 

The  tax-paid  stamps  issued  by  collectors  for  the  payment  of 
taxes  on  spirits  are  nothing  more  than  receipts,  and  are  worth- 


208  DISTILLED    SPIRITS. 

less  as  receipts  to  other  parties  than  those  to  whom  they  are 
issued.  (A.  &  S.  Woolner  v.  United  States,  13  Ct.  Cls.  355;  24 
Int.  Rev.  Rec.,  181.)  . 

Tax-paid  spirit  stamps  containing  coupons  for  the  fractional 
parts  of  a  gallon.  (Circular  Letter  of  Dec.  21,  1894;  40  Int. 
Rev.  Rec,  405.) 

Accountability     Sec.  3314  [amended  by  act  of  Mar.  1 ,  1879  (20  Stat.,  327) , 

for  stamp-books.    ^  ^  ^    ^  ^^  ^  ^    ^  (^    ^  ^)  1       The 

books  of  tax-paid  stamps  issued  to  any  collector  shall  be 
charged  to  his  account  at  the  full  value  of  the  tax  on  the 
number  of  gallons  represented  on  the  stamps  and  coupons 
contained  in  said  books;  and  every  collector  shall  make  a 
monthly  return  to  the  Commissioner  of  Internal  Revenue 
of  all  tax-paid  stamps  issued  by  him  to  be  affixed  to  any 
cask  or  package  containing  distilled  spirits  on  which  the 
tax  has  been  paid,  and  account  for  the  amount  of  the  tax 
collected;  and  when  the  said  collector  returns  to  the  Com- 
missioner of  Internal  Revenue  any  book  of  marginal  stubs, 
which  it  shall  be  Ins  duty  to  do  as  soon  as  all  the  stamps 
contained  in  the  book  when  issued  to  him  have  been  used, 
and  accounts  for  the  tax  on  the  number  of  gallons  repre- 
sented on  the  stamps  and  coupons  that  were  contained  in 
said  book,  there  shall  be  allowed  to  the  collector  a  com- 
commissions.    mission  of  one-half  of  one  per  centum  on  the  amount  of 
such  tax,  in  addition  to  any  other  commission  by  law  al- 
lowed: Provided,  That  the  total  net  compensation  of  col- 
lectors as  fixed  by  this  title  shall  not  be  thereby  increased. 
All  stamps  relating  to  distilled  spirits,  other  than  the  tax- 
paid   stamps,    shall   be   charged   to  collectors;    and    the 
books  containing  such  stamps  may  be  intrusted  by  any 
collector  to  the  ganger  of  the  district,  who  shall  make  a 
daily  report  to  the  collector  of  all  such  stamps  used  by 
him  and  for  whom  used;  and  when  all  the  stamps  con- 
tained in  any  such  book  have  been  issued,  the  gauger  of 
the  district  shall  return  the  book  to  the  collector,  with  all 
Export  stamps,  the  marginal  stubs  therein:  Provided,  That   all   export 
stamps  issued  to  collectors  shall  be  charged  to  them  as 
representing  the  value  of  ten  cents  for  each  stamp,  and 
they  shall  collect  the  amount  due  for  such  stamps  at  the 
rate  of  ten  cents  for  each  stamp  issued  in  such  manner  and 
at  such  time  as  the  Commissioner  of  Internal  Revenue 
may  prescribe,  and  the  Commissioner  may,  in  his  discre- 
tion, make  assessment  therefor. 

The  stamps  having  a  money  value  are  as  follows,  viz:  Tax- 
paid,  $1.10  per  gallon;  case  stamps  for  spirits  bottled  in  bond, 
10  cents  each,  and  exportation  stamps  for  spirits  in  original 
casks,  10  cents  each,  and  for  spirits  in  wooden  packages,  each 
containing  two  or  more  metallic  cans,  each  having  a  capacity 
of  not  less  than  5  gallons  wine  measure,  5  cents  each.  (Reg- 
ulations No.  7,  revised,  p.  113,  sec.  3330,  p.  220;  act  Mar.  3, 
1897,  p.  234;  act  Feb.  21,  1899,  p.  178. 

In  United  States  v.  Landram  (118  U.  S.,  81;  32  Int.  Rev.  Rec. 
151)  it  was  held  that  the  right  of  collectors  to  commissions  on 
taxes  collected  by  the  sale  of  tax-paid  spirit  stamps  was  not 
taken  from  them  by  section  2,  act  of  March  1,  1879  (sec.  3148, 
amended,  p.  63). 

Circular  No.  306.  Collectors'  commissions  on  sale  of  tax-paid 
spirit  stamps  (32  Int.  Rev.  Rec,  325). 


DISTILLED    SPIRITS.  209 

Sec.  3315  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879  ^^l*™^ 
(20  Stat.,  327).}    The  Commissioner  of  Internal  Revenue  tobacco,    cigars', 
may,  under  regulations  prescribed  by  him  with  the  appro- Tn^  ffiSS 
val  of  the  Secretary  of  the  Treasury,  issue  stamps  for  re-  liciuors. 
stamping  packages  of  distilled  spirits,   tobacco,   cigars, 
snuff,  cigarettes,  and  fermented  liquors  which  have  been 
duly  stamped,  but  from  which  the  stamps  have  been  lost 
or  destroyed  by  unavoidable  accident. 

Redemption  of  stamps  (p.  331). 

Restamping  packages  of  spirits,  tobacco,  cigars,  snuff,  ciga- 
rettes, fermented  liquors,  and  denatured  alcohol.  (Cir.  No.  705, 
Sept.  6,  1907;  T.  D.  1226.) 

Packages  of  fermented  liquors  may  be  restamped  under  direc- 
tion of  the  collector.     T.  D.     1672. 

Amending  regulations  No.  7,  concerning  restamping  of  pack- 
ages of  spirits  from  which  stamps  have  been  lost  or  destroyed 
by  unavoidable  accident.     (T.  D.,  1532,  Aug.  13,  1909.) 

Sec.  3316.  Whenever   any   revenue   officer   affixes    or    officer  using,  or 
cancels,  or  causes  or  permits  to  be  affixed  or  canceled, mittmg    use1 'J 
any  stamp  relating  to  distilled  spirits  provided  for  by  stamps  contrary 
law,  in  any  other  manner  or  in  any  other  place,  or  issues 
the  same  to  any  other  person  than  as  provided  by  law, 
or  by  regulation  made  in  pursuance  thereof,  or  knowingly 
affixes,  or  permits  to  be  affixed,  any  such  stamp  to  any 
cask  or  package  of  spirits  of  which  the  whole  or  any  part 
has  been  distilled,  rectified,   compounded,   removed,   or 
sold,  in  violation  of  law,  or  which  has  in  any  manner 
escaped  payment  of  tax  due  thereon,  he  shall,  for  every    penaity. 
such  offense,  be  fined  not  less  than  five  hundred  dollars 
nor  more  than  three  thousand  dollars,  and  be  imprisoned 
for  not  less  than  six  months  nor  more  than  three  years. 

[Sec.  3316a,]  [Sec.  17,  act  Feb.  S,  1875  (IS  Stat,  307).]    Affixing    imi- 
That  if  any  person  shall  affix,  or  cause  to  be  affixed,  to  or|SgJf™fpd?£ 
upon  any  cask  or  package  containing,  or  intended  to  con-  tilled  spirits. 
tain,  distilled  spirits,  any  imitation  stamp  or  other  en- 
graved, printed,  stamped,  or  photographed  label,  device, 
or  token,  whether  the  same  be  designed  as  a  trade  mark, 
caution  notice,  caution,  or  otherwise,  and  which  shall  be 
in  the  similitude  or  likeness  of,  or  shall  have  the  resem- 
blance or  general  appearance  of,   any  internal-revenue 
stamp  required  by  law  to  be  affixed  to  or  upon  any  cask  or 
package  containing  distilled  spirits,   he  shall,   for  each    Penalty. 
offense,  be  liable  to  a  penalty  of  one  hundred  dollars,  and, 
on  conviction,  shall  be  fined  not  more  than  one  thousand 
dollars,  and  imprisoned  not  more  than  three  years,  and 
the  cask  or  package  with  its  contents  shall  be  forfeited  to 
the  United  States. 

The  statute  prohibits  the  use  of  any  device  in  the  similitude 
of,  or  having  the  general  appearance  of,  a  stamp  required  by  the 
internal-revenue  laws  for  distilled  spirits.  The  Commissioner  of 
Internal  Revenue  has  not  adopted  a  standard  as  to  what  devices 
of  this  kind  are  allowable  and  what  are  prohibited.     (T.  D.  507.) 

Wholesale  liquor  dealers  and  rectifiers  who  place  such  stamps 
on  packages  containing  distilled  spirits  must  do  so  at  their  own 
risk  if  thev  are  in  any  wise  in  the  similitude  of  stamps  required 
for  spirits.'    (T.  D.  559.) 

72170°— 11 14 


210 


DISTILLED   SPIRITS. 


Rectifiers' 
turns. 


Rectifiers 
tending  to 
fraud. 


Penalties. 


Rectifiers'  no- 
tice of  intention 
to  rectify. 


Gauging. 


re*  Sec.  3317  [as  amended  by  sec.  5,  act  of  Mar.  1,  1879 
(20  Stat.,  327).]  That  on  or  before  the  tenth  day  of  each 
month  every  person  engaged  in  rectifying  or  compound- 
ing distilled  spirits  shall  make,  in  such  form  as  may  be 
prescribed  by  the  Commissioner  of  Internal  Revenue,  a 
return  to  the  collector  of  the  district,  showing  the  quan- 
tity of  spirits  received  for  rectification,  and  from  whom 
received,  the  quantity  dumped  for  rectification,  the  quan- 
tity rectified,  the  quantity  removed  after  rectification 
during  the  preceding  month,  and  giving  such  other  in- 
formation as  may  be  required  by  the  Commissioner  of 
Internal  Revenue,  such  return  to  be  made  in  duplicate 
and  sworn  to  by  the  rectifier;  and  the  collector  shall  for- 
ward one  of  such  returns  to  the  Commissioner  of  Internal 
Revenue. 

££  Every  person  who  engages  in,  or  carries  on,  the  business 
of  a  rectifier  with  intent  to  defraud  the  United  States  of 
the  tax  on  the  spirits  rectified  by  him,  or  any  part  thereof, 
or  with  intent  to  aid,  abet,  or  assist  any  person  or  persons 
in  defrauding  the  United  States  of  the  tax  on  any  distilled 
spirits,  or  who  shall  purchase  or  receive  or  rectify  any  dis- 
tilled spirits  which  have  been  removed  from  a  distillery  to 
a  place  other  than  the  distillery- warehouse  provided  by 
law,  knowing  or  having  reasonable  grounds  to  believe  that 
the  tax  on  said  spirits,  required  by  law,  has  not  been  paid, 
shall,  for  every  such  offense,  be  fined  not  less  than  one 
thousand  dollars  nor  more  than  five  thousand  dollars,  and 
imprisoned  not  less  than  six  months  nor  more  than  two 
years. 

As  to  employee  swearing  to  returns.  (32  Int.  Rev.  Rec,  165, 
T.  D.1046.) 

Carrying  on  business  as  rectifiers,  with  intent  to  defraud. 
(Sprinkle  v.  U.  S.,  141  Fed.  Rep.,  811;  Angle  v.  TJ.  S.,  162  ibid, 
264;  U.  S.  v.  Byrne,  7  Fed.  Rep.,  963.) 

[Sec.  3317a,]  [Amended  by  act  of  July  16, 1892  (27  Stat., 
200) .]  When  any  rectifier  intends  to  rectify  or  compound 
any  distilled  spirits  he  shall,  before  emptying  any  package 
of  distilled  spirits  for  that  purpose,  give  notice  in  dupli- 
cate to  the  collector  of  internal  revenue  for  the  district  of 
his  intention  so  to  rectify,  and  submit  such  package  for 
the  inspection  of  a  United  States  ganger,  who  shall  duly 
weigh  or  gauge  such  package  and  its  contents  and  make 
due  return  thereof,  and  such  spirits  shall  not  be  emptied 
for  rectification,  nor  rectified  or  compounded  in  the  pack- 
age, until  gauged  or  weighed  as  herein  above  provided. 
And  such  notice  and  return  shall  be  made  in  such  form 
and  contain  such  particulars  as  the  Commissioner  of  In- 
ternal Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  from  time  to  time  prescribe. 

Penalty.     (See  sec.  3323,  R.  S.,  amended.) 

Regulations  concerning  marking,  reporting,  and  accounting 
for  sweetened  spirits  at  rectifying  houses. 
pp.  100,  105,  109,  111.) 

Addition  of  caramel  or  burnt  sugar.     (T. 


(Regulations,  No.  7, 
D.  1306.) 


DISTILLED    SPIRITS.  211 

Sec.  3318  [as  amended].  Every  rectifier  and  wholesale  kept0bykresct*flere 
liquor-dealer  shall  provide  a  book,  to  be  prepared  and  and  wholesale 
kept  in  such  form  as  may  be  prescribed  by  the  Commis- dealers' 
sioner  of  Internal  Revenue,  and  shall,  on  the  same  day  on 
which  he  receives  any  foreign  or  domestic  spirits,  and 
before  he  draws  off  any  part  thereof,  or  adds  water  or  any- 
thing thereto,  or  in  any  respect  alters  the  same,  enter  in 
such  book,  and  in  the  proper  columns  respectively  pre- 
pared for  the  purpose,  the  date  when,  the  name  of  the 
person  or  firm  from  whom,  and  the  place  whence  the 
spirits  were  received,  by  whom  distilled,  rectified,  or  com- 
pounded, and  when  and  by  whom  inspected,  and,  if  in 
the  original  package,  the  serial  number  of  each  package, 
the  number  of  wine-gallons  and  proof-gallons,  the  kind  of 
spirit,  and  the  number  and  kind  of  adhesive  stamps 
thereon.  And  every  such  rectifier  and  wholesale  dealer 
shall,  at  the  time  of  sending  out  of  his  stock  or  possession 
any  spirits,  and  before  the  same  are  removed  from  his 
premises,  enter  in  like  manner  in  said  book  the  day  when 
and  the  name  and  place  of  business  of  the  person  or  firm 
to  whom  such  spirits  are  to  be  sent,  the  quantity  and  kind 
or  quality1  of  such  spirits,  the  number  of  gallons  and  frac- 
tions of  a  gallon  at  proof,  and,  if  in  the  original  packages 
in  which  they  were  received,  the  name  of  the  distiller  and 
the  serial  number  of  the  package.  Every  such  book  shall 
be  at  all  times  kept  in  some  public  or  open  place  on  the 
premises  of  such  rectifier  or  wholesale  dealer  "for  inspec- 
tion, and  any  revenue  officer  may  examine  it  and  take  an 
abstract  therefrom;  and  when  it  has  been  filled  up  as 
aforesaid,  it  shall  be  preserved  by  such  rectifier  or  whole- 
sale liquor-dealer  for  a  period  not  less  than  two  years; 
and  during  such  time  it  shall  be  produced  by  him  to  every 
revenue  officer  demanding  it. 

And  whenever  any  rectifier  or  wholesale  liquor-dealer    Penalties. 
refuses  or  neglects  to  provide  such  book,  or  to  make  en- 
tries therein  as  aforesaid,  or  cancels,  alters,  obliterates,  or 
destroys  any  part  of  such  book,  or  any  entry  therein,  or 
makes  any  false  entry  therein,  or  hinders  or  obstructs  any  lg^,rt   Feb-   27> 
revenue  officer  from  examining  such  book,  or  making  any 
entry  therein,  or  taking  any  abstract  therefrom;  or  when- 
ever such  book  is  not  preserved  or  is  not  produced  by  any 
rectifier  or  wholesale  liquor-dealer  as  hereinbefore  directed, 
he  shall  pay  a  penalty  of  one  hundred  dollars,  and  shall  on  ls^fc   Feb-   27> 
conviction  be  fined  not  less  than  one  hundred  dollars  nor 
more  than  five  thousand  dollars,  and  imprisoned  not  less 
than  three  months  nor  more  than  three  years. 

That  every  person  required  to  keep  the  books  prescribed  by1^5'^oiut.', 
this  section  shall,  on  or  before  the  tenth  day  of  each  month,  327.) 
make  a  full  and  complete  transcript  of  all  entries  made  in    Transcripts. 
such  book  during  the  month  preceding,  and,  after  verifying 
the  same  by  oath,  shall  forward  the  same  to  the  collector  of  the 

»  This  word  "  quality  "  is  erroneously  printed  "  quantity  "  in  the  Revised  Statutes, 
"edition  of  1878." 


212  DISTILLED    SPIRITS. 

Penalty.  district  in  which  he  resides.  Any  failure  by  reason  of  refusal 
or  neglect  to  make  said  transcripts  shall  subject  the  person  so 
offending  to  a  fine  of  one  hundred  dollars  for  each  neglect  or 
refusal. 

Law  construed  and  applied .  Where  parties  are  both  wholesale 
and  retail  dealers  in  the  same  place.  (United  States  v.  Malone, 
8  Ben.,  574;  22  Int.  Rev.  Rec,  403.) 

Importers  must  keep  the  wholesale  liquor  dealers'  book. 
(United  States  v.  McCullough,  22  Ink  Rev.  Rec,  202.) 

Recovery  of  penalty  of  $100  in  a  civil  action  no  bar  to  criminal 
proceedings.  (Case  of  Leszynsky,  25  Int.  Rev.  Rec,  71;  16 
Blatch.,  9.) 

The  duty  of  making  entries  in  the  book  may  be  delegated  to  a 
clerk,  but  the  dealers  and  rectifiers  are  responsible  if  the  proper 
entries  are  not  made.  (United  States  v.  50  Barrels  Whisky,  11 
Int.  Rev.  Rec,  94;  U.  S.  v.  Amann,  Fed.  pas.  No.  14438.) 

Oath  should  be  made  by  the  principal  instead  of  employee. 
(32  Int.  Rev.  Rec,  165.) 

Verification  of  returns.     (T.  D.  Xos.  1039,  1046,  1212,  1646.) 

Forms  52  A  and  122.     (T.  D.,  1626.) 

Revision  of  Form  45.     (T.  D.  353,  June  3,  1901.) 

A  wholesale  liquor  dealer  who  deals  exclusively  in  wines  or 
malt  liquors  not  required  to  keep  the  book.  (13  Int.  Rev.  Rec'., 
161.) 

In  an  indictment  under  this  section  it  is  not  necessary  to  spec- 
ify the  name  of  the  person  to  whom,  or  the  place  where,  the  casks 
were  sent.  That  is  a  matter  of  evidence.  (Williams  v.  U.  S.,  158 
Fed.  Rep.,  30.) 

Indictment  under  section  3318.  (U.  S.  v.  Miller,  14  Blatch., 
93,  Fed.  Cas.  No.  15771.) 

The  statute  refers  only  to  wholesale  dealers  in  spirits.  A  whole- 
sale dealer  in  malt  liquors  is  not  required  to  keep  the  book. 
(U.  S.  v.  Reagan,  Fed.  Cas.  No.  16128;  15  Int.  Rev.  Rec,  8.) 

Transcripts  must  be  filed.  (Brown  v.  Harkins,  131  Fed. 
Rep.,  63.) 

Cases  of  whisky  bottled  in  bond  should  be  entered  on  book 
Form  52.     (T.  D.  808;  Regs.  No.  23,  revised,  p.  23.) 

It  is  not  necessary  for  a  person  qualifying  as  rectifier,  for  the 
sole  purpose  of  rectifying  for  other  persons,  to  qualify  as  whole- 
sale liquor  dealer.  How  book  Form  52  should  be  kept.  (T.  D. 
640.) 

[Sec.  3318a.]     [Sec.  62,  act  of  Aug.  28,  1894  (®8  Stat., 
509). \     That  no  distiller  who  has  given  the  required  bond 
and  who  sells  only  distilled  spirits  of  his  own  production 
at  the  place  of  manufacture,  or  at  the  place  or  storage  in 
bond,  in  the   original  packages   to  winch  the   tax-paid 
stamps  are  affixed",  shall  be  required  to  pay  the  special  tax 
of  a  wholesale  liquor  dealer  on  account  of  such  sales: 
Distiller  re- Provided,  That  he  shall  be  required  to  keep  the  book  pre- 
book.d  sec  33i1f  scribed  by  section  thirty- three  hundred  and  eighteen  of 
R-s.  'the  Revised  Statutes  of  the  United  States,  or  so  much 

as  shall  show  the  date  when  he  sent  out  any  spirits,  the 
serial  numbers  of  the  packages  containing  same,  the  kind 
and  quality  of  the  spirits  in  wine  gallons  and  taxable  gal- 
lons, the  serial  numbers  of  the  stamps  on  the  packages, 
and  the  name  and  residence  of  the  person  to  whom  sent; 
and  the  provisions  of  section  live  of  an  Act  entitled  "An 
Act  to  amend  the  laws  relating  to  internal  revenue"  ap- 
proved March  fifth,  eighteen  hundred  and  seventy-nine, 
as  to  transcripts,  shall  apply  to  such  books.     Any  failure, 


DISTILLED    SPIRITS.  213 

by  reason  of  refusal  or  willful  neglect,  to  furnish  the  trans- 
cript by  him  shall  subject  the  spirits  owned  or  distilled  by 
him  to  forfeiture. 

Sec.  3319.  It  shall  not  be  lawful  for  any  rectifier  of  dis-qi2^aJ^J 
tilled  spirits,  or  wholesale  or  retail  liquor-dealer,  to  pur-er  than  20  gai- 

-1  1  '■  VJ.-111         •    *j.      •  j-"j.-  j.       Ions  from  one  per- 

cnase  or  receive  any  distilled  spirits  m  quantities  greater  son,  etc. 
than  twenty  gallons  from  any  person  other  than  an  au- 
thorized rectifier  of  distilled  spirits,  distiller,  or  wholesale 
liquor-dealer.  Every  person  who  violates  this  section 
shall  forfeit  and  pay  one  thousand  dollars:  Provided,  Penalty. 
That  this  provision  shall  not  be  held  to  apply  to  judicial 
sales,  or  to  sales  at  public  auction  made  by  an  auctioneer. 

The  exception  made  in  this  proviso  is  extended  to  certain 
other  sales  by  section  4,  act  of  March  1,  1879,  amending  section 
3244,  paragraph  5,  page  139. 

If  a  rectifier  purchases  from  an  authorized  distiller,  who  is  not 
an  authorized  rectifier  or  an  authorized  wholesale  liquor  dealer, 
distilled  spirits,  in  quantities  greater  than  20  gallons,  which  were 
not  produced  by  such  authorized  distiller,  such  purchaser  is 
liable  to  the  penalty  imposed  by  section  3319.  (The  New  York 
Rectifying  Co.  v.  United  States,  14  Blatch.,  549.) 

Held,  That  the  word  "receive"  as  used  in  this  section  means 
receive  for  sale,  and  that  where  a  retail  dealer  receives  more  than 
20  gallons  of  spirits  from  any  person  other  than  one  authorized 
by  the  act  to  sell  such  spirits,  for  storage  only,  and  not  for  sale,  he 
does  not  incur  the  penalty.  (United  States  v.  Fridenberg,  11 
Int.  Rev.  Rec,  5.) 

Sec.  3320  [as  amended  by  act  of  July  16,  1892  (27  Stat.,st^g^ot  £j 
183),  and  as  further  amended  by  sec.  66,  act  of  Aug.  28, 189 %  tmed  spirits. 
(28  Stat.,  509) .]  Whenever  any  cask  or  package,  contain- 
ing five  wine  gallons  or  more,  is  filled  for  shipment,  sale, 
or  delivery  on  the  premises  of  any  rectifier  who  has  paid 
the  special  tax  required  by  law,  it  shall  be  inspected  and 
gauged  by  a  United  States  gauger  whose  duty  it  shall  be 
to  mark  and  brand  the  same  and  place  thereon  an  engraved 
stamp,  which  shall  state  the  date  when  affixed  and  the 
number  of  proof  gallons,  and  shall  be  in  such  form  as  shall 
be  prescribed  by  the  Commissioner  of  Internal  Revenue 
with  the  approval  of  the  Secretary  of  the  Treasury:  Pro- 
vided, That  when  such  cask  or  package  is  filled  on  the 
premises  of  a  rectifier  rectifying  less  than  five  hundred 
barrels  a  year,  counting  forty  gallons  of  proof  spirits  to  the 
barrel,  it  may  be  gauged,  marked,  branded,  and  stamped 
by  a  United  States  gauger,  or  it  may  be  gauged,  marked, 
branded,  and  stamped  by  the  rectifier,  as  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury,  may  by  regulations  prescribe. 

The  act  of  July  20,  1868,  imposed  a  tax  of  25  cents  each  on 
stamps  for  rectified  spirits  and  wholesale  liquor  dealers'  packages. 

This  rate  was  in  force  until  August  1,  1872.  (Act  of  June  6, 
1872.) 

The  act  of  June  6,  1872,  reduced  the  price  of  these  stamps  to  10 
cents,  which  continued  until  the  taking  effect  of  the  act  of  May 
28, 1880,  since  which  time  no  charge  has  been  made  for  rectifiers' 
or  wholesale  liquor  dealers'  stamps.  (Commissioner's  reports, 
1905,  p.  5;  1910,  p.  18.) 

Rectified  spirits  stamps  must  be  signed  by  gaugers  on  the  date 
they  affixed  them.     (40  Int.  Rev.  Rec,  413.) 


214  DISTILLED   SPIRITS. 

Regulations  concerning  the  gauging  and  marking  of  distilled 
spirits  at  rectifying  houses.  (Regulations,  No.  7,  pp.  179-183. 
Circulars  737,  738,  740.) 

Violations  of  law  and  regulations  by  wholesale  liquor  dealers 
and  rectifiers.     (Cir.  No.  616;  T.  D.  455.) 

Marks  on  packages  put  up  by  wholesale  liquor  dealers.  (Cir. 
No.  652,  T.  D.  734.) 

Brands  in  spiral  form  are  no  longer  to  be  used  on  rectifiers' 
packages  of  spirits.     (T.  D.  721,  Nov.  24,  1903.) 

Obscure  marking  and  branding.     (T.  D.  566.) 

Sec.  3321  [relative  to  gauging  and  stamping  spirits  on 
premises  of  wholesale  dealer,  repealed  by  legislative,  execu- 
tive, and  judicial  appropriation  act  of  Aug.  15,  1876  (19 
Stat,  152).} 
Ati?"inggandvar:     Sec-  3322-  ^  blanks  in  any  of  the  forms  prescribed  in 
nisking  stamps,    the  preceding  sections  shall  be  duly  filled  in  accordance 
with  the  facts  in  each  case.     And  the  stamps  therein  des- 
ignated shall  in  every  case  be  affixed  to  a  smooth  surface 
of  the  cask  or  other  package,  which  surface  shall  not 
have  been  previously  painted  or  covered  with  any  sub- 
stance, and  so  as  to  fasten  the  same  securely  to  the  cask 
or  package,  and  shall  be  duly  canceled,  and  shall  then  be 
immediately  covered  with  a  coating  of  transparent  var- 
nish, or  other  substance,  so  as  to  protect  them  from  re- 
moval oi"  damage  by  exposure;  and  such  affixing,  can- 
cellation, and  covering  shall  be  done  in  such  manner  as 
the  Commissioner  of  Internal  Revenue  may  by  regulation 
prescribe, 
wholesale     Sec.  3323  [as  amended  by  the  act  of  July  16,  1892  (27 
mark,  brand,  and  Stat.,  200)}.  Every  package  of  distilled  spirits  containing 
stamp  packages.  £ye  wme  gapi0ns  or  more>  filled  on  the  premises  of  a  whole- 
sale liquor  dealer,  who  has  paid  the  special  tax  required 
by  law,  shall  be  marked,  branded,  and  stamped  by  such 
wholesale  liquor  dealer  in  such  manner  and  under  such 
rules  and  regulations  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury, 
may  prescribe;  and  on  or  before  the  tenth  day  of  each 
Returns.         month  every  wholesale  liquor  dealer  shall  make  return, 
under  oath,  to  the  collector  of  internal  revenue  for  the 
district  of  the  various  kinds  and  quantities  of  each  kind 
Form.  an(j  0f  £jle  total  quantities  of  distilled  spirits  received  on 

his  premises  and  of  the  various  kinds  and  quantities  of 
each  kind  and  of  the  total  quantity  of  distilled  spirits  sent 
out  from  his  stock  or  possession  during  the  preceding 
month,  and  of  the  quantity  of  each  kind  and  the  total 
quantity  remaining  on  hand  at  the  end  of  the  month;  and 
such  return  shall  be  made  in  such  form  and  contain  such 
other  particulars  as  the  Commissioner  of  Internal  Rev- 
enue, with  the  approval  of  the  Secretary  of  the  Treasury, 
Penalty.  may  prescribe.  And  every  rectifier  or  wholesale  liquor 
dealer  who  refuses  or  willfully  neglects  to  comply  with  the 
requirements  of  this  act  as  to  giving  the  said  notice  or  the 
said  return,  and  as  to  marking,  branding,  and  stamping, 
in  accordance  with  the  law  and  the  regulations  made  in 
pursuance  thereof,  the  packages  of  spirits  filled  on  his  prem- 


DISTILLED    SPIRITS,  215 

ises  as  aforesaid,  shall,  for  each  such  offense,  oe  fined  not 
less  than  two  hundred  dollars  nor  more  than  one  thousand 
dollars. 

Spurious  labels.     (T.  D.  286.) 

Reduction  in  proof  of  distilled  spirits  in  distillers'  original 
packages.     (Regulations  No.  7,  rev.,  p.  190.) 

Section  3289,  Revised  Statutes,  provides  forfeiture  if  spirits  are 
not  marked  and  branded  as  required.  (U.  S.  v.  7  Bbls.  of 
Whiskey,  131  Fed.  Rep.,  806.) 

Sec.  3324.  Every  person  who  empties  or  draws  off,  ort  stamps  and 

j        i  ••     S  i  a  ]•   x*n    J  ■    '±     brands  to  be  ef- 

causes  to  be  emptied  or  drawn  on,  any  distilled  spirits  faced  from  empty 
from  a  cask  or  package  bearing  any  mark,  brand,  orcasks- 
stamp,  required  by  law,  shall,  at  the  time  of  emptying 
such  cask  or  package,  efface  and  obliterate  said  mark  Penalti  f 
stamp,  or  brand.  Every  such  cask  or  package  from  omitting  to  efface 
which  said  mark,  brand,  or  stamp  is  not  effaced  and  tau0n°r  inanvwi£ 
obliterated  as  herein  required,  shall  be  forfeited  to  thetion°naw- 
United  States,  and  may  be  seized  by  any  officer  of  in- 
ternal revenue  wherever  found.  And  every  railroad 
company  or  other  transportation  company,  or  person 
who  receives  or  transports,  or  has  in  possession  with  in- 
tent to  transport,  or  with  intent  to  cause  or  procure  to 
be  transported,  any  such  empty  cask  or  package,  or  any 
part  thereof,  having  thereon  any  brand,  mark,  or  stamp, 
required  by  law  to  be  placed  on  any  cask  or  package  con- 
taining distilled  spirits,  shall  forfeit  three  hundred  dollars 
for  each  such  cask  or  package,  or  any  part  thereof,  so 
received  or  transported,  or  had  in  possession  with  the  in- 
tent aforesaid;  and  every  boat,  railroad-car,  cart,  dray, 
wagon,  or  other  vehicle,  and  all  horses  and  other  animals 
used  in  carrying  or  transporting  the  same  shall  be  for- 
feited to  the  United  States.  Every  person  who  fails  to 
efface  and  obliterate  said  mark,  stamp,  or  brand,  at  the 
time  of  emptying  such  cask  or  package,  or  who  receives 
any  such  cask  or  package,  or  any  part  thereof,  with  the 
intent  aforesaid,  or  who  transports  the  same,  or  know- 
ingly aids  or  assists  therein,  or  who  removes  any  stamp 
provided  by  law  from  any  cask  or  package  containing,  or 
which  had  contained,  distilled  spirits,  without  defacing 
and  destroying  the  same  at  the  time  of  such  removal,  or 
who  aids  or  assists  therein,  or  who  has  in  his  possession 
any  such  stamp  so  removed  as  aforesaid,  or  has  in  his 
possession  any  canceled  stamp,  or  any  stamp  which  has 
been  used,  or  which  purports  to  have  been  used,  upon 
any  cask  or  package  of  distilled  spirits,  shall  be  deemed 
guilty  of  a  felony,  and  shall  be  fined  not  less  than  five 
hundred  dollars  nor  more  than  ten  thousand  dollars,  and 
imprisoned  not  less  than  one  year  nor  more  than  five 
years. 

As  to  empty  imported  spirit  packages,  see  act  of  March  1, 1879, 
as  amended,  page  227. 

It  is  of  no  consequence  under  this  section  what  the  intent  of 
the  person  failing  to  obliterate  stamp  is.  There  is  no  discretion 
given  to  the  court  whether  to  fine  or  imprison  for  the  offense. 


216  DISTILLED   SPIRITS. 

The  offender  must  be  fined  and  also  imprisoned.  (United  States 
v.  Quantity  of  Distilled  Spirits,  3  Ben.,  552;  11  Int.  Rev.  Rec,  3.) 

Principal  liable  for  failure  of  employee  to  obliterate  stamps. 
(United  States  v.  Adler  &  Furst,  21  Int.  Rev.  Rec,  316.) 

The  emptying  of  a  cask  without  destroying  stamp  by  the  wife 
of  a  retail  liquor  dealer,  who  acts  for  her  husband,  renders  the 
latter  liable  to  the  penalty. 

It  is  well  settled  that  where  a  master,  owing  a  certain  duty 
to  the  public,  intrusts  its  performance  to  a  servant,  he  is  re- 
sponsible criminally  for  failure  of  servant  to  discharge  the  duty, 
if  nonperformance  of  the  duty  is  a  crime.  (United  States  v. 
Buchanan  (1881),  4  Hughes,  487;  9  Fed.  Rep.,  689.) 

Indictment  for  removing  stamps  from  casks  containing  dis- 
tilled spirits.  (United  States  v.  Bayaud  et  al.,  16  Fed.  Rep., 
370;  21  Blatch.,  287.) 

Verdict  set  aside.  (U.  S.  v.  Rogers,  western  district  of  Ken- 
tucky (1908),  164  Fed.  Rep.,  520.) 

An  indictment  for  failing  to  efface  and  cancel  marks  and 
brands  at  the  time  of  emptying  the  package,  need  not  aver  a 
criminal  intent.  (U.  S.  v.  Ulrici,  3  Dill,  533;  Fed.  Cas.  No. 
16594;  U.  S.  v.  Gallant,  177  Fed.  Rep.,  281.) 

The  carrier  is  bound  to  know  whether  or  not  there  were  stamps 
upon  the  barrels  not  effaced  or  obliterated.  (U.  S.  v.  Goodrich 
Transp.  Co.,  Fed.  Cas.  15228;  8  Biss,  224.) 

Section  3324  does  not  apply  to  stamps  on  cases  which  had  con- 
tained spirits  bottled-in-bond.     (T.  D.  1252.) 

Circular  letter  to  revenue  officers  relative  to  the  requirements 
of  this  section.     (T.  D.  1648.) 

Definition  of  felony.  (Sec.  335,  Criminal  Code,  act  of  Mar.  4, 
1909,  p.  388.) 

Buying;  or  sell-     Sec.  3325.  Whenever  any  person  knowingly  purchases 

ing    spirit    casks  „  ..,       .  ,.  ^  i         ji  i 

having     inspec- or  sells,    with   inspection-marks   thereon,    any    cask    or 

tion  marks.        package,  after  the  same  has  been  used  for  distilled  spirits, 

Penalty.  he  shall  forfeit  and  pay  the  sum  of  two  hundred  dollars 

for  every  such  cask  so  purchased  or  sold. 
changing  or  ai-     Sec.  3326.  Whenever  any  person  changes  or  alters  any 
brands.mshming  stamp,  mark,  or  brand  on  any  cask  or  package -containing 
spirits,  etc.         distilled  spirits,  or  puts  into  any  cask  or  package  spirits 
of  greater  strength  than  is  indicated  by  the  inspection- 
mark  thereon,  or  fraudulently  uses  any  cask  or  package 
having  any  inspection-mark  or  stamp  thereon,  for  the 
purpose  of  selling  other  spirits,  or  spirits  of  quantity  or 
quality  different  from  the  spirits  previously  inspected 
Penalty.  therein,  he  shall  forfeit  and  pay  the  sum  of  two  hundred 

dollars  for  every  cask  or  package  on  which  the  stamp  or 
mark  is  so  changed  or  altered,  or  which  is  so  fraudulently 
used,  and  shall  be  fined  for  each  such  offense  not  less 
than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  and  imprisoned  not  less  than  one  month  nor  more 
than  one  year. 

United  States  v.  Bardenheier  (49  Fed.  Rep.,  846.) 

Removaj  of     Sec.  3327.  No  person  shall  remove  any  distilled  spirits 
tnicry  or°rectifl-at  any  other  time  than  after  sun-rising  and  before  sun- 
fore  amrfeeSandse**'I1S  m  an3  cask  or  package  containing  more  than  ten 
after  sunset.        gallons  from  any  premises  or  building  in  which  the  same 
may    have    been    distilled,    redistilled,    rectified,    com- 
pounded, manufactured,  or  stored;  and  every  person  who 
Penalty.  violates  this  provision  shall  be  liable  to  a  penalty  of  one 

hundred   dollars  for  each   cask,   barrel,   or  package  of 


DISTILLED    SPIRITS.  217 

spirits  so  removed;  and  said  spirits,  together  with  any    Foi*iture. 
vessel  containing  the  same,  and  any  horse,  cart,  boat,  or 
other  conveyance  used  in  the  removal  thereof,  shall  be 
forfeited  to  the  United  States. 

Sec.  3328.  On  all  wines,  liquors,  or  compounds  known    'rax  °fn  imita" 

.  -.  .  {*■  .'     .       .      .f     .  „  tions     of    wines; 

or  denominated  as  wine,  and  made  m  imitation  or  spar-  now  paid. 
kling  wine  or  champagne,  but  not  made  from  grapes 
grown  in  the  United  States,  and  on  all  liquors,  not  made 
from  grapes,  currants,  rhubarb,  or  berries  grown  in  the 
United  States,  but  produced  by  being  rectified  or  mixed 
with  distilled  spirits  or  by  the  infusion  of  any  matter  in 
spirits,  to  be  sold  as  wine,  or  as  a  substitute  for  wine, 
there  shall  be  levied  and  collected  a  tax  of  ten  cents  per 
bottle  or  package  containing  not  more  than  one  pint,  or  of 
twenty  cents  per  bottle  or  package  containing  more 
than  one  pint  and  not  more  than  one  quart,  and  at  the 
same  rate  for  any  larger  quantity  of  such  merchandise, 
however  the  same  may  be  put  up,  or  whatever  may  be 
the  package.  The  Commissioner  of  Internal  Revenue 
shall  cause  to  be  prepared  suitable  and  special  stamps 
denoting  the  tax  herein  imposed,  to  be  affixed  to  each 
bottle  or  package  containing  such  merchandise,  by  the 
person  manufacturing,  compounding,  or  putting  up  the 
same,  before  removal  from  the  place  of  manufacture, 
compounding,  or  putting  up;  and  said  stamps  shall  be 
affixed  and  canceled  in  such  manner  as  the  Commissioner 
may  prescribe;  and  the  absence  of  such  stamp  from  any 
bottle  or  package  containing  such  merchandise  shall  be 
prima  facie  evidence  that  the  tax  thereon  has  not  been 
paid,  and  such  merchandise  shall  be  forfeited  to  the 
United  States. 

Anv  person   counterfeiting,    altering,   or  reusing  said     counterfeiting, 

J     r  &>  fc>»  fc>  altering,     or     re- 

stamps  shall   be  subject  to   the  same  penalties  as    are  using  stamps. 
imposed  for  the  same  offenses  in  relation  to  proprietary    Fenalties- 
stamps. 

See  section  3429,  Revised  Statutes,  for  penalties  for  counter- 
feiting, etc.,  and  section  8,  act  of  June  13,  1898  (30  Stat.,  448). 

Held,  that  the  article  was  none  the  loss  free  from  tax,  as  being 
"made  from  grapes  grown  in  the  United  States,"  notwithstand- 
ing the  carbonic  acid  gas  was  injected  by  a  separate  pro«ess  of 
manufacture.  (United  States  v.  Wines  of  Blum.,  G  Ben.,  493; 
17  Int.  Rev.  Rec,  181.) 

Sec.  3329  [as  amended  by  sec.  10,  act  of  May  28,  1SS0 
(21   Stat.,   145)\  Distilled  spirits  upon  which   all  taxes 
have  been  paid  may  be  exported,  with  the  privilege  of 
drawback,     *     *     *     and  in  distillers'  original  casks  (or)  d^[ne4bsaeirits0n 
packages,  containing  not  less  than  twenty  wine-gallons 
each,  on  application  of  the  owner  thereof  to  the  collector 
of  customs  at  any  port  of  entry,  and  under  such  rules  and 
regulations,  and  after  making  such  entry  as  may  be  pre- 
scribed by  law  and  by  the  Secretary  of  the  Treasury. 
The  entry  for  such  exportation  shall  be  in  triplicate,  and 
shall  contain  the  name  of  the  person  applying  to  export,  diluie<dtatspwtsf 
the  name  of  the  distiller,   the  name  of  the  district  in  upon  which  tax 
which  the  spirits  were  distilled,  the  name  of  the  vessel  by 


218  DISTILLED   SPIRITS. 

which,  and  the  name  of  the  port  to  which,  they  are  to  be 
exported;  and  the  form  of  the  entry  shall  be  as  follows: 

Export  entry  of  distilled  spirits  entitled  to  drawback. 

Entry  of  spirits  distilled  by ,  in district,  State 

of  ,  to   be  exported  by ,  in  the  ,  whereof 

is  master,  bound  to . 

And  the  entry  shall  specify  the  whole  number  of  casks 
or  packages,  the  marks  and  serial  numbers  thereon,  the 
quality  or  kind  of  spirits  as  known  in  commerce,  the 
number  of  gauge  or  wine  gallons  and  of  proof -gallons; 
and  the  amount  of  the  tax  on  such  spirits  shall  be  verified 
by  the  oath  of  the  owner  of  the  spirits,  and  that  the  tax 
has  been  paid  thereon,  and  that  they  are  truly  intended 

to  be  exported  to  the  port  of  ,   and  not  to  be 

relanded  within  the  limits  of  the  United  States.  One 
bill  of  lading,  duly  signed  by  the  master  of  the  vessel, 
shall  be  deposited  with  said  collector,  to  be  filed  at  his 
office  with  the  entry  retained  by  him.  One  of  said 
entries  shall  be,  when  the  shipment  is  completed,  trans- 
mitted to  the  Secretar}7  of  the  Treasury,  to  be  recorded 
and  filed  in  his  office.  The  lading  on  board  said  vessel 
shall  be  only  after  the  receipt  of  an  order  or  permit 
signed  by  the  collector  of  customs  and  directed  to  a 
customs  gauger,  and  after  each  cask  or  package  shall 
have  been  distinctly  marked  or  branded  by  said  gauger 
as  follows:  "For  export  from  U.  S.  A.,"  and  the  tax-paid 
stamps  thereon  obliterated.  The  casks  or  packages 
shall  be  inspected  and  gauged  alongside  of  or  on  the 
vessel  by  the  gauger  designated  by  said  collector,  under 
such  rules  and  regulations  as  the  Secretary  of  the  Treas- 
ury may  prescribe;  and  on  application  of  the  said  col- 
lector it  shall  be  the  duty  of  the  surveyor  of  the  port  to 
designate  and  direct  one  of  the  custom-house  inspectors 
to  superintend  such  shipment.  And  the  gauger  aforesaid 
shall  make  a  full  return  of  such  inspection  and  gauging 
in  such  form  as  may  be  prescribed  dv  the  Secretary  of 
the  Treasury,  showing  by  whom  each  cask  of  such  spirits 
was  distilled,  the  serial  number  of  the  cask,  and  of  the 
tax-paid  stamp  attached  thereto,  the  proof  and  quantity 
of  such  spirits  as  per  the  original  gauge-mark  on  each 
cask,  and  the  quantity  in  proof  and  wine  gallons  as  per 
the  gauge  then  made  by  liim.  And  said  gauger  shall 
certify  on  such  return  that  the  shipment  has  been  made, 
in  his  presence,  on  board  the  vessel  named  in  the  entry 
for  export,  which  return  shall  be  indorsed  b}T  said  custom- 
house inspector  certifying  that  the  casks  or  packages 
have  been  shipped  under  his  supervision  on  board  said 
vessel,  and  the  tax-paid  stamps  obliterated;  and  the  said 
inspector  shall  make  a  similar  certificate  to  the  surveyor 
of  the  port,  indorsed  on  or  to  be  attached  to  the  entry  in 
possession  of  the  custom-house. 


DISTILLED   SPIRITS.  219 

A  drawback  shall  be  allowed  upon  distilled  spirits  on  Drawback, 
which  the  tax  has  been  paid  and  exported  to  foreign  coun- 
tries, under  the  provisions  of  this  act,  when  exported  as 
herein  provided  for.  The  drawback  allowed  shall  include 
the  taxes  levied  and  paid  upon  the  distilled  spirits  ex- 
ported, at  the  rate  of  ninety  cents  per  proof-gallon,  as  per 
last  gauge  of  said  spirits  prior  to  exportation,  and  shall  be 
due  and  payable  only  after  the  proper  entries  have  been 
made  and  filed,  and  all  other  conditions  complied  with  as 
hereinbefore  required,  and  on  filing  with  the  Secretary  of 
the  Treasury  the  proper  claim,  accompanied  by  the  certifi- 
cate of  the  collector  of  customs  at  the  port  of  entry  where 
the  spirits  are  entered  for  export,  that  such  spirits  have 
been  received  into  his  custody  and  the  tax-paid  stamps 
thereon  obliterated;  and  the  Secretary  of  the  Treasury 
shall  prescribe  such  rules  and  regulations  in  relation 
thereto  as  may  be  necessary  to  secure  the  Treasury  of 
the  United  States  against  frauds:  Provided,  That  the 
drawback  on  spirits  distilled  prior  to  August  one,  eighteen 
hundred  and  seventy-two,  shall  not  exceed  sixty  cents 
per  proof-gallon. 

For  penalty  imposed  for  fraudulently  claiming  drawback  see 
section  3330,  Revised  Statutes. 

One  of  the  changes  in  section  3329  made  by  section  10,  act  of 
May  28,  1880,  was  in  these  words:  "That  section  thirty-three 
hundred  and  twenty-nine  of  the  Revised  Statutes  of  the  United 
States  be  amended  by  striking  out  after  the  word  'exported, '  in 
the  fifty-sixth  line,  the  words  'at  the  rate  of  seventy  cents  per 
proof-gallon,'  and  inserting  in  lieu  thereof  the  word  'ninety." 
It  was  intended  by  this  amendment,  as  construed  by  this  office, 
simply  to  strike  out  "seventy"  and  insert  "ninety,"  and  is 
printed  as  intended. 

In  the  absence  of  any  provision  of  law  for  the  allowance  of 
drawback  of  tax  at  the  rate  imposed  by  section  48,  act  of  August 
28, 1894,  no  greater  allowance  than  here  authorized  can  be  made. 
The  allowance  of  drawback  is  limited  to  90  cents  per  gallon, 
owing  to  the  failure  of  Congress  to  amend  this  section  when  the 
rate  of  tax  was  increased  to  $1.10  per  gallon. 

Drawback  to  be  computed  on  proo/-gallons  in  all  cases,  not- 
withstanding the  fact  that  tax  is  levied  and  paid  on  the  wine- 
gallon  when  below  proof.  (Decision  of  Secretary  of  the  Treasury 
May  19,  1884,  case  of  Lilienthal  &  Co.,  30  Int.  Rev.  Rec,  157.) 

Removal  of  spirits  from  distiller's  original  casks  or  packages 
to  other  packages  prior  to  exportation,  even  if  under  supervision 
of  customs  officers,  vitiates  claim  for  drawback.  (Decision  of 
Secretary  of  the  Treasury  June  14, 1883,  case  of  Hayes  &  Poppele. 
See  also  like  decision  (Treasury  Dept.,  No.  5859,  Aug.  1883)  as 
to  exported  spirits  returned  to  United  States  to  be  recasked  for 
re-exportation;  29  Int.  Rev.  Rec,  308.) 

As  the  statute  provides  only  for  the  exportation  of  spirits  by 
vessel  (see  sec.  3,  R.  S.)  no  allowance  of  drawback  can  be  made 
on  spirits  exported  by  cars  or  other  vehicles  used  as  a  means  of 
transportation  on  land.  (Decision  of  Secretary  of  the  Treasury 
Apr.  18,  1885,  case  of  Lilienthal  &  Co.) 

Date  of  exportation  to  be  determined  by  date  of  sailing  of 
exporting  vessel.     (Thompson  et  al.,  v.  Peaslee,  20  How.,  57.) 

Drawback  on  medicinal  and  toilet  preparations  manufactured 
from  tax-paid  alcohol,  page  337. 

Regulation  in  regard  to  drawback  of  tax  on  distilled  spirits. 
(Regulations  No.  29  Revised.) 


220  DISTILLED    SPIRITS. 

diftmedta"pwts  Sec-  333°  ^-as  amended  hy  sec.  2,  act  of  June  9,  1874  08 
withdrawn  iromStat.,  64);  and  sec.  11,  act  of  May  28,  1880  (21  Stat.,  145)]. 
houses.6  ware"  Distilled  spirits  may  be  withdrawn  from  distillery  bonded 
warehouses,  at  the  instance  of  the  owner  of  the  spirits 
for  exportation  in  the  original  casks,  or  packages,  without 
the  payment  of  tax,  under  such  regulations,  and  after 
making  such  entries  and  executing  and  filing  with  the 
collector  of  the  district  from  which  the  removal  is  to  be 
made  such  bonds  and  bills  of  lading,  and  giving  such 
other  additional  security  as  may  be  prescribed  by  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury:  Provided,  That  bonds 
given  under  this  section  shall  be  canceled  under  such 
regulations  as  the  Secretary  of  the  Treasury  shall  pre- 
scribe: And  provided  further ,  That  the  bonds  required  to 
be  given  for  the  exportation  of  distilled  spirits  shall  be 
canceled  upon  the  presentation  of  satisfactory  proof  and 
certificates  that -said  distilled  spirits  have  been  landed  at 
the  port  of  destination  named  in  the  bill  of  lading,  or 
upon  satisfactory  proof  that  after  shipment  the  same 
were  lost  at  sea  without  fault  or  neglect  of  the  owner  or 
shipper  thereof. 

All  distilled  spirits  intended  for  export,  as  aforesaid, 
before  being  removed  from  the  distillery  warehouse,  shall 
be  marked  as  the  Commissioner  of  Internal  Revenue  may 
prescribe,  and  shall  have  allixed  to  each  cask  an  engraved 
stamp  indicative  of  such  intention,  to  be  provided  and  fur- 
nished by  the  several  collectors  as  in  the  case  of  other 
stamps,  and  to  be  charged  to  them  and  accounted  for  in 
Export  stamp,  the  same  manner,  and  for  the  expense  attending  the  pro- 
^ 25eif8  in?tea't  vidmg  and  allixing  such  stamps  ten  cents  for  each  package 
June 9, 1874.)'  so  stamped  shall  be  paid  to  the  collector  on  making  the 
entry  for  such  transportation.  When  the  owner  of  the 
spirits  shall  have  made  the  proper  entries,  filed  the  bonds, 
and  otherwise  complied  with  all  the  requirements  of  the 
law  and  regulations  as  herein  provided,  the  collector  shall 
issue  to  him  a  permit  for  the  removal  and  transportation 
of  said  spirits  to  the  collector  of  the  port  from  which  the 
same  are  to  be  exported,  accurately  describing  the  spirits 
to  be  shipped,  the  amount  of  tax  thereon,  the  State  and 
district  from  which  the  same  is  to  be  shipped,  the  name 
of  the  distiller  by  whom  distilled,  the  port  to  which  the 
same  are  to  be  transported,  the  name  of  the  collector  of 
the  port  to  whom  the  spirits  are  to  be  consigned,  and  the 
routes  over  which  they  are  to  be  sent  to  the  port  of  ship- 
ment. Such  shipment  shall  be  made  over  bonded  routes 
whenever  practicable.  The  collector  of  the  port  shall 
receive  such  spirits,  and  permit  the  exportation  thereof, 
under  the  same  rules  and  regulations  as  are  prescribed  for 
the  exportation  of  spirits  upon  which  the  tax  has  been 
paid. 
Fraudulent  And  every  person  who  fraudulently  claims,  or  seeks,  or 
ba<!k!'s  for  draw_ obtains  an  allowance  of  drawback  on  any  distilled  spirits, 
or  fraudulently  claims  any  greater  allowance  or  drawback 


DISTILLED    SPIRITS.  221 

than  the  tax  actually  paid  thereon,  shall  forfeit  and  pay  to  Penalty- 
the  Government  of  the  United  States  triple  the  amount 
wrongfully  and  fraudulently  sought  to  be  obtained,  and 
shall  be  imprisoned  not  more  than  ten  years;  and  every 
owner,  agent,  or  master  of  any  vessel  or  other  person  who 
knowingly  aids  or  abets  in  the  fraudulent  collection  or 
fraudulent  attempts  to  collect  any  drawback  upon,  or 
knowingly  aids  or  permits  any  fraudulent  change  in  the 
spirits  so  shipped,  shall  be  fined  not  exceeding  live  thou- 
sand dollars  and  imprisoned  not  more  than  one  year,  and 
the  ship  or  vessel  on  board  of  which  such  shipment  was 
made  or  pretended  to  be  made  shall  be  forfeited  to  the 
United  States,  whether  a  conviction  of  the  master  or 
owner  be  had  or  otherwise,  and  proceedings  may  be  had 
in  admiralty  by  libel  for  such  forfeiture. 

Every  person  who  intentionally  relands  within  the  juris-  .t  Reiandm^spir- 
diction  of  the  United  States  any  distilled  spirits  which  ponatwn. 
have  been  shipped  for  exportation  under  the  provisions 
of  this  act,  or  who  receives  such  relanded  distilled  spirits, 
and  every  person  who  aids  or  abets  in  such  relanding  or 
receiving  of  such  spirits,  shall  be  fined  not  exceeding  five 
thousand  dollars  and  imprisoned  not  more  than  three    Penalty. 
years;  and  all  distilled  spirits  so  relanded,  together  with 
the  vessel  from  which  the  same  were  relanded  within  the 
jurisdiction  of  the  United  States,  and  all  boats,  vehicles, 
horses,  or  other  animals  used  in  relanding  and  removing 
such   distilled  spirits,   shall  be  forfeited  to   the  United 
States. 

See  notes  under  section  3329. 

Fraudulent  claims  for  drawback.     (Sec.  3443,  p.  353.) 

The  amendment  by  the  act  of  June  9,  1874,  reduced  the  ex- 
pense of  export  stamp  from  25  to  10  cents. 

Instructions  relative  to  removal  of  spirits  and  giving  bonds 
within  30  days  from  date  of  regauge  for  exportation.  (T.  D. 
21472,  1899.) 

Regulations  No.  29.  Concerning  the  transportation  and  ex- 
portation of  distilled  spirits  in  bond  without  payment  of  tax. 

See  on  this  section  Clay  v.  Swope  (1889),  (35  Int.  Rev.  Rec, 
136). 

As  to  wooden  packages  containing  metallic  cans,  see  section 
3287,  as  amended. 

Exportation  and  reimportation  of  distilled  spirits.  (T.  D. 
1458)  (incorporated  in  Regulation  No.  29  revised),  Cir.  No.  5, 
Int.  Rev.  No.  733,  Feb.  4,  1909.) 

Transfer  of  distilled  spirits  to  bonded  manufacturing  ware- 
house, page  336. 

The  execution  of  the  export  bond  frees  the  spirits  for  the  time 
being  from  obligation  to  pay  the  tax,  and  from  the  operation 
of  the  warehousing  bond.     (18  Op.  Atty.  Gen.,  92.) 

Sec.  [3330a.]  [Sec.  1,  act  of  June  9.  1874  08  Stat,  64),  a^^S^S- 
as  amended  hy  sec.  10,  act  of  Mar.  1,  1879  {20  Stat,  W). ]*££$£  btr0Td 
That  whenever  the  owner  or  owners  of  distilled  spirits  may  be  taken, 
shall  desire  to  withdraw  the  same  from  any  distillery 
bonded  warehouse  for  exportation  under  existing  law, 
such  owner  or  owners  may  at  their  option,  in  lieu  of  exe- 
cuting an  export  bond  as  now  provided  by  law,  give  a 
transportation  bond  with  sureties  satisfactory  to  the  col- 


222  DISTILLED    SPIRITS. 

lector  of  internal  revenue,  and  under  such  rules  and  regu- 
lations as  the  Secretary  of  the  Treasury  may  prescribe, 
conditioned  for  the  due  delivery  thereof  on  board  ship  at 
a  port  of  exportation  to  be  named  therein,  and  for  the  due 
performance  on  the  part  of  the  exporter  or  owner  at  the  port 
of  export  of  all  the  requirements  in  regard  to  notice  of  export, 
entry,  and  the  giving  of  bond  hereinafter  specified;  and  in 
such  case,  on  arrival  of  the  spirits  at  the  port  of  export, 
the  exporter  or  owner  at  that  port  shall  immediately 

Notice  to  coi- notify  the  collector  of  the  port  of  the  fact,  setting  forth 
his  intention  to  export  the  same,  and  the  name  of  the 
vessel  upon  which  the  same  are  to  be  laden,  and  the  port 
to  which  they  are  intended  to  be  exported.  He  shall, 
after  the  quantity  of  spirits  has  been  determined  by  the 
gauger  and  inspector,  file  with  the  collector  of  the  port  an 

Export  entry,  export-entry   verified   by   his   oath   or   affirmation.     He 

Export  bond,  shall  also  give  bond  to  the  United  States,  with  at  least  two 
sureties,  satisfactory  to  the  collector  of  customs,  condi- 
tioned that  the  principal  named  in  said  bond  will  export 
the  spirits  as  specified  in  said  entry  to  the  port  designated 
in  said  entry,  or  to  some  other  port  without  the  jurisdic- 
tion of  the  United  States. 

And  upon  the  lading  of  such  spirits,  the  collector  of  the 
port,  after  proper  bonds  for  the  exportation  of  the  same 
have  been  completed  by  the  exporter  or  owner  at  the  port 
of  shipment  thereof,  shall  transmit  to  the  collector  of  in- 
ternal revenue  of  the  district  from  which  the  said  spirits 

clearance   cer-were  withdrawn  for  exportation,  a  clearance  certificate 
er'sreport.  g    s"and  a  detailed  report  of  the  gauger,  which  report  shall 
show  the  capacity  of  each  cask  in  wine-gallons,  and  the 
contents  thereof  in  wine-gallons,  proof-gallons,  and  tax- 
able gallons.     Upon  receipt  of  the  certificate  and  report, 
and  upon  payment  of  tax  on  deficiency,  if  any,  the  col- 
lector of  internal  revenue  shall  cancel  the  transportation 
tran^o^tation^011^-     ^he  Dond  required  to  be  given  for  the  landing  at 
bond.  a  foreign  port  of  distilled  spirits  shall  be  canceled  upon  the 

presentation  of  satisfactory  proof  and  certificates  that  said 

Cartbond°n  of distilled  spirits  have  been  landed  at  the  port  of  destina- 
tion named  in  the  bill  of  lading  or  any  other  port  without 
the  jurisdiction  of  the  United  States  or  upon  satisfactory 
proof  that  after  shipment  the  same  were  lost  at  sea  with- 

a^kaaense  ° f  ou^  fault  or  neglect  of  the  owner  or  shipper  thereof;  and 
whenever  a  distiller  of  spirits  in  bond  shall  desire  to  change 
the  packages  in  which  the  same  is  contained,  in  order  to  ex- 
port them,  the  Commissioner  of  Internal  Revenue  shall  be 
authorized,  under  regulations  to  be  prescribed  by  him,  and 
upon  the  execution  of  proper  bonds  with  sufficient  sureties, 
to  permit  the  withdrawal  of  so  much  spirits  from  bond  and 
in  new  packages  as  the  distiller  shall  desire  to  export  as 
aforesaid. 

The  withdrawal  of  spirits  from  a  bonded  warehouse  for  con- 
sumption on  a  foreign  war  vessel  is  not  an  exportation.  (23  Op. 
Atty.  Gen.,  420.) 

Tax  on  deficiency  in  transportation  on  the  quantity  of  spirits 
withdrawn  from  distillery  warehouse  for  export  may  be  collected 


DISTILLED    SPIRITS.  223 

by  distraint  as  well  as  by  suit  upon  the  transportation  bond. 
(16  Op.  Atty.  Gen.,  634;  25  Int.  Rev.  Rec,  342.) 

The  shipment  of  domestic  spirits  to  a  foreign  country  and  their 
subsequent  return  to  the  United  States  do  not  constitute  an  ex- 
portation and  reimportation  within  the  contemplation  of  law, 
where  the  spirits  were  shipped  abroad  with  the  intention  of  being 
returned  to  this  country.  (17  Op.  Atty.  Gen.,  579;  29  Int.  Rev. 
Rec,  225;  27  Op.  Atty.  Gen.,  113.) 

Spirits  so  shipped  are  liable  to  forfeiture  under  the  provisions 
of  section  3299,  Revised  Statutes,  and  every  person  making  such 
shipment  is  also  liable  to  the  penalties  imposed  by  section  3296, 
Revised  Statutes.     (Cix.  No.  733;  T.  D.  1458.) 

Extending  bonding  period  in  case  of  spirits  to  be  exported. 
(18  Op.  Atty.  Gen.,  92;  30  Int.  Rev.  Rec,  405.) 

Condition  of  export  bond  being  broken  through  failure  to  with- 
draw spirits  from  distillery  warehouse,  tax  should  be  assessed, 
bond  may  be  sued,  or  tax  may  be  collected  by  distraint.  (18  Op. 
Atty.  Gen.,  246  (Garland);  31  Int.  Rev.  Rec,  246.) 

Railroad  companies  and  stockholders  in  incorporated  distilling 
companies,  as  sureties  on  transportation  bonds.  (29  Int.  Rev. 
Rec,  177,  185.) 

Tax  on  loss  in  distillery  warehouse  after  riling  export  bond  and 
before  actual  withdrawal.  (United  States  v.  Thompson.  32  Int. 
Rev.  Rec,  166;  142  U.  S.,  471.) 

Suit  to  restrain  the  collector  from  refusing  to  accept  export 
bonds.     (Miles  v.  Johnson,  collector,  40  Int.  Rev.  Rec,  10.) 

Flagler  v.  Kidd,  78  Fed.  Rep.,  341,  343,  reversing  54  Id.,  367. 

Transportation  and  warehousing  bonds,  Forms  235  and  351, 
for  distilled  spirits,  transferred  to  a  general  or  special  bonded 
warehouse,  may  be  executed  in  duplicate  instead  of  in  triplicate, 
as  heretofore  required.     (T.  D.  1548,  Oct.  5,  1909.) 

See  notes  under  section  3330,  Revised  Statutes. 

[Sec.  3330&.]  [See.  1,  act  of  Dec.  20,  1879  (21  Stat,  50)  J }  jjowance  ^ 
That  where  spirits  are  withdrawn  from  distillery  ware-  during*  transport 
houses  for  exportation  according  to  law,  it  shall  be  lawful, tatlon- 
under  such  rules  and  regulations  and  limitations  as  shall 
be  prescribed  by  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  for  an 
allowance  to  be  made  for  leakage  or  loss  by  any  unavoid- 
able accident,  and  without  any  fraud  or  negligence  of  the 
distiller,  owner,  exporter,  carrier,  or  their  agents  or  em- 
ployees, occurring  during  transportation  from  a  distillery 
warehouse  to  the  port  of  export ;  nor  shall  any  assessment 
be  collected  for  such  loss  or  leakage  where  the  same  has 
not  been  paid  on  distilled  spirits  exported  since  the  first 
day  of  May,  eighteen  hundred  and  seventy-eight. 

Sec.  2.  That  where  the  spirits  provided  for  in  the  pre-    when  spirits 
ceding  section  are  covered  by  a  valid  claim  of  insurance  in are  msured- 
excess  of  the  market  value  thereof,  exclusive  of  the  tax, 
the  tax  upon  such  spirits  shall  not  be  remitted  to  the 
extent  of  such  excessive  insurance. 

See  sections  3221  and  3223,  Revised  Statutes,  as  to  spirits  acci- 
dentally destroyed  in  warehouse. 

Section  15,  act  of  May  28,  1880,  page  336,  as  to  losses  during 
transfers  from  distillery  warehouses  to  manufacturing  warehouses. 

United  States  v.  Mullins  (119  Fed.  Rep.,  334). 

In  any  assessment  growing  out  of  the  regauge  or  claim  for  loss 
an  appeal  lies  to  the  Commissioner  of  Internal  Revenue,  whose 
decisions  are  final.  (Corning  v.  United  States  (1899),  34  Ct. 
Cls.,  272.) 

Articles  shipped  to  the  Philippine  Islands.  (Sec.  6,  act  of 
Mar.  8,  1902,  p.  375.) 


224  DISTILLED   SPIRITS. 

No  provision  has  been  made  for  like  shipments  of  articles  to 
Porto  Rico  free  of  tax  or  with  benefit  of  drawback.  (Sec.  5, 
act  Aug.  5,  1909.) 

Articles  shipped  to  the  Canal  Zone.     (25  Op.  Atty.  Gen.,  324.) 
Regulations  relative   to   the  exportation  of  distilled  spirits 
free  of  tax  or  with  benefit  of  drawback.     (No.  29,  Revised.) 

Release  of  dis-  Sec.  3331.  No  distillery  nor  distilling-apparatus  seized 
judgment,0  in  for  any  violation  of  law  shall  be  released  to  the  claimant  or 
what  cases.  ^0  any  intervening  party  before  judgment,  except  in  case 
of  a  distillery  for  which  bond  has  been  given  and  which 
has  a  registered  producing  capacity  of  one  hundred  and 
fifty  proof  gallons  or  more  per  day,  on  showing,  by  suffi- 
cient affidavits,  that  there  are  hogs  or  other  live  stock, 
not  less  than  50  head  in  number,  depending  for  their  feed 
on  the  products  of  said  distillery,  which  would  suffer 
injury  if  the  business  of  such  distillery  is  stopped.  Such 
distillery,  in  that  case,  may  be  released  to  the  claimant, 
or  to  any  other  intervening  party,  at  the  discretion  of  the 
court,  on  a  bond  to  be  given  and  approved  in  open  court, 
with  two  or  more  sureties,  for  the  full  appraised  value  of 
all  the  property  seized,  to  be  ascertained  by  three  com- 
petent appraisers  designated  and  appointed  by  the  court. 

Whisky  seized  for  forfeiture  and  released  on  bond.  (United 
States  v.  18  Barrels  High  Wines;  25  Fed.  Cas.  (No.  15033),  985; 
8  Blatch.,  475.) 

Distilling  apparatus  seized  for  forfeiture,  and  application 
made  for  its  release  on  bond.  (United  States  v.  2  Tons  of  Coal; 
28  Fed.  Cas.,  320;  5  Blatch.,  386;  United  States  v.  Distillery,  etc., 
of  J.  C.  McCoy  etal.;  (25  Fed.  Cas.,  864;  21  Int.  Rev.  Rec,  165.) 

Nature  of  bond.     (U.  S.  v.  Bergenthal,  29  Fed.  Rep.,  444.) 

Sec.  3332,  [as  amended  oy  sec.  5,  act  of  Mar.  1,  1879 
stuis,  etc.,  to  be  (20  Stat,  327).}  When  a  judgment  of  forfeiture,  in  any 
faincases. m  °er" case  °f  seizure,  is  recovered  against  any  distillery  used 
or  fit  for  use  in  the  production  of  distilled  spirits,  because 
no  bond  has  been  given,  or  against  any  distillery  used 
or  fit  for  use  in  the  production  of  spirits,  having  a  reg- 
istered producing  capacity  of  less  than  one  hundred  and 
fifty  gallons  a  day,  for  any  violation  of  law,  of  whatever 
nature,  every  still,  doubler,  worm,  worm-tub,  mash-tub, 
and  fermenting-tub  therein  shall  be  so  destroyed  as  to 
prevent  the  use  of  the  same  or  of  any  part  thereof  for  the 
purpose  of  distilling;  and  the  materials  shall  be  sold  as  in 
case  of  other  forfeited  property. 

And  in  case  of  seizure  of  a  still,  doubler,  worm,  worm- 
tub,  mash-tub,  fermenting-tub,  or  other  distilling-appa- 
ratus, having  a  less  producing  capacity  than  one  hundred 
and  fifty  gallons  per  day,  for  any  offense  involving  for- 
feiture1 of  the  same,  where  said  apparatus  shall  be  of  less 
than  five  hundred  dollars'  value,  and  where  it  shall  be 
impracticable  to  remove  the  same  to  a  place  of  safe  storage 
from  the  place  where  seized,  the  seizing  officer  is  author- 
ized to  destroy  the  same  only  so  far  as  to  prevent  the  use 
thereof,  or  any  part  thereof,  for  the  purpose  of  distilling: 
Provided,  That  such  destruction  shall  be  in  the  presence 
of  at  least  one  credible  witness,  and  that  such  witness 
shall  unite  with  the  said  officer  in  a  duly  sworn  report 


DISTILLED    SPIRITS.  225 

of  said  seizure  and  destruction,  to  be  made  to  the  Com- 
missioner of  Internal  Revenue,  in  which  report  they  shall 
set  forth  the  grounds  of  the  claim  of  forfeiture,  the  reasons 
for  such  seizure  and  destruction,  their  estimate  of  the 
fair  cash  value  of  the  apparatus  destroyed,,  and  also  of 
the  materials  remaining  after  such  destruction,  and  a 
statement  that,  from  facts  within  their  own  knowledge, 
they  have  no  doubt  whatever  that  said  distilling  appara- 
tus was  set  up  for  use  and  not  registered,  or  had  been 
used  in  the  unlawful  distillation  of  spirits,  and  that  it  was 
impracticable  to  remove  the  same  to  a  place  of  safe 
storage. 

Within  one  year  after  such  destruction  the  owner  of  the  ^^ur^ed  ^ 
apparatus  so  destroyed  may  make  application  to  the  Sec- certain  cases  on 
retary   of   the   Treasury   through   the   Commissioner   of  Kf$*n with' 
Internal  Revenue,  for  reimbursement  of  the  value  of  the 
same;  and  unless  it  shall  be  made  to  appear  to  the  satis- 
faction of  the  Secretary  and  the  Commissioner  that  said 
apparatus  had  been  used  in  the  unlawful  distillation  of 
spirits,  the  Secretary  shall  make  an  allowance  to  said 
owner,  not  exceeding  the  value  of  said  apparatus,  less  the 
value  of  said  materials  as  estimated  in  said  report;  and 
if  the  claimant  shall  thereupon  satisfy  said  Secretary 
and  Commissioner  that  said  unlawful  use  of  the  appa- 
ratus had  been  without  his  consent  or  knowledge,  he 
shall  still   be   entitled   to   such  compensation,   but  not 
otherwise.     And  in  case  of  a  wrongful  seizure  and  destruc-  ur^5°°^^. se^. 
tion   of   property   under   the   foregoing   provisions,    thebie.' 
owner  thereof  shall  have  right  of  action  on  the  official 
bond  of  the  officer  who  occasioned  the  destruction  for  all 
damages  caused  thereby. 

The  words  "judgment  of  forfeiture"  include  cases  of  forfeit- 
ure under  section  3460.     (33  Int.  Rev.  Rec,  397.) 

State  of  North  Carolina  v.  Thos.  H.  Vanderford.  Indictment 
for  a  wanton  and  willful  injury  to  personal  property.  (34  Int. 
Rev.  Rec,  190.) 

Sec.  3333.  Whenever  seizure  is  made  of  any  distilled  J  r0^ecI|ai°1! 
spirits  found  elsewhere  than  in  a  distillery  or  distillery  ant. 
warehouse,  or  other  warehouse  for  distilled  spirits  author- 
ized by  law,  or  than  in  the  store  or  place  of  business  of  a 
rectifier,  or  of  a  wholesale  liqour-dealer,  or  than  in  transit 
from  any  one  of  said  places;  or  of  any  distilled  spirits 
found  in  any  one  of  the  places  aforesaid,  or  in  transit 
therefrom,  which  have  not  been  received  into  or  sent  out 
therefrom  in  conformity  to  law,  or  in  regard  to  which  any 
of  the  entries  required  by  law  to  be  made  in  the  books  of 
the  owner  of  such  spirits,  or  of  the  store-keeper,  wholesale 
dealer,  or  rectifier,  have  not  been  made  at  the  time  or  in 
the  manner  required,  or  in  respect  to  which  the  owner  or 
person  having  possession,  control,  or  _  charge  of  said 
spirits,  has  omitted  to  do  any  act  required  to  be  done, 
or  has  done  or  committed  any  act  prohibited  in  regard 
to  said  spirits,  the  burden  of  proof  shall  be  upon  the 
claimant  of  said  spirits  to  show  that  no  fraud  has  been 

72170°— 11 15 


226  DISTILLED    SPIRITS. 

committed,  and  that  all  the  requirements  of  the  law  in 
relation  to  the  payment  of  the  tax  have  been  complied 
with. 

Where  evidence  is  introduced  tending  to  show  that  true  entries 
and  returns  relative  to  the  spirits  have  not  been  made,  the  burden 
is  thrown  upon  the  claimant  to  prove  regularity.  (U.  S.  v. 
18  Bbls.  of  High  Wines,  8  Blatchf.,  475;  Fed.  Cas.  No.  15033. 
199  Bbls.  of  Whiskey  v.  United  States,  94  U.  S.,  86.  U.  S.  v. 
8  Casks  of  Whisky,  7  Int.  Rev.  Rec,  4;  Fed.  Cas.  No.  15030. 
U.  S.  v.  508  Bbls.  of  Spirits,  5  Blatchf,  407,  Fed.  Cas.  No.  15113. 
United  States  v.  Six  Barrels  Distilled  Spirits,  6  Int.  Rev. 
Rec,  187;  Fed.  Cas.  No.  15114.  U.  S.  v.  Sykes,  58  Fed.  Rep., 
1000.  Twenty-Six  Barrels  and  Seventeen  Tierces  of  Distilled 
Spirits,  Fed.  Cas.  No.  14283.) 

This  provision  requiring  affirmative  proof  by  claimant  is  not 
unconstitutional.  (U.  S.  v.  78  Bbls.,  7  Int.  Rev.  Rec.  4;  Fed. 
Cas.  No.  16257.) 

Sec.  3334,  [as  amended  by  sec.  5,  act  Mar.  1,  1879  (20 
spiriissoidun-#fai.,  327).}     All  distilled  spirits  forfeited  to  the  United 
^rjsubjec?roto States,  sold  by  order  of  court,  or  under  process  of  dis- 
tax-  traint,  shall  be  sold  subject  to  tax;  and  the  purchaser 

shall  immediately,  and  before  he  takes  possession  of  said 
spirits,  pay  the  tax  thereon.  And  any  distilled  spirits 
heretofore  condemned,  and  now  in  the  possession  of  the 
United  States,  shall  be  sold  as  herein  provided.  If  any 
tax-paid  stamps  are  affixed  to  any  cask  or  package  so 
condemned,  such  stamps  shall  be  obliterated  and  de- 
stroyed by  the  collector  or  marshal  after  forfeiture,  and 
before  such  sale. 
Provision  Provided:  That  in  all  cases  wherein  it  shall  appear  that 
S%eeHPfortSprice  any  distilled  spirits  offered  for  sale  on  distraint  for  taxes, 
equal  to  tax.  wnjere  the  taxes  on  such  spirits  have  not  been  paid^  or  offered 
for  sale  for  the  benefit  of  the  United  States  as  forfeited  spirits 
under  order  of  court  or  under  proceeding  pursuant  to  section 
thirty-four  hundred  and  sixty  of  the  Revised  Statutes,  will  not, 
by  reason  of  such  spirits  being  below  proof  being  [bring]  a 
price  equal  to  the  taxes  due  and  payable  thereon^  but  will 
oring  a  price  equal  to,  or  greater  than,  the  tax  on  said  spirits, 
computed  only  upon  the  proof  gallons  contained  in  tlie  pack- 
ages, without  regard  to  the  greater  number  of  wine-gallons 
contained  therein,  then,  and  in  such  case,  upon  sale  being  so 
made,  tax-paid  stamps  to  the  amount  required  to  stamp  such 
spirits  as  if  the  tax  thereon  were  only  on  the  proof-gallons 
thereof  may,  under  such  rules  and  regulations  as  the  Com- 
missioner of  Internal  Revenue  shall  prescribe,  be  used  by  the 
collector  making  such  sale,  or  furnished  by  a  collector  to  a 
United  States  marshal,  or  to  any  other  government  officer 
making  such  sale  for  the  benefit  of  the  United  States,  without 
making  payment  for  said  stamps  so  used  or  delivered.  A  n  u 
collector  using  or  furnishing  stamps  in  manner  aforesaid, 
on  presenting  vouchers  satisfactory  to  the  Commissioner  of 
Internal  Revenue,  shall  be  allowed  credit  for  the  same  in 
settling  his  stamp  account  with  the  department.  In  such 
cases,  the  officer  selling  the  distilled  spirits  shall  affix,  or  cause 
to  be  affixed,  to  the  same  the  tax- paid  stamps  so  provided,  and 
shall  write  across  the  face  of  such  stamps  the  true  number  of 


DISTILLED    SPIRITS.  227 

proof  and  wine  gallons  contained  in  the  package,  the  amount 
of  tax  actually  paid  thereon,  and  also  the  words  "Affixed 

under  provisions  of  act  of ,  1879"  (inserting  the  date 

of  the  approval  of  this  act) . 

In  case  spirits  which  have  once  paid  the  tax  are  seized  and 
sold  under  process  of  distraint  for  the  collection  of  an  assessed 
tax  they  are  not  required  to  be  sold  subject  to  tax. 

Foreign  distilled  spirits  not  liable  to  tax  imposed  under  the 
internal-revenue  laws  when  forfeited  under  the  provisions  of 
the  customs  laws.     (24  Int.  Rev.  Rec,  393. ) 

As  to  destruction  of  spirits  which  will  not  sell  for  a  price 
equal  to  tax  on  the  proof  gallons  see  last  provision  of  section 
3450,  p.  357. 

IMPORTED    LIQUOR    STAMPS,    ETC. 

,  [Sec.  11.]  [Act  of  liar.  1, 1879  (20  Stat,  327).}     That  aU^^w' 
distilled  spirits,  wines,  and  malt  liquors,  imported  in  pipes,  wines,  and  malt 
hogsheads,  tierces,  barrels,  casks,  or  other  similar  pack-  stamped,  etc?  be 
ages,  shall  be  first  placed  in  public  store  or  bonded  ware- 
house, and  shall  not  be  removed  therefrom  until  the  same 
shall  have  been  inspected,  marked,  and  branded  by  a 
United  States  customs-gauger,  and  a  stamp  affixed  to 
each  package,  indicating  the  date  and  particulars  of  such 
inspection;  and  the  Secretary  of  the  Treasury  is  hereby 
authorized  to  prescribe  the  form  of,  and  provide,   the 
requisite  stamps,  and  to  make  all  regulations  which  he 
may  deem  necessary  and  proper  for  carrying  the  foregoing 
requirements  into  effect. 

Any  pipe,  hogshead,  tierce,  barrel,  cask,  or  other  pack-    Forfeiture. 
age  withdrawn  from  public  store  or  bonded  warehouse 
after  the  thirtieth  day  of  June,   eighteen  hundred  and 
seventy-nine,    purporting    to   contain   imported   liquor, 
found  without  having  thereon  the  stamp  hereby  required, 
shall  be,  with  its  contents,  forfeited  to  the  United  States;  w§jf*J4£t£'jg 
and  whenever  any  cask  or  package  of  imported  distilled  imported  spirits 
spirits  of  not  less  than  five  wine-gallons  is  filled  for  ship-  premises1  °of  tbl 
ment,  sale,  or  delivery  on  the  premises  of  any  wholesale  d'*°efale  liquor 
liquor-dealer,  the  same  shall  be  stamped  with  a  special 
stamp  for  imported  spirits,  under  such  rules  and  regula- 
tions as  the  Commissioner  of  Internal  Revenue  has  pre- 
scribed, or  may  hereafter  prescribe,  in  the  case  of  domes- 
tic distilled  spirits. 

Reimportation  of  articles  exported  (p.  337). 

Stamps  for  reimported  domestic  spirits.  (27  Int.  Rev.  Rec, 
333.) 

As  to  imported  liquors.  (See  tariff  act  of  Aug.  5,  1909;  par. 
300.) 

[Sec.  12.]  [Act  of  Mar.  1, 1879  (20  Stat,  327),  as  amend-  J^^Sa 
ed  by  sec.  12,  act  of  May  28,  1880  (21  Stat,  145).]    That  liquors  are  emp- 
every  person  who  empties  or  draws  off,  or  causes  to  beeriaced?mpst0  e 
emptied  or  drawn  off,  the  contents  of  any  package  of 
imported  liquors  stamped  as  above  required,  shall,  at  the 
time  of  such  emptying,  efface,  obliterate,  and  destroy  the 
stamp  thereon,  and  also  all  other  marks  or  brands  which 


228  DISTILLED   SPIRITS. 

shall  have  been  placed  thereon  in  accordance  with  the 
law  or  regulations  concerning  imported  liquors.  *  *  * 
eflactagstimps01  Every  cask  or  other  package  from  which  the  stamp  for 
imported  liquors  required  by  tins  act  to  be  placed  thereon 
shall  not  be  effaced,  obliterated,  or  destroyed,  on  empty- 
ing such  package,  shall  be  forfeited,  and  the  same  may  be 
seized  by  any  officer  of  internal  revenue  wherever  found; 
and  all  the  provisions  and  penalties  of  section  thirty-three 
sec.  3324.  hundred  and  twenty-four  of  the  Revised  Statutes  of  the 
United  States,  relating  to  empty  casks  or  packages  from 
which  the  marks,  brands,  or  stamps  have  not  been  effaced 
or  obliterated,  and  relating  to  the  removal  of  stamps  from 
packages,  and  to  having  in  possession  any  stamps  so 
removed,  shall  apply  to  the  stamps  for  imported  spirits 
herein  provided  for,  and  to  the  casks  or  other  packages  on 
which  such  stamps  shall  have  been  used. 

United  States  v.  Morris  Spiegel  (116  U.  S.,  270;  32  Int.  Rev. 
Rec,  54). 

Penalty  for     [Sec.  13-1  [Act  of  Mar.  1,  1879,  as  amended  by  sec.  13, 
usingn6empfyaci  of  May  28,  1880  {21  Stat.,  145).]  That  if  any  person 
ported  W1stamp^  shall  purchase  or  sell,  with  the  imported-liquor  stamp 
marks,    etc.; herein  required  remaining  thereon,  or  any  of  the  marks  or 
brands  which  shall  have  been  placed  thereon  in  accordance 
with  the  laws  or  regulations  concerning  imported  liquors 
remaining  thereon,  any  cask  or  other  package,  after  the 
same  has  been  once  used  to  contain  imported  liquors  and 
has  been  emptied;  or  if  any  person  shall  use  or  have  in 
possession  such  cask  or  package,  v/ith  any  imitation  of 
such  marks  or  brands,  for  the  purpose  of  placing  domestic 
distilled  spirits  therein  for  sale,     *     *     *     every  such 
cask  or  package,  with  its  contents,  if  any,  shall  be  for- 
feited to  the  United  States. 
Penalty.  And  every  such  person  who  shall  violate  any  of  the  pro- 

visions of  this  section  shall  be  liable  to  a  penalty  of  two 
hundred  dollars  for  every  such  cask  or  package  so  pur- 
chased, sold,  manufactured,  used,  or  had  in  possession. 

Grape  brandy  used  for  the  fortification  of  wine. 
wine  spirits     Sec.  42.  [Act  ofOct.  1,  1890  {26  Stat,  621).]     That  any 

may  be  used  free  ,  h  J  .'  ,         /         ■,      J  i--n 

of  tax.  producer  or  pure  sweet  wines,  who  is  also  a  distiller, 

authorized  to  separate  from  fermented  grape-juice,  under 
internal-revenue  laws,  wine  spirits,  may  use,  free  of  tax, 
in  the  preparation  of  such  sweet  wines,  under  such  regula- 
tions and  after  the  filing  of  such  notices  and  bonds, 
together  with  the  keeping  of  such  records  and  the  rendi- 
tion of  such  reports  as  to  materials  and  products,  as  the 
Commissioner  of  Internal  Revenue  with  the  approval  of 
the  Secretary  of  the  Treasury  may  prescribe,  so  much  of 
such  wine  spirits  so  separated  by  him  as  may  be  necessary 
to  fortify  the  wine  for  the  preservation  of  the  saccharine 
matter  contained  therein: 
Limitations.  Provided,  That  the  wine  spirits  so  used  free  of  tax  shall 
not  be  in  excess  of  the  amount  required  to  introduce  into 


DISTILLED   SPIRITS.  229 

such  sweet  wines  in  (an)  alcoholic  strength  equal  to  four- 
teen per  centum  of  the  volume  of  such  wines  after  such 
use : 

Provided  further,  That  such  wine  containing  after  such 
fortification  more  than  twenty-four  per  centum  of  alcohol,  strv  lc  °  h  o  1 1  c 
as  defined  by  section  thirty-two  hundred  and  forty-nine  or 
the  Revised  Statutes,  shall   be  forfeited  to  the  United    Forfeiture. 
States : 

Provided  further,  That  such  use  of  wine  spirits  free  from 
tax  shall  be  confined  to  the  months  of  August,  September,    confined  to 
October,     November,     December,     January,     February, certam  months' 
March,  and  April  of  each  year. 

The  Commissioner  of  Internal  Revenue,  in  determining 
the  liability  of  any  distiller  of  fermented  grape-juice  to 
assessment  under  section  thirty-three  hundred  and  nine  of  u^esrsessi!?  ?nt3 
the  Revised  Statutes,  is  authorized  to  allow  such  distiller 3309, credits. 
credit  in  his  computation  for  the  wine  spirits  used  by  him 
in  preparing  sweet  wine  under  the  provisions  of  this  sec- 
tion. 

Sec.  43.  [Act  of  Oct.  1,  1890  (26  Stat,  567)  as  amended 
by  sec.  68,  act  of  Aug.  28,  1894  (28  Stat,  509),  and  act 
of  June  7,  1906  (34  Stat,  215).]  That  the  wine  spirits fin^dinespiritsde' 
mentioned  in  section  forty-two  of  this  Act  is  the  product 
resulting  from  the  distillation  of  fermented  grape  juice, 
to  which  water  may  have  been  added  prior  to,  during,  or 
after  fermentation,  for  the  sole  purpose  of  facilitating  the 
fermentation  and  economical  distillation  thereof,  and  shall 
be  held  to  include  the  product  from  grapes  or  their  residues, 
commonly  known  as  grape  brandy;  and  the  pure  sweet 
wine,  which  may  be  fortified  free  of  tax,  as  provided  in 
said  section,  is  fermented  grape  juice  only,  and  shall 
contain  no  other  substance  whatever  introduced  before, 
at  the  time  of,  or  after  fermentation,  except  as  herein 
expressly  provided;  and  such  sweet  wine  shall  contain  not 
less  than  four  per  centum  of  saccharine  matter,  which 
saccharine  strength  may  be  determined  by  testing  with 
Balling's  saccharometer  or  must  scale,  such  sweet  wine, 
after  the  evaporation  of  the  spirits  contained  therein,  and 
restoring  the  sample  tested  to  original  volume  by  addition 
of  water: 

Provided,  That  the  addition  of  pure  boiled  or  condensed 
grape  must  or  pure  crystallized  cane  or  beet  sugar  or  pure 
anhydrous  sugar  to  the  pure  grape  juice  aforesaid,  or  the 
fermented  product  of  such  grape  juice  prior  to  the 
fortification  provided  by  this  Act  for  the  sole  purpose  of 
perfecting  sweet  wines  according  to  commercial  standard, 
or  the  addition  of  water  in  such  quantities  only  as  may  be  when  water 
necessary  in  the  mechanical  operation  o  grape  conveyors, may  euse  " 
crushers,  and  pipes  leading  to  fermenting  tanks,  shall  not 
be  excluded  by  the  definition  of  pure  sweet  wine  afore- 
said: 

Provided,  however,  That  the  cane  or  beet  sugar,  or  pure 
anhydrous  sugar,  or  water,  so  used  shall  not  in  either  case 


230  DISTILLED   SPIRITS. 

be  in  excess  of  ten  per  centum  of  the  weight  of  the  wine 
to  be  fortified  under  this  Act: 

And  provided  further,  That  the  addition  of  water  herein 
authorized  shall  be  under  such  regulations  and  limitations 
as  the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  from  time  to  time 
prescribe;  but  in  no  case  shall  such  wines  to  which  water 
a  lcohoiic/^s  oeen  added  be  eligible  for  fortification  under  the  provi- 

strength       when     .  if  J        J     .  J  I 

water  has  been  sions  oj  this  Act  where  the  same, aj  ter  jer  mentation  ana  bejore 
used"  fortification,  have  an  alcoholic  strength  of  less  than  five  per 

centum  of  their  volume. 

Sec.  44.  That  any  person  who  shall  use  wine  spirits,  as 
defined  by  section  fifty-four  (forty-three)  of  this  act,  or 
other  spirits  on  which  the  internal-revenue  tax  has  not 
been  paid,  otherwise  than  within  the  limitations  set  forth 
in  section  fifty-five  (forty-two)  of  this  act,  and  in  accord- 
ance with  the  regulations  made  pursuant  to  this  act,  shall 
lawfuuise  o? wine De  liable  to  a  penalty  of  double  the  amount  of  the  tax  on 
spirits.  the    wine   spirits   or   other   spirits   so   unlawfully   used. 

Whenever  it  is  impracticable  in  any  case  to  ascertain  the 
quantity  of  wine  spirits  or  other  spirits  that  have  been 
used  in  violation  or  this  act  in  mixtures  with  any  wanes, 
all  alcohol  contained  in  such  unlawful  mixtures  of  wine 
with  wine  spirits  or  other  spirits  in  excess  of  ten  per 
centum  shall  be  held  to  be  unlawfully  used: 
uiegauayeaddelter     Provided,  however,  That  if  water  has  been  added  to  such 
unlawful  mixtures,  either  before,  at  the  time  of,  or  after 
such  unlawful  use  of  wine-spirits  or  other  spirits,  all  the 
alcohol  contained  therein  shall  be  considered  to  have  been 
^lcohoiby  vol- imiawfu]iy  used.     In  reference  to  alcoholic  strength  of 
weight.  wines  and  mixtures  of  wines  with  spirits  in  this  act  the 

measurement  is  intended  to  be  according  to  volume  and 
not  according  to  weight. 

Sec.  45.  That  under  such  regulations  and  official  super- 
vision, and  upon  the  execution  of  such  entries  and  the  giv- 
ing of  such  bonds,  bills  of  lading,  and  other  security  as  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  shall  prescribe,  any  pro- 
of WspMtsr  from  ducer  °f  pure  sweet  wines  as  defined  by  this  act  may  with- 
warehouse  free  draw  wine  spirits  from  any  special  bonded  warehouse  free 
of  tax,  in  original  packages,  in  any  quantity  not  less  than 
eighty  wine-gallons,  and  may  use  so  much  of  the  same  as 
may  be  required  by  him,  under  such  regulations,  and  after 
the  filing  of  such  notices  and  bonds,  and  the  keeping  of 
such  records,  and  the  rendition  of  such  reports  as  to 
materials  and  products  and  the  disposition  of  the  same  as 
the  Commissioner  of  Internal  Revenue  with  the  approval 
of  the  Secretary  of  the  Treasury  shall  prescribe,  infortifying 
the  pure  sweet  wines  made  by  him,  and  for  no  other  pur- 
pose, in  accordance  with  the  limitations  and  provisions  as 
to  uses,  amount  to  be  used,  and  period  for  using  the  same 
set  forth  in  section  fifty-three  (Jorty-two)  of  this  act;  and 


DISTILLED    SPIRITS.  231 

the  Commissioner  of  Internal  Revenue,  with  the  approval    Commissioner 
of  the  Secretary  of  the  Treasury,  is  authorized,  whenever  ™L  ascertain 
he  shall  deem  it  to  be  necessary  for  the  prevention  of  tuferyltc?111  dis" 
violations  of  this  law,  to  prescribe  that  wine-spirits  with- 
drawn under  this  section  shall  not  be  used  to  fortify  wines 
except  at  a  certain  distance  prescribed  by  him  from  any 
distillery,   rectifying-house,   winery,   or   other  establish- 
ment used  for  producing  or  storing-  distilled  spirits,  or  for 
making  or  storing  wines  other  than  wines  which  are  so 
fortified,  and  that  in  the  building  in  which  such  fortifica- 
tion of  wines  is  practiced  no  wines  or  spirits  other  than 
those  permitted  by  his  regulation  shall  be  stored. 

The  use  of  wine-spirits  free  of  tax  for  the  fortification  of  freYSQf  °Lspoirbe 
sweet  wines  under  this  act  shall  be  begun  and  completed  at  vineyard,  un- 
at  the  vineyard  of  the  wine-grower  where  the  grapes  are  ofeofficerpervlslon 
crushed  and  the  grape  juice  is  expressed  and  fermented, 
such  use  to  be  under  the  immediate  supervision  of  an  offi- 
cer of  internal  revenue,  who  shall  make  returns  describing 
the  kinds  and  quantities  of  wine  so  fortified,  and  shall  affix 
such  stamps  and  seals  to  the  packages  containing  such 
wines  as  may  be  prescribed  by  the  Commissioner  of  Inter- 
nal Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury;    and  the  Commissioner  of  Internal  Revenue 
shall  provide  by  regulations  the  time  within  which  wines    Regulations. 
so  fortified  with  the  wine  spirits  so  withdrawn  may  be 
subject  to  inspection,  and  for  final  accounting  for  the  use 
of  such  wine-spirits  and  for  rewarehousing  or  for  pay- 
ment of  the  tax  on  any  portion  of  such  wine-spirits  which 
remain  not  used  in  fortifying  pure  sweet  wines. 

Circular  637,  T.  D.  G03;  Circular  730,  T.  D.  1436. 

Sec.  46.  That  wine-spirits  may  be  withdrawn  from  withdrawal 
special  bonded  warehouses  at  the  instance  of  any  person  fortify l  rw  in  e^ 
desiring  to  use  the  same  to  fortify  any  wines,  in  accord- j^tretnded  for  ex 
ance  with  commercial  demands  of  foreign  markets,  when 
such  wines  are  intended  for  exportation,  without  the  pay- 
ment of  tax  on  the  amount  of  wine  spirits  used  in  such 
fortification,  under  such  regulations,  and  after  making 
such  entries,  and  executing  and  filing  with  the  collector  of 
the  district  from  which  the  removal  is  to  be  made  such, 
bonds  and  bills  of  lading,  and  giving  such  other  addi- 
tional security  to  prevent  the  use  of  such  wine-spirits  free 
of  tax  otherwise  than  in  the  fortification  of  wine  intended 
fm'  exportation,  and  for  the  due  exportation  of  the  wine 
so  fortified,  as  may  be  prescribed  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of 
the  Treasury;  and  all  of  the  provisions  of  law  governing 
the  exportation  of  distilled  spirits  free  of  tax,  so  far  as 
applicable,  shall  apply  to  the  withdrawal  and  use  of  wine- 
spirits  and  the  exportation  of  the  same  in  accordance  with 
this  section;  and  the  Commissioner  of  Internal  Revenue 
is  authorized,  subject  to  approval  bv  the  Secretary  of  the 
Treasury,  to  prescribe  that  wine  spirits  intended  for  the 


to 
e  s 


232  DISTILLED   SPIRITS. 

fortification  of  wines  under  this  section  shall  not  be  intro- 
duced into  such  wines  except  under  the  immediate  super- 
vision of  an  officer  of  internal  revenue,  who  shall  make 
returns  describing  the  kinds  and  quantities  of  wine  so  for- 
tified, and  shall  affix  such  stamps  and  seals  to  the  pack- 
ages containing  such  wines  as  may  be  prescribed  by  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury.  Whenever  such  wine- 
spirits  are  withdrawn  as  provided  herein  for  the  fortifica- 
tion of  wines  intended  for  exportation  by  sea  they  shall  be 
introduced  into  such  wines  only  after  removal  from  stor- 
age and  arrival  alongside  of  the  vessel  which  is  to  trans- 
port the  same ;  and  whenever  transportation  of  such  wines 
is  to  be  effected  by  land  carriage  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of 
the  Treasury,  shall  prescribe  such  regulations  as  to  sealing 
packages  and  vehicles  containing  the  same,  and  as  to  the 
supervision  of  transportation  from  the  point  of  departure, 
which  point  shall  be  determined  as  the  place  where  such 
wine-spirits  may  be  introduced  into  such  wines  to  the 
point  of  destination  as  may  be  necessary  to  insure  the  due 
exportation  of  such  fortified  wines. 

As  to  Wds,  see  Section  3,  Act  of  June  7,  1906,  p.  233. 

Provisions  of  Regulations  29,  governing  the  exportation  of 
distilled  spirits,  extended  to  withdrawal  of  brandy  for  use  in 
fortifying  wines  for  export,  and  to  the  exportation  of  such  for- 
tified wines.    (T.  D.  1663.) 

Re-import  a-     Sec.  47.  That  all  provisions  of  law  relating  to  the  re-im- 
tion-  portation  of  any  goods  of  domestic  growth  or  manufacture 

which  were  originally  liable  to  an  internal-revenue  tax 
shall  be,  as  far  as  applicable,  enforced  against  any  domes- 
tic wines  sought  to  be  re-imported;    and  duty  shall  be 
levied  and  collected  upon  the  same  when  re-imported,  as 
an  original  importation. 
penalty  for     Sec.  48.  That  any  person  using  wine  spirits  or  other 
using  spirits  inSpirits  which  have  not  been  tax-paid  in  fortifying  wine 
SrryStoiIwes  otherwise  than  as  provided  for  in  this  act,  shall  be  guilty 
of  a  misdemeanor,  and  shall,  on  conviction  thereof,  be 
punished  for  each  offense  by  a  fine  of  not  more  than  two 
thousand  dollars,  and  for  every  offense  other  than  the 
first  also  by  imprisonment  for  not  more  than  one  year. 

Sec.  49.  [Act  Oct.  1,  1890  (26  Stat.,  567),  as  amended  by 
Sec.  2,  Act  June   7,  1906  (34  Stat,  215).]     That  wine 
iieoovery     of  spirits  used  in  fortifying  wines  may  be  recovered  from 
filing SLeinsucn  wine  onlV  on  tne  premises  of  a  duly  authorized 
grape-brandy  distiller;  and  for  the  purpose  of  such  recov- 
ery wine  so  fortified  may  be  received  as  material  on  the 
premises  of  such  a  distiller,  on  a  special  permit  of  the  col- 
lector of  internal  revenue  in  whose  district  the  distillery 
is  located ;  and  the  distiller  will  be  held  to  pay  the  tax  on 
a  product   from  such  wines  as  will  include  both  the  alco- 
holic strength  therein  produced  by  the  fermentation  of 
the  grape  juice  and  that  obtained  from  the  added  distilled 
§  3309.  spirits,  subject,  however,  to  the  provisions  of  section  thirty- 


DISTILLED    SPIRITS.  233 

three  hundred  and  nine  of  the  Revised  Statutes  of  the  United 
States,  as  amended  by  section  six  of  the  Act  entitled  " An  Act 
to  amend  the  laws  relating  to  internal  revenue"  approved 
March  first,  eighteen  hundred  and  seventy-nine;  and  such 
spirits  so  recovered  may  he  used  hy  such  distiller  to  fortify 
wines  as  authorized  hy  section  forty  two  of  the  aforesaid  Act, 
approved  October  first,  eighteen  hundred  and  ninety. 

[An  act  to  amend  existing  laws  relating  to  the  fortification  of  pure  sweet  wines,  ap- 
proved June  7,  1906  (34  Stat.,  215).] 

Sec.  3.  That  the  Commissioner  of  Internal  Revenue  is  .  Gaugertobeas- 
1  ,  ,-,        .        i    .  •  i  i  i  •  signed    at    each 

hereby  authorized  to  assign  at  each  winery  where  wmes  winery. 
are  to  be  fortified  such  number  of  gaugers  or  storekeeper- 
gaugers,  in  the  capacity  of  gaugers,  for  special  duties  as 
may  be  necessary  for  the  proper  supervision  of  the  making 
and  fortifying  of  such  wines,  and  the  compensation  of 
such  officers  shall  not  exceed  five  dollars  per  diem  while 
so  assigned,  together  with  their  actual  and  necessary 
traveling  expenses,  and  also  a  reasonable  allowance  for 
their  board  bills,  to  be  fixed  by  the  Commissioner  of 
Internal  Revenue,  but  not  to  exceed  two  dollars  per  day 
for  said  board  bills;  and  to  cover  the  expenses  to  the 
Government  attending  the  making  and  fortification  of 
such  sweet  wmes  there  shall  be  levied  and  assessed  against 
each  maker  of  such  wines,  and  collected  monthly,  a  charge  wine  maker 
of  three  cents  on  each  taxable  gallon  of  brandy  used  bycenTfdontheach 
him  in  the  fortification  of  such  wines  during  the  preceding {^dyus©ion  °f 
month.  That  bonds  hereafter  given  under  the  provisions 
of  the  aforesaid  Act  of  October  first,  eighteen  hundred  Bonds, 
and  ninety,  as  amended,  shall  be  conditioned  for  the  pay- 
ment of  the  tax  on  all  brandy  removed  thereunder  and 
not  used  and  accounted  for  within  the  time  and  in  the 
manner  required  by  law  and  regulations,  and  for  the  pay- 
ment of  all  charges  herein  imposed  on  the  brandy  so  with- 
drawn and  used;  and  the  said  bonds  shall  contain  such 
other  conditions  as  the  Commissioner  of  Internal  Revenue 
with  the  approval  of  the  Secretary  of  the  Treasury,  may 
by  regulation  prescribe. 

Sec.  4.  That  where  brandy  to  be  used  in  the  f ortifica- m^{™3v°[ 
tion  of  wine  is  distilled  on  premises  adjacent  to  the  winery  on  winery  prem- 

E remises  the  Commissioner  of  Internal  Revenue  may,  inlbe: 
is  discretion,  authorize  the  erection  on  either  of  said 
premises  of  fermenting  vats  for  material  to  be  used  either 
m  the  manufacture  of  such  wmes  or  the  brandy  to  be  used 
in  the  fortification  thereof;  and  all  such  materials  used 
received  on  either  of  said  premises  shaU  be  under  the 
supervision  of  the  officer  assigned  to  such  winery,  and 
shall  be  accounted  for  at  such  times  and  in  such  manner 
as  the  Commissioner  may  direct. 

Sec.  5.  That  the  provisions  of  sections  thirty-two  hun-^g^11^? 
dred  and  twenty-one  and  thirty-two  hundred  and  twenty- 
three  of  the  Revised  Statutes  of  the  United  States,  as 
amended  by  an  Act  approved  March  first,  eighteen  hun- 
dred and  seventy-nine,   are  hereby  extended  to  grape 


234 


DISTILLED   SPIRITS. 


brandy  withdrawn  for  use  in  the  fortification  of  sweet 
wines,  and  which,  prior  to  such  use,  is  accidentally  de- 
stroyed by  fire  or  other  casualty  while  stored  in  the  forti- 
fying room  on  the  winery  premises. 
Recovery     of     Sec.  6.  That  any  person  who  by  any  process  recovers 
Sritef rectifying  from  wines  fortified  under  the  provisions  of  the  aforesaid 
etc.  'Act  approved  October  first,  eighteen  hundred  and  ninety, 

or  amendments  thereto,  any  brandy  or  wine  spirits  used 
in  the  manufacture  or  fortification  of  said  wine,  otherwise 
than  is  provided  for  in  said  Act  and  its  amendments,  or 
who  shall  rectify,  mix,  or  compound  with  other  distilled 
spirits  such  fortified  wines  or  grape  brandy  or  wine 
spirits  unlawfully  recovered  therefrom,  shall,  on  convic- 
penaity.  tion,  be  punished  for  each  such  offense  by  a  fine  of  not  less 
than  two  hundred  dollars  nor  more  than  one  thousand 
dollars.  But  the  provisions  of  this  section,  and  the  pro- 
visions of  section  thirty-two  hundred  and  forty-four  of  the 
Revised  Statutes  of  the  United  States,  as  amended,  re- 
Exception,  lating  to  rectification,  shall  not  be  held  to  apply  to  the 
blending  of  pure  sweet  wines  fortified  under  the  provisions 
of  the  said  Act  of  October  first,  eighteen  hundred  and 
ninety,  or  amendments  thereto,  where  such  wines  are 
blended  for  the  sole  purpose  of  perfecting  the  same  ac- 
cording to  commercial  standard. 

Regulations  No.  28,  revised,  relative  to  withdrawal  free  of  tax 
of  spirits  for  fortification  of  pure  sweet  wines. 

Sweet  wines  fortified  with  spirits  free  from  tax  can  not  be  used 
by  a  rectifier  in  the  production  of  imitation,  spurious,  or  com- 
pound liquors.     (T.  D.  539,  June  26,  1902.) 

Grape  juice  treated  with  the  fumes  of  sulphur  not  eligible  for 
fortification  as  pure  sweet  wine  under  tariff  act  of  October  1, 1890, 
and  amendments  thereto.     (T.  D.  1314.) 

Suspension  of  the  provision  of  regulations  prohibiting  use  of 
fortified  wines  in  the  manufacture  or  preparation  of  patent  or 
proprietary  medicines  or  compounds.     (T.  D.  1435.) 

[Act  of  March  3,  1897  (29  Stat.,  626).] 

AN  ACT  To  allow  the  bottling  of  distilled  spirits  in  bond. 

Bottling  of  dis-      Sec.  1.  That  whenever  any  distilled  spirits  deposited  in 
bond.  spiritS  mthe  warehouse  of  a  distillery  having  a  surveyed  daily 
capacity  of  not  less  than  twenty  bushels  of  grain,  which 
capacity  or  not  less  than  twenty  bushels  thereof  is  com- 
monly used  by  the  distiller,  have  been  duly  entered  for 
withdrawal  upon  payment  of  tax,  or  for  export  in  bond, 
and  have  been  gauged  and  the  required  marks,  brands, 
and  tax-paid  stamps  or  export  stamps,  as  the  case  may  be, 
have  been  affixed  to  the  package  or  packages  containing 
the  same,  the  distiller  or  owner  of  said  distilled  spirits,  if 
he  has  declared  his  purpose  so  to  do  in  the  entry  for  with- 
spiriis  entered  drawal,  which  entry  for  bottling  purposes  may  be  made  by 
f„r  bottling  pur-  (|)0  owner  as  we]l  as  the  distiller,  may  remove  such  spirits 

post's      in      wai  e-  .  .  i  i   •    i        i       n  l 

house.  to  a  separate  portion  ot  said  warehouse  which  shall  be  set 

apart  and  used  exclusively  for  that  purpose,  and  there, 
under  the  supervision  of  a  United  States  storekeeper,  or 
storekeeper  and  gauger,  in  charge  of  such  warehouse,  may 


DISTILLED    SPIRITS.  235 

immediately  draw  off  such  spirits,  bottle,  pack,  and  case 
the  same :  Provided,  That  for  convenience  m  such  process 
any  number  of  packages  of  spirits  of  the  same  kind,  differ- 
ing only  in  proof,  but  produced  at  the  same  distillery  by 
the  same  distiller,  may  be  mingled  together  in  a  cistern 
provided  for  that  purpose,  but  nothing  herein  shall 
authorize  or  permit  any  mingling  of  different  products,  or 
of  the  same  products  of  different  distilling  seasons,  or  the 
addition  or  the  subtraction  of  any  substance  or  material 
or  the  application  of  any  method  or  process  to  alter  or 
change  in  any  way  the  original  condition  or  character  of 
the  product  except  as  herein  authorized;  nor  shall  there 
be  at  the  same  time  in  the  bottling  room  of  any  bonded 
warehouse  any  spirits  entered  for  withdrawal  upon  pay- 
ment of  the  tax  and  any  spirits  entered  for  export: 
Provided  also,  That  under  such  regulations  and  limitations  Regulations, 
as  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  may  prescribe, 
the  provisions  of  tins  Act  may  be  made  to  apply  to  the 
bottling  and  casing  of  fruit  brandy  in  special  bonded 
warehouses. 

Every  bottle  when  filled  shall  have  affixed  thereto  and  aiJ*dm p'  how 
passing  over  the  mouth  of  the  same  such  suitable  adhesive 
engraved  strip  stamp  as  may  be  prescribed,  as  hereinafter 
provided,  and  shall  be  packed  into  cases  to  contain  six 
bottles  or  multiples  thereof,  and  in  the  aggregate  not  less 
than  two  nor  more  than  five  gallons  in  each  case,  which 
shall  be  immediately  removed  from  the  distillery  premises. 
Each  of  such  cases  shall  have  affixed  thereto  a  stamp  st£^pSafl*°edave 
denoting  the  number  of  gallons  therein  contained,  such 
stamp  to  be  affixed  to  the  case  before  its  removal  from  the 
warehouse,  and  such  stamps  shall  have  a  cash  value  of 
ten  cents  each,  and  shall  be  charged  at  that  rate  to  the 
collectors  to  whom  issued,  and  shall  be  paid  for  at  that 
rate  by  the  distiller  or  owner  using  the  same. 

And  there  shall  be  plainly  burned  on  the  side  of  each    Branding     of 

•  CliSfS 

case,  to  be  known  as  the  Government  side,  the  proof  of 
the  spirits,  the  registered  distillery  number,  the  State  and 
district  in  which  the  distillery  is  located,  the  real  name  of 
the  actual  bona  fide  distiller,  the  year  and  distilling 
season,  whether  spring  or  fall,  of  original  inspection  or 
entry  into  bond,  and  the  date  of  bottling,  and  the  same 
wording  shall  be  placed  upon  the  adhesive  engraved  strip 
stamp  over  the  mouth  of  the  bottle.  It  being  understood 
that  the  spring  season  shall  include  the  months  from 
January  to  July,  and  the  fall  season  the  months  from 
July  to  January. 

And  no  trade  marks  shall  be  put  upon  any  bottlesUnless    Trade  marks. 
the  real  name  of  the  actual  bona  fide  distiller  shall  also  be 
placed  conspicuously  on  said  bottle. 

Combination  cases  of  spirits  bottled  in  bond.     (T.  D.  888.) 
Case  stamps  for  distilled  spirits  bottled  for  export.     (Cir.  No. 
6;   Int.  Rev.  Cir.  No.  489,  Jan.  6,  1898;  T.  D.  18763.) 


236 


DISTILLED   SPIKITS. 


Regulations. 


Change  of  date  on  and  use  of  case  stamps  printed  for  bottling 
distilled  spirits  in  fall  of  1897.  (Cir.  No.  10;  Int.  Rev.  490,  Jan. 
12,  1898.;  T.  D.  18802;  Art.  21,  Reg.  No.  23.) 

Case  stamps.  (Cir.  No.  55;  Int.  Rev.  492,  Mar.  29,  1898; 
T.  D.  19155;   Cir.  No.  552;   T.  D.  32,  1900.) 

"What  the  Government  stamp  on  bottled-in-bond  goods  guaran- 
tees as  to  purity  or  quality  of  the  spirits.  The  Government 
assumes  no  responsibility  with  respect  to  claims  of  dealers  in 
advertising  spirits.     (T.  D.  1299.) 

Using  undersized  bottles  or  underfilling  bottles  when  bottling 
spirits  in  bond  prohibited.  Suspension  of  issue  of  stamps  on 
account  of  persistent  violation  of  requirements,  and  forfeiture 
of  goods  in  certain  cases.  (Circular  letter,  Oct.  6,  1897;  43  Int. 
Rev.  Rec,  374.) 

Bottling  of  spirits  in  bond.  No  foreign  materials  to  be  added. 
(T.  D.  1433.) 

Bottling  warehouses  for  use  of  different  distilleries.  (T.  D. 
531;  Cir.  No.  631;  T.  D.  555;  Regulations  No.  23,  rev.,  p.  12.) 

Cases  of  spirits  bottled  in  bond  should  be  entered  on  Form  52. 
(T.  D.  808;  Regulations  No.  23,  rev.,  p.  23.) 

Testing  bottles  for  containing  bottled-in-bond  spirits.  (Cir. 
No.  681;  T.  D.  991  and  T.  D.  1063;  Regulations  No.  23,  rev., 
p.  18.) 

Stamps  and  brands  on  cases  of  bottled-in-bond  whiskv  should 
be  kept  intact.     (T.  D.  1076.) 

Discontinuance  of  serial  numbers  on  case  and  strip  stamps. 
(T.  D.  1573.) 

Caution  notice  on  spirits  bottled  in  bond.     (T.  D.  1491.) 

Tax  will  be  assessed  and  collected  on  gains  in  bottling  in  excess 
of  one-half  gallon  per  package,  but  in  ascertaining  the  quantity 
to  be  assessed  credit  will  be  allowed  for  the  excessive  loss  paid 
at  the  time  of  withdrawal.  (Letter  to  Collector  Heiner,  Oct.  25, 
1910.) 

Bottled-in-bond  whisky.  Where  proof  is  less  than  99  per  cent. 
(T.  D.  943.) 

Sec.  2.  That  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may, 
by  regulations,  prescribe  the  mode  of  separating  and 
securing  the  additional  warehouse,  or  portion  of  the  ware- 
house hereinbefore  required  to  be  set  apart,  the  manner 
in  which  the  business  of  bottling  spirits  in  bond  shall  be 
carried  on,  the  notices,  bonds,  and  returns  to  be  given 
and  accounts  and  records  to  be  kept  by  the  persons  con- 
of  ducting  such  business,  the  mode  and  time  of  inspection  of 
such  spirits,  the  accounts  and  records  to  be  kept  and 
returns  made  b\'  the  Government  officers,  and  all  such 
other  matters  and  tilings,  as  in  his  discretion,  he  may 
deem  requisite  for  a  secure  and  orderly  supervision  of 
said  business;  and  he  may  also,  with  the  approval  of  the 
Secretary  of  the  Treasury,  prescribe  and  issue  the  stamps 
required. 

The  distiller  may,  in  the  presence  of  the  United  States 
storekeeper  or  storekeeper  and  gauger,  remove  by  strain- 
ing through  cloth,  felt,  or  other  like  material  any  charcoal, 
sediment,  or  other  like  substance  found  therein,  and  may 
spirits  reduced  whenever  necessary  reduce  such  spirits  as  are  withdrawn 
y  adding  water.  ^  jjQ^^jjg  purposes  by  the  addition  of  pure  water  only  to 
one  hundred  per  centum  proof  lor  spirits  for  domestic  use, 
or  to  not  less  than  eighty  per  centum  proof  for  spirits  for 
export  purposes,  under  such  rules  and  regulations  as  may 
be  prescribed  by  the  Commissioner  of  Internal  Revenue 


Inspection 
spirits. 


DISTILLED    SPIRITS.  237 

with  the  approval  of  the  Secretary  of  the  Treasury;  and 
no  spirits  shall  be  withdrawn  for  bottling  under  this  Act 
until  after  the  period  shall  have  expired  within  which  a 
distiller  may  request  a  regauge  of  distilled  spirits  as  pro- 
vided in  section  fifty  of  the  Act  of  August  twenty-eighth, 
eighteen  hundred  and  ninety-four. 

No  spirits  to  be  withdrawn  for -bottling  until  the  expiration  of 
four  years  from  the  date  of  deposit  in  warehouse.  (Art.  14,  Regu- 
lation No.  23.) 

A  filtering  apparatus,  packed  with  cloth,  felt,  or  other  like 
material,  such  as  cotton  fiber  or  wood  or  paper  pulp,  may  be  used 
for  straining  spirits  to  be  bottled  in  bond.  Permission  to  use 
such  filters  will  be  granted  only  upon  the  express  condition  that 
the  packing  material  is  one  mentioned  in  the  statute,  or  similar 
thereto,  and  that  in  no  case  shall,  charcoal,  boneblack,  etc.,  be 
used,  as  such  materials  might  effect  changes  in  the  spirits  other 
than  the  mechanical  removal  of  matter  in  suspension.  (T.  D. 
21106,  1899;  Regulations  No.  23,  rev.,  p.  11.) 

The  distiller  is  responsible  for  the  correctness  of  the  proof. 
(T.  D.  930;  T.  D.  936.) 

Sec.  3.  That  all  distilled  spirits  intended  for  export    spirits  for  ex- 
under   the   provisions   of   this   Act   shall   be   inspected, po1 
bottled,   cased,   weighed,  marked,   labeled,   stamped,   or 
sealed  in  such  manner  and  at  such  time  as  the  Commis- 
sioner of  Internal  Revenue  may  prescribe;  and  the  said 
Commissioner,  with  the  approval  of  the  Secretary  of  the 
Treasury,  may  provide  such  regulations  for  the  trans- 
portation, entry,  reinspection,  and  lading  of  such  spirits 
for  export  as  may  from  time  to  time  be  deemed  necessary; 
and  all  provisions  of  existing  law  relating  to  the  exporta-  1JSSSLawS' 
tion  of  distilled  spirits  in  bond,  so  far  as  applicable,  and 
all  penalties  therein  imposed,  are  hereby  extended  and 
made   applicable  to  distilled  spirits  bottled  for  export 
under  the  provisions  of  this  Act,  but  no  drawback  shall    No  drawback. 
be  allowed  or  paid  upon  any  spirits  bottled  under  this  Act. 

Reimportation  of  distilled  spirits  bottled  in  bond  below  proof 
for  export.     (T.  D.  1006.) 
Bottled  spirits  for  export.     (Cir.  719;  T.  D.  1338.) 

Sec.  4.  That  where,  upon  inspection  at  the  bonded    ^g cc^encof  loss 
warehouse  in  which  the  spirits  are  bottled  as  aforesaid,01 
the  quantity  so  bottled  and  cased  for  export  is  less  than 
the  quantity  actually  contained  in  the  distiller's  original 
casks  or  packages  at  the  time  of  withdrawal  for  that  pur- 

Eose  the  tax  on  the  loss  or  deficiency  so  ascertained  shall 
e  paid  before  the  removal  of  the  spirits  from  such  ware- 
house, and  the  tax  so  paid  shall  be  receipted  and 
accounted  for  by  the  collector  in  such  manner  as  the 
Commissioner  of  Internal  Revenue  may  prescribe. 

Sec.  5.  That  where,  upon  reinspection  at  the  port  of  Reinspection. 
entry,  any  case  containing  or  purporting  to  contain  dis- 
tilled spirits  for  export  is  found  to  have  been  opened  or 
tampered  with,  or  where  any  mark,  brand,  stamp,  label, 
or  seal  placed  thereon  or  upon  any  bottle  contained 
therein  has  been  removed,  changed,  or  willfully  defaced, 
or  where  upon  such  reinspection  any  loss  or  discrepancy 
is  found  to  exist  as  to  the  contents  of  any  case  so  entered 


238  DISTILLED   SPIRITS. 

for  export,  the  tax  on  the  spirits  contained  in  each  such 
case  at  the  time  of  its  removal  from  warehouse  sha!l  be 
collected  and  paid. 
Penalties.  gEC>  g    That  any  person  who  shall  reuse  any  stamp  pro- 

vided under  this  Act  after  the  same  shall  have  been  once 
affixed  to  a  bottle  as  provided  herein,  or  who  shall  reuse  a 
bottle  for  the  purpose  of  containing  distilled  spirits  which 
has  once  been  filled  and  stamped  under  the  provisions  of 
this  Act  without  removing  and  destroying  the  stamp  so 
previously  affixed  to  such  bottle,  or  who  shall,  contrary  to 
the  provisions  of  this  Act  or  of  the  regulations  issued 
thereunder  remove  or  cause  to  be  removed  from  any 
bonded  warehouse  any  distilled  spirits  inspected  or  bot- 
tled under  the  provisions  of  this  Act,  or  who  shall  bottle  or 
case  any  such  spirits  in  violation  of  this  Act  or  of  any 
regulation  issued  thereunder,  or  who  shall,  during  the 
transportation  and  before  the  exportation  of  any  such 
spirits,  open  or  cause  to  be  opened  any  case  or  bottle  con- 
taining such  spirits,  or  who  shall  willfully  remove,  change, 
or  deface  any  stamp,  brand,  label,  or  seal  affixed  to  any 
such  case  or  to  any  bottle  contained  therein,  shall  for  each 
such  offense  be  fined  not  less  than  one  hundred  nor  more 
than  one  thousand  dollars,  and  be  imprisoned  not  more 
than  two  years,  in  the  discretion  of  the  court,  and  such 
spirts  shall  be  forfeited  to  the  United  States. 

Refilling  with  spirits  bottles  previously  used  for  bottling  spirita 
in  bond  without  destroying  the  stamps.  (Cir.  No.  647,  Sept.  19, 
1903;  T.  D.  696.) 

Refilling  bottles.  Guilty  intent  is  not  an  element  of  the  of- 
fense. The  principal  is  criminally  liable  for  the  acts  of  his  agent 
or  employee.  (U.  S.  v.  Guthrie,  171  Fed.  Rep.,  528;  T.  D. 
1520.) 

etcC,°"tamps.iting'  Sec.  7.  That  every  person  who,  with  intent  to  defraud, 
falsely  makes,  forges,  alters,  or  counterfeits  any  stamp 
made  or  used  under  any  provision  of  this  Act,  or  who  uses, 
sells,  or  has  in  Ins  possession  any  such  forged,  altered,  or 
counterfeited  stamp,  or  any  plate  or  die  used  or  which 
may  be  used  in  the  manufacture  thereof,  or  who  shall 
make,  use,  sell,  or  have  in  his  possession  any  paper  in 
imitation  of  the  paper  used  in  the  manufacture  of  any 
stamp  required  by  this  Act,  shall  on  conviction  be  pun- 
ished by  a  fine  not  exceeding  one  thousand  dollars  and 
by  imprisonment  at  hard  labor  not  exceeding  five  years. 
Act  of  Aug.  8,  gEC#  g.  That  nothing  in  this  Act  shall  be  construed  to 
exempt  spirits  bottled  under  the  provisions  of  this  Act 
from  the  operation  of  chapter  seven  hundred  and  twenty- 
eight  of  the  public  laws  of  the  Fifty-first  Congress,  ap- 
proved August  eighth,  eighteen  hundred  and  ninety. 

Act  of  August  8,  1890  (26  Stat.,  313):  That  all  fermented,  dis- 
tilled, or  other  intoxicating  liquors  or  liquids  transported  into 
any  State  or  Territory,  or  remaining  therein  for  use,  consump- 
tion, sale,  or  storage  therein,  shall  upon  arrival  in  such  State  or 
Territory  be  subject  to  the  operation  and  effect  of  the  laws  of 
such  State  or  Territory  enacted  in  the  exercise  of  its  police  pow- 
ers, to  the  same  extent  and  in  the  same  manner  as  though  such 
liquids  or  liquors  had  been  produced  in  such  State  or  Territory, 


1890 


DISTILLED    SPIRITS.  239 

and  shall  not  be  exempt  therefrom  by  reason  of  being  intro- 
duced therein  in  original  packages  or  otherwise.  (In  re  Rahrer, 
140  U.  S.,  545;  37  Int.  Rev.  Rec,  230;  Rhodes  v.  Iowa,  170 
U.  S.,412.) 

Provisions  of  the  criminal  code  (act  of  Mar.  4,  1909)  relative 
to  distilled  spirits.     (See  Appendix,  p.  421,  422.) 

DENATURED    ALCOHOL. 

[Act  of  June  7,  190G  (34  Stat.,  217).] 

AN  ACT  For  the  withdrawal  from  bond,  tax  free,  of  domestic  alcohol 
when  rendered  unfit  for  beverage  or  liquid  medicinal  uses  by 
mixture  with  suitable  denaturing  materials. 

Sec.   1.  That  from  and  after  January  first,  nineteen  hJP£??9S  a!fc,°- 

1  •  1  -J  "I  p  -I  -|  n    J1*J1    -LU<iy      *Jt?     Willi" 

hundred  and  seven,  domestic  alcohol  ol  such  degree  ol  drawn  tax-free  for 
proof  as  may  be  prescribed  by  the  Commissioner  of  Inter- 
nal Revenue,  and  approved  by  the  Secretary  of  the  Treas- 
ury, may  be  withdrawn  from  bond  without  the  payment 
of  internal-revenue  tax,  for  use  in  the  arts  and  industries, 
and  for  fuel,  light,  and  power,  provided  said  alcohol  shall 
have  been  mixed  in  the  presence  and  under  the  direction 
of  an  authorized  Government  oilicer,  after  withdrawal 
from  the  distillery  warehouse,  with  methyl  alcohol  or  other 
denaturing  material  or  materials,  or  admixture  of  the 
same,  suitable  to  the  use  for  which  the  alcohol  is  with- 
drawn, but  which  destroys  its  character  as  a  beverage 
and  renders  it  unfit  for  liquid  medicinal  purposes;  suchde^°t^aeddwhere 
denaturing  to  be  done  upon  the  application  of  any 
registered  distillery  in  denaturing  bonded  warehouses 
specially  designated  or  set  apart  for  denaturing  purposes 
only,  and  under  conditions  prescribed  by  the  Commis- 
sioner of  Internal  Revenue  with  the  approval  of  the  Secre- 
tary of  the  Treasury. 

The  character  and  quantity  of  the  said  denaturing ni^teerfai't ""  °f 
material  and  the  conditions  upon  which  said  alcohol  may  p  ^^.bed  by 
be  withdrawn  free  of  tax  shall  be  prescribed  by  the  Com- 
missioner of  Internal  Revenue,  who  shall,  with  the  ap- 
proval of  the  Secretary  of  the  Treasury,  make  all  neces- 
sary regulations  for  carrying  into  effect  the  provisions  of 
this  Act. 

Distillers,  manufacturers,  dealers  and  all  other  persons  oi.Books  and  re- 
furnishing,  handling  or  using  alcohol  withdrawn  from  Bonds     to     be 
bond  under  the  provisions  of  this  Act  shall  keep  suchglven- 
books  and  records,  execute  such  bonds  and  render  such 
returns  as  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  may  by 
regulation  require.     Such  books  and  records  shall  be  open 
at  all  times  to  the  inspection  of  any  internal-revenue 
officer  or  agent. 

Sec.  2.  That  any  person  who  withdraws  alcohol  f ree  prg°a^tlfdrr™: 
of  tax  under  the  provisions  of  this  Act  and  regulations  ai,  use  as  a  bever- 

.  1  .  °  i     age,  or  for  medici- 

made  m  pursuance  thereof,  and  who  removes  or  conceals  nai  purpose, 
same,  or  is  concerned  in  removing,  depositing  or  conceal- 
ing same  for  the  purpose  of  preventing  the  same  from 
being  denatured  under  governmental  supervision,   and 


240  DISTILLED   SPIRITS. 

any  person  who  uses  alcohol  withdrawn  from  bond  under 
the  provisions  of  section  one  of  this  Act  for  manufacturing 
any  beverage  or  liquid  medicinal  preparation,  or  know- 
ingly sells  any  beverage  or  liquid  medicinal  preparation 
made  in  whole  or  in  part  from  such  alcohol,  or  knowingly 
violates  any  of  the  provisions  of  this  Act,  or  who  shall 
recover  or  attempt  to  recover  by  redistillation  or  by  any 
other  process  or  means,  any  alcohol  rendered  unfit  for 
beverage  or  liquid  medicinal  purposes  under  the  pro- 
visions of  this  Act,  or  who  knowingly  uses,  sells,  conceals, 
or  otherwise  disposes  of  alcohol  so  recovered  or  redistilled, 
shall  on  conviction  of  each  offense  be  fined  not  more  than 
five  thousand  dollars,  or  be  imprisoned  not  more  than 
five  years,  or  both,  and  shall,  in  addition,  forfeit  to  the 
United  States  all  personal  property  used  in  connection 
with  his  business,  together  with  the  buildings  and  lots  or 
parcels  of  ground  constituting  the  premises  on  which  said 
unlawful  acts  are  performed  or  permitted  to  be  performed: 

eredaanderedena--^>ro'l'^e"^'    That   manufacturers   employing   processes   in 
tured.  which  alcohol,  used  free  of  tax  under  the  provisions  of 

this  Act,  is  expressed  or  evaporated  from  the  articles 
manufactured,  shall  be  permitted  to  recover  such  alcohol 
and  to  have  such  alcohol  restored  to  a  condition  suitable 
solely  for  reuse  in  manufacturing  processes  under  such 
regulations  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury  shall 
prescribe. 

Sec.  3.  (Obsolete.) 

This  section  provided  an  appropriation  for  payment  of  an 
additional  force  of  chemists,  internal-revenue  agents,  inspectors, 
deputy  collectors,  clerks,  laborers,  and  other  assistants,  the  force 
authorized  to  be  appointed  by  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury,  for 
a  period  of  two  years  without  compliance  with  the  conditions 
prescribed  by  the  civil  service  act  of  January  16,  1883. 

Sec.  4.  (Obsolete.) 

This  section  provided  for  a  report  to  Congress  at  its  next  ses- 
sion of  all  appointments  made  under  the  provisions  of  this  act 
and  regulations  prescribed  and  for  a  report  of  any  additional 
legislation  necessary  to  safeguard  the  revenue  and  secure  a 
proper  enforcement  of  the  law. 

[Amendment  to  the  act  of  June  7,  1906.) 

AN  ACT  To  amend  an  Act  entitled  "An  Act  for  the 
withdrawal  from  bond  tax  free  of  domestic  alcohol  when  rendered 
unfit  for  beverage  or  liquid  medicinal  uses  by  mixture  with  suitable 
denaturing  materials,"  approved  June  7, 1906.  (Act  of  Mar.  2,  1907; 
34  Stat.,  1250.) 

Denatured  ai-  Sec.  1 .  That  notwithstanding  anything  contained  in 
useVi  in  "nanufac- the  Act  entitled  "An  Act  for  the  withdrawal  from  bond 
chloroform ,el  and  tax  free  of  domestic  alcohol  when  rendered  unfit  for  bev- 
d< 'finite  chemical e rage  or  liquid  medicinal  uses  by  mixture  with  suitable 

substances.  ■     a  a  •    i  >>  it  j.i 

denaturing  material,  approved  June  seventh,  nineteen 
hundred  and  six,  domestic  alcohol  when  suitably  dena- 
tured may  be  withdrawn  from  bond  without  the  payment 


DISTILLED    SPIRITS.  241 

of  internal-revenue  tax  and  used  in  the  manufacture  of 
ether  and  chloroform  and  other  definite  chemical  sub- 
stances where  said  alcohol  is  changed  into  some  other 
chemical  substance  and  does  not  appear  in  the  finished 
product  as  alcohol:  Provided,  That  rum  of  not  less  than  t  Rum  or  not  less 
one  hundred  and  fifty  degrees  proof  may  be  withdrawn,  may    ^    with- 
for  denaturation  only,  in  accordance  with  the  provisions  Oration*61  dena" 
of  said  Act  of  June  seventh,  nineteen  hundred  and  six, 
and  in  accordance  with  the  provisions  of  this  Act. 

Sec.  2.  That  the  Commissioner  of  Internal  Revenue,  turfn^1  bonded 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  warehouses  may 
authorize  the  establishment  of  central  denaturing  bonded 
warehouses,  other  than  those  at  distilleries,  to  which 
alcohol  of  the  required  proof  may  be  transferred  from 
distilleries  or  distillery  bonded  warehouse  without  the 
payment  of  internal-revenue  tax,  and  in  which  such 
alcohol  may  be  stored  and  denatured.  The  establish- 
ment, operation,  and  custody  of  such  warehouses  shall  be 
under  such  regulations  and  upon  the  execution  of  such 
bonds  as  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  may  prescribe. 

Sec.  3.  That   alcohol" of  the  required  proof  may  be  .™d£ct»}5 
drawn  off,  for  denaturation  only,  from  receiving  cisterns  cisterns  may  be 
in  the  cistern  room  of  any  distillery  for  transfer  by  pipes Sresedbed  "egu- 
direct  to  any  denaturing  bonded  warehouse  on  the  distil-  iations. 
lery  premises  or  to  closed  metal  storage  tanks  situated  in 
the  distillery  bonded  warehouse,  or  from  such  storage 
tanks  to  any  denaturing  bonded  warehouse  on  the  distil- 
lery premises,  and  denatured  alcohol  may  also  be  trans- 
ported from  the  denaturing  bonded  warehouse,  in  such 
manner  and  hy  means  of  such  packages,  tanks  or  tank 
cars,  and  on  the  execution  of  such  bonds,  and  urider  such 
regulations  as  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  may 
prescribe.     And  further,  alcohol  to  be  denatured  may  be 
withdrawn  without  the  payment  of  internal-revenue  tax  wi^cd°r^ ™a£,m 
from  the  distillery  bonded  warehouse  for  shipment  to  cen-  distillery    ware- 
tral  denaturing  plants  in  such  packages,  tanks  and  tank  ^fte  ^'central 
cars,  under  such  regulations,  and  on  the  execution  of  sllcn  ednwarenousbe°nd" 
bonds  as  may  be  prescribed  by  the  Commissioner  of  In- 
ternal Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury. 

Sec.  4.  That  at  distilleries  producing  alcohol  from  any  ta™ffl?c1 *££ 
substance  whatever,  for  denaturation  only,  and  having  aty  not  exceedmg 
daily  spirit-producing  capacity  of  not  exceeding  one  hun-mayPp0rodu?e°ai- 
drecl  proof  gallons,  the  use  of  cisterns  or  tanks  of  such*jgj|]**^,,aF 
size  and  construction  as  may  be  deemed  expedient  may 
be  permitted  in  lieu  of  distillery  bonded  warehouses,  and 
the  production,  storage,  the  manner  and  process  of  dena- 
turing on  the  distillery  premises  the  alcohol  produced,  and 
transportation  of  such  alcohol,  and  the  operation  of  such 
distilleries  shall  be  upon  the  execution  of  such  bonds  and 
under  such  regulations  as  the  Commissioner  of  Internal 

72170°— 11 16 


242  DISTILLED   SPIRITS. 

Revenue,  with  the  approval  of  the  Secretary  of  the  Treas- 
teif  from  cw™In  U17>  may  prescribe,  and  such  distilleries  may  by  such 
provisions  of  ex-  regulations  be  exempted  from  such  provisions  of  the  ex- 
feting  laws.         isting  laws  relating  to  distilleries  as  may  be  deemed  expe- 
dient by  said  officials. 

Sec.  5.  That  the  provisions  of  this  Act  shall  take  effect 
on  September  first,  nineteen  hundred  and  seven. 

Regulations  concerning  denatured  alcohol,  No.  30,  rev.  July 
15,  1907,  and  Supplement  No.  1,  June  3,  1908. 

Circular  721,  April  27,  1908,  relates  to  the  use  of  stills  by  agri- 
cultural experiment  stations,  T.  D.  1347. 

Suggestions  regarding  the  manufacture  of  denatured  alcohol  at 
small  distilleries — Materials  available  for  such  use.  (Int.  Rev. 
Cir.  706,  Sept.  26,  1907,  T.  D.  1242.) 

Denatured-alcohol  regulations  explained.  Instructions  to  col- 
lectors, revenue  agents,  and  other  internal-revenue  field  officers 
concerning  the  sale  and  use  of  denatured  alcohol.  (T.  D.  1250, 
Oct.  12,  1907.)  _ 

Circular  relative  to  reports  of  manufacturers  or  wholesale  deal- 
ers handling  denatured  alcohol.     (Cir.  No.  732;  T.  D.  1438.) 

Retail  dealers  permitted  to  draw  off  denatured  alcohol  from 
original  packages  and  sell  in  quantities  not  exceeding  10  gallons 
at  any  one  time.     (T.  D.  1392.) 

Completely  denatured  alcohol  can  not  be  lawfully  sold  for 
bathing  purposes  or  any  medicinal  use.     (T.  D.  1495.) 


Chapter  Five. 
FE'IttlENTED   LIQUORS. 


Sec. 
31147 


3348. 
3349. 


3350. 


3351. 
3352. 


Sour  malt  liquors,  how  removable 
without  stamps. 

Brewers  selling  at  retail  at  brewery. 

Packages  to  be  marked;  penalty. 

One  brewer  purchasing  from  an- 
other. 

Permit  to  carry  on  business  at  an- 
other place  on  account  of  acci- 
dent. 

Unfermented  worts  sold  to  other 
brewers. 

Fermented    liquor   removed    from 

brewery  without  payment  of  tax 

forfeited.    Absence  of  stamps  to 

be  notice  and  evidence. 

3353.  Removal  or  defacement  of  stamps; 

penalty. 
3354  (amended).  Withdrawing  fermented 
liquor  from  unstamped  packages 
for  bottling,  or  bottling  on  brew- 
ery premises;  penalty.  Fer- 
mented liquor  permitted  to  be 
removed  from  brewery  through 
pipe  or  conduit  for  bottling  only. 
Act  of  June  18,  1890.  Removal  of  fer- 
mented liquors  for  export  with- 
out payment  of  tax-. 


Sec. 

3335.  Brewer's  notice. 

3336  (amended).  Bond. 

3337.  Books  and  monthly  statement. 
[3337c]  Section  3337  construed.     Assess- 
ment. 

3338.  Monthly  verification  of  entries  in 

books. 

3339  (amended).    Tax.  Fractional  parts 

of  a  barrel,  how  estimated. 
[3339a.]  Gallon  defined. 

3340  (amended).  Evading  tax,  making  or 

procuring  false  entries,  etc.; 
penalty. 

3341  (amended).  Stamps.     Permits. 

3342  (amended).  Stamps,  how  procured, 

affixed,  and  canceled. 
Penalty  for  fraud  and  neglect. 

3343.  Selling,  removing,  or  buying  fer- 

mented liquor  in  packages  with- 
out stamp  or  with  twice-used 
stamp;  penalty. 

3344.  Drawing    fermented     liquor    from 

package  without  stamp  or  with- 
out defacing  stamp;  penalty. 

3345.  Removal      for      storage      without 

stamps;  penalties. 
3346  (amended).  Making,  selling,  or  using 
false  or  counterfeit  stamps  or 
permits,  reusing  stamps,  haying 
removed  stamps  in  possession, 
selling  same;  penalty. 

Sec.  3335.  Every  brewer  shall,  before  commencing  or  of £™s'ss  notice 
continuing  business,  file  with  the  collector,  or  proper 
deputy  collector,  of  the  district  in  winch  he  designs  to 
carry  it  on  a  notice  in  writing,  stating  the  name  of  the 
person,  company,  corporation,  or  firm,  the  names  of  the 
members  of  any  such  company  or  firm,  the  places  of  resi- 
dence of  such  persons,  a  description  of  the  premises  on 
which  the  brewery  is  situated,  and  of  his  or  their  title 
thereto,  and  the  name  of  the  owner  thereof. 

A  person  manufacturing  for  sale  a  fermented  liquor,  made 
from  a  substitute  for  malt,  must  qualifv  as  a  brewer.  (T.  D. 
646.) 

Definition  of  brewer.  Special  tax  of  brewer.  (Sec.  3244, 
p.  133.) 

Sec.  3336  [as  amended  by  the  act  of  Apr.  29,  1886  (24 
Stat.,  15).]     Every  brewer,  on  filing  notice  as  aforesaid  of 
his  intention  to  commence  or  continue  business,     * 
shall  execute  a  bond  to  the  United  States,  to  be  approved 
by  the  collector  of  the  district,  in  a  sum  equal  to  three 

243 


Bond. 


244  FERMENTED  LIQUORS. 

times  the  amount  of  the  tax  which,  in  the  opinion  of  the 
collector,  said  brewer  will  be  liable  to  pay  during  any  one 
month,  and  conditioned  that  he  shall  pay,  or  cause  to  be 

Eaid,  as  herein  provided,  the  tax  required  by  law  on  all 
eer,  lager-beer,  ale,  porter,  and  other  fermented  liquors 
made  by  or  for  him,  Defore  the  same  is  sold  or  removed 
for  consumption  or  sale,  except  as  hereinafter  provided; 
and  that  he  shall  keep,  or  cause  to  be  kept,  a  book,  in  the 
manner  and  for  the  purposes  hereinafter  specified,  which 
shall  be  open  to  inspection  by  the  proper  officers,  as  by 
law  required;  and  that  he  shall  in  all  respects  faithfully 
comply,  without  fraud  or  evasion,  with  all  requirements 
of  law  relating  to  the  manufacture  and  sale  of  any  malt 
liquors  aforesaid;  and  he  shall  execute  a  new  bond  once  in 
four  years  and  whenever  required  so  to  do  by  said  collector, 
in  the  amount  above  named  and  conditioned  as  above  pro- 
vided, which  bond  shall  be  in  lieu  of  any  former  bond  or 
bonds  of  such  brewer  in  respect  to  all  liabilities  accruing 
after  its  approval  by  said  collector. 

In  case  of  incorporated  companies  the  bond  must  be  executed 
in  their  corporate  capacity  and  under  their  corporate  seals  and 
signatures. 

In  case  of  a  brewing  company  not  incorporated  the  name  of 
the  firm  as  well  as  of  each  member  thereof  must  be  recited  in 
the  bond,  which  should  be  signed  by  each  member  of  the  firm. 

No  provision  is  made  for  cancellation  of  bond  where  brewers 
have  gone  out  of  business  before  the  expiration  of  the  four  years. 
(T.  D.  648.) 

A  second  bond  given  voluntarily  during  the  four-year  period 
is  merely  cumulative  and  does  not  release  the  first  bond.  (T.  D. 
834.) 

Executors,  administrators,  assignees,  and  receivers  continuing 
the  business  must  execute  a  new  bond. 

Brewer's  books.  gEC  3337.  Every  person  who  owns  or  occupies  any 
brewery,  or  premises  used  or  intended  to  be  used  for  the 
purpose  of  brewing  or  making  such  fermented  liquors,  or 
who  has  such  premises  under  Ins  control  or  superintend- 
ence, as  agent  for  the  owner  or  occupant,  or  has  in  his 
possession  or  custody  any  brewing  materials,  utensils,  or 
apparatus,  used  or  intended  to  be  used  on  said  premises 
in  the  manufacture  of  beer,  lager-beer,  ale,  porter,  or  other 
similar  fermented  liquors,  either  as  owner,  agent,  or  super- 
intendent, shall,  from  day  to  day,  enter,  or  cause  to  be 
entered,  in  a  book  to  be  kept  by  him  for  that  purpose,  the 
kind  of  such  malt  liquors,  the  estimated  quantity  pro- 
duced in  barrels,  and  the  actual  quantity  sold  or  removed 
for  consumption  or  sale  in  barrels  or  fractional  parts  of 
barrels.  lie  shall  also,  from  day  to  day,  enter,  or  cause 
to  be  entered,  in  a  separate  book  to  be  kept  by  him  for 
that  purpose,  an  account  of  all  materials  by  him  pur- 
chased for  the  purpose  of  producing  such  fermented 
liquors,  including  grain  and  malt. 
^Monthly  state-  And  ne  s\Vd\\  render  to  the  collector,  or  the  proper 
deputy  collector,  on  or  before  the  tenth  day  or  each 
month,  a  true  statement,  in  writing,  in  duplicate,  taken 
from  his  books,  of  the  estimated  quantity  in  barrels  of 


FERMENTED   LIQUORS.  245 

such  malt  liquors  brewed,  and  the  actual  quantity  sold  or 
removed  for  consumption  or  sale  during  the  preceding 
month;  and  shall  verify,  or  cause  to  be  verified,  the  said 
statement,  and  the  facts  therein  set  forth,  by  oath,  to  be 
taken  before  the  collector  of  the  district,  or  proper  deputy 
collector,  according  to  the  form  required  by  law. 

Said  books  shall  be  open  at  all  times  for  the  inspection 
of  any  collector,  deputy  collector,  inspector,  or  revenue 
agent,  who  may  take  memorandums  and  transcripts 
therefrom. 

United  States  v.  Obermeyer  (5  Ben.,  541;  15  Int.  Rev.  Rec, 
83;  27  Fed.  Cas.,  211).  United  States  v.  Miller  (16  Int.  Rev. 
Rec,  25;  25  Fed.  Cas.,  1257). 

Brewers'  returns. — Returns  made  by  brewers  of  the  amount  of 
beer  manufactured  and  sold  by  them  are  made  under  compul- 
sion of  law  for  but  one  purpose,  namely,  the  collection  of  reve- 
nue for  the  United  States,  and  copies  thereof  »are  not  permitted 
to  be  furnished  to  any  persons  for  other  purposes.  (T.  D.  19443, 
1898.)     Verification  of  returns.     (T.  D.  1046.) 

[Sec.  3337a.]  [Act  of  May  13, 1876'  (19  Stat.,  53).]  That „££*$£> R- s- 
nothing  contained  in  section  three  thousand  three  hun- 
dred and  thirty-seven  of  the  Revised  Statutes  of  the 
United  States  shall  be  so  construed  as  to  authorize  an 
assessment  upon  the  quantity  of  materials  used  in  pro-    Quantity  of  ma- 

i       •  xi  ]    <t        ,i  p  t       •  £         terial    used    not 

ducmg  or  purchased  tor  the  purpose  or  producing,  rer-  evidence  for  pur- 
mented  or  malt  liquors,  nor  shall  the  quantity  of  materials  ^quantttyofuq- 
so  used  or  purchased  be  evidence,  for  the  purpose  of  tax- uor  produced. 
ation,  of  the  quantity  of  liquor  produced;  but  the  tax  on  as  aprovidedPain 
all  beer,  lager-beer,  ale,  porter,  or  other  similar  fermented  §3339>  R- s- 
liquor,  brewed  or  manufactured,  and  sold  or  removed  for 
consumption  or  sale,  shall  be  paid  as  provided  in  section 
three  thousand  three  hundred  and  thirty-nine  of  said 
statutes,  and  not  otherwise: 

Provided,  That  this  act  shall  not  apply  to  cases  of  fraud.    Casf  dof  fraud 
And  provided  further,  That  nothing  in  this  act  shall  have  ^no*  change  of 
the  effect  to  change  the  present  rules  of  law  respecting  evi-  ^fenceln  suits" 
dence  in  any  prosecution  or  suit.  etc. 

Bergdoll  v.  Pollock,  collector.  (95  U.  S.,  337;  24  Int.  Rev. 
Rec,  2.) 

Sec.  3338.  The  entries  made  in  such  books  shall,  on  or 
before  the  tenth  day  of  each  month,  be  verified  by  the  oath 
of  the  person  by  whom  they  are  made.  The  said  oath 
shall  be  written  in  the  book  at  the  end  of  such  entries,  and 
be  certified  by  the  officer  administering  the  same,  and 
shall  be  in  form  as  follows: 

I  do  swear  (or  affirm)  that  the  foregoing  entries  were  made  by  me;     Monthly  verifl- 
and  that  they  state  truly,  according  to  the  best  of  my  knowledge  and ^books.   entnes 
belief,  the  estimated  quantity  of  the  whole  amount  of  such  malt  liq- 
uors brewed,  and  the  actual  quantity  sold,  and  the  actual  quantity 

removed,  from  the  brewery  owned  by ,  in  the  county  of  —     — ; 

and,  further,  that  I  have  no  knowledge  of  any  matter  or  thing  required 
by  law  to  be  stated  in  said  entries  which  has  been  omitted  therefrom. 

And  the  owner,  agent,  or  superintendent  aforesaid  shall 
also,  in  case  the  original  entries  made  in  his  book  were  not 


246  FERMENTED   LIQUORS. 

made  by  himself,  subjoin  thereto  the  following  oath,  to  be 
taken  in  manner  as  aforesaid : 

I  do  swear  (or  affirm)  that,  to  the  best  of  my  knowledge  and  belief 
the  foregoing  entries  fully  set  forth  all  the  matters  therein  required  by 
law;  and  that  the  same  are  just  and  true,  and  that  I  have  taken  all 
the  means  in  my  power  to  make  them  so. 

Brewer  required  to  enter  all  malt  liquors  in  his  book.  "Malt 
liquor"  and  "fermented  liquor"  used  synonymously.  (First 
circuit  (Mass.),  1874,  United  States  v.  Dooley,  21  Int.  Rev.  Rec, 
115;  25  Fed.  Cas.  890,  No.  14984.) 

A  book  of  general  accounts  kept  by  a  brewer  in  conducting 
his  business  can  not  be  deemed  a  book  of  entries  of  materials 
purchased,  or  such  a  book  as  the  statute  requires.  (United 
States  v.  Bellingstein,  16  Int.  Rev.  Rec,  92;  Fed.  Cas.  No. 
14566.) 

minted  ii?quorser'  Sec-  3339  [as  amended  by  the  act  of  Apr.  12,  1902  (32 
Stat.,  90).]  There  shall  be  paid  on  all  beer,  lager-beer, 
ale,  porter,  and  other  similar  fermented  liquors,  brewed 
or  manufactured  and  sold,  or  stored  in  warehouse,  or 
removed  for  consumption  or  sale,  within  the  United 
States,  by  whatever  name  such  liquors  may  be  called,  a 
tax  of  one  dollar  for  every  barrel  containing  not  more  than 
thirty-one  gallons;  and  at  a  like  rate  for  any  other  quan- 
tity or  for  any  fractional  part  of  a  barrel.  In  estimating 
and  computing  such  tax,  the  fractional  parts  of  a  barrel 
shall  be  halves,  thirds,  quarters,  sixths,  and  eighths;  and 
any  fractional  part  of  a  barrel,  containing  less  than  one- 
eighth,  shall  be  accounted  one-eighth;  more  than  one- 
eighth,  and  not  more  than  one-sixth,  shall  be  accounted, 
one-sixth;  more  than  one-sixth,  and  not  more  than  one- 
fourth,  shall  be  accounted  one-fourth;  more  than  one- 
fourth,  and  not  more  than  one-third,  shall  be  accounted 
one-third;  more  than  one-third,  and  not  more  than  one- 
half,  shall  be  accounted  onerhalf ;  more  than  one-half,  and 
not  more  than  one  barrel,  shall  be  accounted  one  barrel; 
and  more  than  one  barrel,  and  not  more  than  sixty-three 
gallons,  shall  be  accounted  two  barrels,  or  a  hogshead. 
The  said  tax  shall  be  paid  by  the  owner,  agent,  or  super- 
intendent of  the  brewery  or  premises  in  which  such  fer- 
mented liquors  are  made,  and  in  the  manner  and  at  the 

Man-h°di9oint  of^me  hereinafter  specified:  Provided,  That  in  lieu  of  or  in 
addition  to  the  present  requirements  of  law  in  that  respect, 
all  stamps  used  for  denoting  the  tax  upon  fermented  liquors 
or  other  taxes  may,  in  the  discretion  of  the  Commissioner  of 
Internal  Revenue,  be  canceled  by  perforations  to  be  made  in 
such  manner  and  form  as  the  Commissioner  may  by  regula- 
tions prescribe. 

islation  of  recent  years  affecting  the  rate  of  tax  on  fer- 
mented liquors  is  given  i'or  reference,  aa  follows: 

[Act  of  June  13,  1898  (30  Stat.,  448).] 

Sec.  1.  That  there  shall  be  paid,  in  lieu  of  the  tax  of  one  dollar 
now  imposed  by  law,  a  tax  of  two  dollars  on  all  beer,  lager  beer, 
ale,  porter,  and  other  similar  fermented  liquors,  brewed  or  man- 
ufactured and  Bold,  or  stored  in  warehouse,  or  removed  for  con- 
sumption or  sale,  within  the  United  States,  by  whatever  name 
such  liquors  may  be  called,  for  every  barrel  containing  not  more 


FERMENTED    LIQUORS.  247 

than  thirty -one  gallons;  and  at  a  like  rate  for  any  other  quantity 
or  for  the  fractional  parts  of  a  barrel  authorized  and  denned  by 
law.  And  section  thirty-three  hundred  and  thirty-nine  of  the 
Revised  Statutes  is  hereby  amended  accordingly :  Provided,  That 
a  discount  of  seven  and  one-half  per  centum  6hall  be  allowed 
upon  all  sales  by  collectors  to  brewers  of  the  stamps  provided  for 
the  payment  of  said  tax:  Provided  further,  That  the  additional 
tax  imposed  in  this  section  on  all  fermented  liquors  stored  in 
warehouse  to  which  a  stamp  had  been  affixed  shall  be  assessed 
and  collected  in  the  manner  now  provided  by  law  for  the  col- 
lection of  taxes  not  paid  by  stamps.     *     *     * 

Sec  51.  That  this  act  shall  take  effect  on  the  day  next  suc- 
ceeding the  date  of  its  passage,  except  as  otherwise  specially 
provided  for. 

[Act  of  March  2,  1901  (31  Stat.,  938).] 

Sec  1.  That  section  one  of  the  act  entitled  "An  act  to  provide 
ways  and  means  to  meet  war  expenditures,  and  for  other  pur- 
poses, "  approved  June  thirteenth,  eighteen  hundred  and  ninety- 
eight,  is  hereby  amended  so  as  to  read  as  follows: 

'  'That  there  shall  be  paid,  in  lieu  of  the  tax  of  one  dollar  now 
imposed  by  law,  a  tax  of  one  dollar  and  sixty  cents  on  all  beer, 
lager  beer,  ale,  porter,  and  other  similar  fermented  liquors, 
brewed  or  manufactured  and  sold,  or  stored  in  warehouse,  or 
removed  for  consumption  or  sale,  within  the  United  States,  by 
whatever  name  such  liquors  may  be  called,  for  every  barrel  con- 
taining not  more  than  thirty-one  gallons;  and  at  a  like  rate  for 
any  other  quantity  or  for  the  fractional  parts  of  a  barrel  authorized 
and  defined  by  law.  And  section  thirty-three  hundred  and 
thirty-nine  of  the  Revised  Statutes  is  hereby  amended  accord- 
ingly: Provided,  That  in  lieu  of  or  in  addition  to  the  present 
requirements  of  law  in  that  respect,  all  stamps  used  for  denoting 
the  tax  upon  fermented  liquors  or  other  taxes  may,  in  the  discre- 
tion of  the  Commissioner  of  Internal  Revenue,  be  canceled  by 
perforations  to  be  made  in  such  manner  and  form  as  the  Commis- 
sioner may  by  regulations  prescribe."    *    *    * 

Sec  15.  That  the  provisions  of  this  act  shall  take  effect  on  and 
after  the  first  day  of  July,  nineteen  hundred  and  one,  except 
where  otherwise  expressly  provided. 

[Act  of  April  12,  1902  (32  Stat..  96).] 

Sec  1.  That  section  one  of  the  act  entitled  "An  act  to  provide 
ways  and  means  to  meet  war  expenditures,  and  for  other  pur- 
poses," approved  June  thirteenth,  eighteen  hundred  and  ninety- 
eight,  as  amended  by  the  act  of  March  second,  nineteen  hundred 
and  one,  entitled  "An  act  to  amend  an  act  entitled  'An  act  to 
provide  ways  and  means  to  meet  war  expenditures,  and  for  other 
purposes,'  approved  June  thirteenth,  eighteen  hundred  and 
ninety-eight,  and  to  reduce  taxation  thereunder,"  be,  and  is 
hereby,  further  amended  so  as  to  read  as  follows: 

Section  1.  That  there  shall  be  paid  on  all  beer,  lager  beer,  ale, 
porter,  or  other  similar  fermented  liquor,  brewed  or  manufactured 
and  sold,  or  stored  in  warehouse,  or  removed  for  consumption  or 
sale,  within  the  United  States,  by  whatever  name  such  liquors 
may  be  called,  in  lieu  of  the  tax  now  imposed  by  law,  a  tax  of 
one  dollar  for  every  barrel  containing  not  more  than  thirty-one 

Eallons;  and  at  a  like  rate  for  any  other  quantity  or  for  any 
'actional  part  of  a  barrel,  as  authorized  and  defined  by  section 
thirty-three  hundred  and  thirty-nine  of  the  Revised  Statutes  of 
the  United  States:  Provided,  That  in  lieu  of  or  in  addition  to  the 
present  requirements  of  law  in  that  respect  all  stamps  used  for 
denoting  the  tax  upon  fermented  liquors  or  other  taxes  may,  in 
the  discretion  of  the  Commissioner  of  Internal  Revenue,  be  can- 
celed by  perforations  to  be  made  in  such  manner  and  form  as  the 
Commissioner  may,  by  regulations,  prescribe." 

Sec  11.  That  this  act,  except  as  otherwise  specially  provided 
for  in  the  preceding  section,  shall  take  effect  July- first,  nineteen 
hundred  and  two. 


248  FERMENTED  LlQtTORS. 

Acts  imposing  tax  on  fermented  liquors  and  rates  of  tax. 

Per  barrel. 
From  September,  1862,  to  March  3,  1863  (act  July  1,  1862).  $1. 00 
From  March  3,  1863,  to  March  31,  1864  (act  March  3,  1863).       .  60 

From  April  1,  1864,  to  June  13,  1898 1.  00 

From  June  14,  1898,  to  June  30,  1901 2.  00 

From  July  1,  1901,  to  June  30,  1902 1.  60 

From  July  1,  1902 1. 00 

The  act  of  March  3,  1863,  provided  that  the  tax  on  fermented 
liquors  should  be  60  cents  per  barrel  from  the  date  of  the  passage 
of  that  act  to  April  1,  1864.  Hence  the  tax  of  60  cents  per  barrel 
having  expired  by  limitation  April  1,  1864,  the  tax  of  $1  per  bar- 
rel under  act  of  July  1,  1862,  was  again  revived,  which  rate  was 
increased  to  $2  under  act  of  June  13,  1898. 

The  act  of  July  13,  1866  (14  Stat.,  98),  changed  the  mode  of 
assessing  and  collecting  the  tax  on  fermented  liquors,  and  made 
the  tax  on  them  after  September  1,  1866,  payable  by  stamps. 

Hop  beer.     (T.  D.  20233,  1898.) 

Weiss  beer  taxable.     (Special  No.  153;  29  Int.  Rev.  Rec,  313.) 

Imported  malt  liquors.     (Sec.  11,  act  of  Mar.  1,  1879,  p.  227.) 

The  manufacturer  of  a  drink  called  "Maltina,"  similar  to 
beer,  lager  beer,  ale,  and  porter,  made  in  part  from  one  of  those 
liquors  and  in  part  from  another  substance,  is  liable  as  a  brewer. 
(Davis  v.  Daugherty,  105  Fed.  Rep.,  769.) 

A  liquor  made  from  barley  malt,  fermented  by  means  of  a 
wine  yeast,  is  a  fermented  malt  liquor,  for  the  manufacture  of 
which  for  sale  the  special  tax  of  a  brewer  is  required  to  be  paid, 
and  on  which  tax  is  imposed,  notwithstanding  the  fact  that  by 
the  use  of  a  wine  yeast  instead  of  a  beer  yeast  it  has  the  appear- 
ance and  taste  of  wine.     (T.  D.  19025,  1898.) 

Cxaiion  defined.  [Sec.  3339a.]  Section  21,  act  of  March  1,  1879  (20 
Stat.,  327).  That  the  word  "gallon,"  wherever  used  in  the 
internal-revenue  law,  relating  to  beer,  lager-beer,  ale,  porter, 
and  other  similar  fermented  liquors,  shall  be  held  and  taken 
to  mean  a  wine-gallon,  the  liquid  measure  containing  two 
hundred  and  thirty-one  cubic  inches. 

The  standard  gallon  of  the  United  States  contains  231  cubic 
inches  or  8.3389  pounds  avoirdupois  of  distilled  water  at  its  max- 
imum density  and  with  the  barometer  at  30  inches.  (Webster's 
Dictionary.) 

The  old  beer  gallon  of  282  cubic  inches  was  recognized  as  the 
standard  for  domestic  malt  liquors  before  the  act  of  March  1, 
1879.  That  act  was  passed  to  make  the  gallon  conform  to  the 
standard  in  the  customs  service  and  to  that  recognized  by  the 
mercantile  community.  (16  Op.  Atty.  Gen.,  361;  Nichols  v. 
Beard,  29  Int.  Rev.  Rec,  46.) 

Evading  tax,  Sec.  3340  [as  amended  by  sec.  10,  act  of  Afar.  1,  1879 
cSriojJ8  fa°ise  vln-  (20  Stat.,  327).]  Every  owner,  agent,  or  superintendent 
tries,  etc.;  pen-  0f  any  brewery,  vessels,  or  utensils  used  in  making  fer- 
mented liquors,  who  evades,  or  attempts  to  evade,  the 
payment  of  the  tax  thereon,  or  fraudulently  neglects  or 
refuses  to  make  true  and  exact  entry  and  report  of  the 
same  in  the  manner  required  by  law,  or  to  do,  or  cause  to 
be  done,  any  of  the  things  by  law  required  to  be  done  by 
him  *  *  *,  or  who  intentionally  makes  false  entry 
in  said  book  or  in  said  statement,  or  knowingly  allows  or 
procures  the  same  to  be  done,  shall  forfeit,  for  every  such 
offense,  all  the  liquors  made  by  him  or  for  him,  and  all  the 
vessels,  utensils,  and  apparatus  used  in  making  the  same, 


FERMENTED   LIQUORS.  249 

and  be  liable  to  a  penalty  of  not  less  than  five  hundred  nor 
more  than  one  thousand  dollars,  to  be  recovered  with 
costs  of  suit,  and  shall  be  deemed  guilty  of  a  misdemeanor, 
and  be  imprisoned  for  a  term  not  exceeding  one  year. 

And   every  brewer  who  neglects   to   keep   books,    or ke£e£fltyboo ts 
refuses  to  furnish  the  account  and  duplicate  thereof  as  etc. 
provided  by  law,  or  refuses  to  permit  the  proper  officer 
to  examine  the  books  in  the  manner  provided,  shall,  for 
every  such  refusal  or  neglect,  forfeit  and  pay  the  sum  of 
three  hundred  dollars. 

The  words  "as  aforesaid8'  were  stricken  out  in  the  seventh 
line  by  section  10,  act  March  1,  1879  (20  Stat.,  327). 

Brewer  liable  for  neglecting  to  keep  books,  although  there  was 
no  criminal  intent.  (United  States  v.  Miller,  16  Int.  Rev.  Rec, 
25;  United  States  v.  Foster,  19  ibid.,  5;  25  Fed.  Cas.,  1173;  2 
Biss.,  453;  United  States  v.  Bellingstein,  Fed.  Cas.  No.  14566;  16 
Int.  Rev.  Rec,  92;  Archbold's  Crim.  Prac,  p.  395.) 

Evading  or  attempting  to  evade  the  tax  forfeits  all  the  liquors 
made,  and  all  the  vessels,  utensils,  and  apparatus  used  in  making 
the  same.  (United  States  v.  Brewery  Utensils,  13  Int.  Rev. 
Rec,  95;  Fed.  Cas.  No.  14641.) 

Sec.  3341  [as  amended  by  sec.  9,  act  of  July  24,  1897  (^^^fe'/and 
Stat.,  151).}  The  Commissioner  of  Internal  Revenue  sow. 
shall  cause  to  be  prepared,  for  the  payment  of  such  tax, 
suitable  stamps  denoting  the  amount  of  tax  required  to 
be  paid  on  the  hogsheads,  barrels,  and  halves,  thirds, 
quarters,  sixths,  and  eighths  of  a  barrel  of  such  fermented 
liquors  (and  shall  also  cause  to  be  prepared  suitable  per- 
mits for  the  purpose  hereinafter  mentioned),  and  shall 
furnish  the  same  to  the  collectors  of  internal  revenue,  who 
shall  each  be  required  to  keep  on  hand  at  all  times  a 
sufficient  supply  of  permits  and  a  supply  of  stamps  equal 
in  amount  to  two  months'  sales  thereof,  if  there  be  any 
brewery  or  brewery  warehouse  in  his  district;  and  such 
stamps  shall  be  sold,  and  permits  granted  and  delivered  Permits. 
by  such  collectors,  only  to  the  brewers  of  their  district, 
respectively. 

Such  collectors  shall  keep  an  account  of  the  number  of 
permits  delivered  and  of  the  number  and  value  of  the 
stamps  sold  by  them  to  each  brewer. 

As  to  stamps,  see  section  3446,  amended,  p.  355. 

Relative  to  sale  to  sheriff  of  stamps  for  tax  on  beer  levied  upon 
or  attached  by  him.  (Letter  to  Collector  Johnson,  Feb.  15,  1894; 
40  Int.  Rev.  Rec,  53.) 

Under  the  act  of  July  24,  1897,  a  brewer  was  required  to  pay 
the  full  face  value  of  the  stamps  purchased,  without  deduction 
of  the  7^  per  cent  discount  previously  allowed.  The  act  of  June 
13,  1898,  increasing  the  tax  to  $2  per  barrel,  restored  the  right 
to  the  discount.  The  right  to  the  discount  was  repealed  by  the 
act  of  March  2,  1901  (31  Stat.,  938).  (Nunn  v.  Wm.  Gerst  Brew- 
ing Co.  (1900),  99  Fed.  Rep.,  939;  Nassau  Brewing  Co.  v.  Moore, 
collector  (1899),  97  Fed.  Rep.,  206.) 

A  collector's  duty,  as  prescribed  by  section  3341,  Revised 
Statutes,  is  to  keep  on  hand  stamps  equal  in  amount  to  two 
months'  sale  thereof.  The  law  does  not  permit  transactions  for 
future  delivery.  The  agency  is  limited  to  the  stock  on  hand. 
(The  American  Brewing  Co.  v.  United  States  (1898),  33  Ct.  Cls., 
348;  T.  D.  19248,  1898.) 


250  FERMENTED   LIQUORS. 

stamps,  how  gEC>  3342  [as  amended  by  act  of  Mar.  3,  1875  (18  Stat., 
and calcded.xed' 484).]  That  every  brewer  shall  obtain,  from  the  collector 
of  the  district  in  which  his  brewery  or  brewery-warehouse 
is  situated,  and  not  otherwise  unless  such  collector  shall 
fail  to  furnish  the  same  upon  application  to  him,  the 
proper  stamps,  and  shall  affix,  upon  the  spigot-hole  in 
the  head  of  every  hogshead,  barrel,  keg,  or  other  recep- 
tacle in  which  any  fermented  liquor  is  contained,  when 
sold  or  removed  from  such  brewery  or  warehouse,  (except 
in  case  of  removal  under  permit,  as  hereinafter  provided,) 
a  stamp  denoting  the  amount  of  the  tax  required  upon 
such  fermented  liquor,  which  stamp  shall  be  destroyed 
by  driving  through  the  same  the  faucet  through  which 
the  liquor  is  to  be  withdrawn,  or  an  air-faucet  of  equal 
size,  at  the  time  the  vessel  is  tapped,  in  case  the  vessel  is 
tapped  through  the  other  spigot-hole,  (of  which  there 
shall  be  but  two,  one  in  the  head  and  one  in  the  side,) 
and  shall,  also,  at  the  time  of  affixing  such  stamp,  cancel 
the  same  by  writing  or  imprinting  thereon  the  name  of  the 
person,  firm,  or  corporation  by  whom  such  liquor  was 
made,  or  the  initial  letters  thereof,  and  the  date  when 
canceled. 
p  e  n  a  1 1  y  f  o  r  Every  brewer  who  refuses  or  neglects  to  affix  and  cancel 
the  stamps  required  by  law  in  the  manner  aforesaid,  or 
who  affixes  a  false  or  fraudulent  stamp  thereto,  or  know- 
ingly permits  the  same  to  be  done,  shall  pay  a  penalty  of 
one  hundred  dollars  for  each  barrel  or  package  on  which 
such  omission  or  fraud  occurs,  and  be  imprisoned  not 
more  than  one  year. 

Beer  stamps  are  not  articles  of  merchandise.  They  are  merely 
evidence  of  payment  of  tax.  (American  Brewing  Co.  v.  United 
States,  33  Ct.  Cls.,  349;  Nunn  v.  Wm.  Gerst  Brewing  Co.,  99 
Fed.  Rep.,  939;  Nassau  Brewing  Co.  v.  Moore,  collector,  97  Fed. 
Rep.,  206.) 

Stamps  must  be  affixed  upon  a  spigot  hole  in  the  head  of  the 
package.  (United  States  v.  McKechnie,  15  Int.  Rev.  Rec,  8; 
Fed.  Cas.  No.  15682.) 

The  proviso  in  the  first  section  of  the  act  of  March  2,  1901, 
p.  247,  reads  as  follows: 

'  "Provided,  That  in  lieu  of  or  in  addition  to  the  present  require- 
ments of  law  in  that  respect,  all  stamps  used  for  denoting  the  tax 
upon  fermented  liquors  or  other  taxes  may,  in  the  discretion  of 
trie  Commissioner  of  Internal  Revenue,  be  canceled  by  perfo- 
rations to  be  made  in  such  manner  and  form  as  the  Commissioner 
may  by  regulations  prescribe." 

In  the  exercise  of  the  authority  thus  conferred  it  was  pre- 
scribed that  on  and  after  September  1,  1901,  and  until  otherwise 
ordered,  all  stamps  used  for  denoting  the  tax  upon  fermented 
liquors  shall  be  canceled  by  perforations.     (Reg.  No.  6,  Rev., 

1  Q      \ 

As  to  spigot  holes.  (32  Int.  Rev.  Rec,  317;  see  T.  D. 
743,  T.  D.  751,  and  T.  D.  762.) 

Where  the  law  prescribes  as  punishment  for  an  offense  both  a 
money  penalty  and  imprisonment,  it  is  not  true  that  the  penalty 
can  only  be  enforced  by  indictment,  The  Government  can 
maintain  an  action  of  debt  for  the  money  penalty.  (United 
States  v.  Foster,  2  Bias.,  453;  19  Int.  Rev.  Rec,  5.) 

It  is  sufficient  as  a  general  rule  to  charge  an  otfense  in  the 
language  of  the  statute.     (United  States  v.  Schiiuer,  5  Bias.,  195.) 


FERMENTED   LIQUORS.  251 

Sec.  3343.  Whenever  any  brewer,  cartman,  agent  f or  ing*Ui£rg'  buying 
transportation,  or  other  person,  sells,  removes,  receives,  fermented  liquor 
or  purchases,  or  in  any  way  aids  in  the  sale,  removal,  outT^amVVo'r 
receipt,  or  purchase,  of  any  fermented  liquor  contained  wj^  sump^or 
in  any  hogshead,  barrel,  keg,  or  other  vessel  from  any  stamp;  penalty. 
brewery  or  brewery  warehouse,  upon  which  the  stamp, 
or  permit,  in  case  of  removal,  required  by  law,  has  not 
been  affixed,  or  on  which  a  false  or  fraudulent  stamp,  or 
permit,  in  case  of  removal,  is  affixed,  with  knowledge 
that  it  is  such,  or  on  which  a  stamp,  or  permit,  in  case  of 
removal,  once  canceled,  is  used  a  second  time,  he  shall 
be  fined  one  hundred   dollars  and  imprisoned  for  not 
more  than  one  year. 

Sec.    3344.  Whenever    any    retail    dealer,    or    other    Drawing  fer- 

...  •  i      •       ji  -,ii  i       a  £         mented   liquor 

person,  withdraws  or  aids  in  the  withdrawal  ot  any  rer-from    package 
mented  liquor  from  any  hogshead,  barrel,  keg,  or  other o?th°wMi  stafX' 
vessel  containing  the  same,  without  destroying  or  defac-  stamp,  ^ot  witt- 
ing the  stamp  affixed  thereon,  or  withdraws  or  aids  in  stamp;  penalty. 
the  withdrawal  of  any  fermented  liquor  from  any  hogs- 
head, barrel,  keg,  or  other  vessel,  upon  which  the  proper 
stamp  has  not  been  affixed  or  on  which  a  false  or  fraudu- 
lent stamp   is   affixed,   he  shall  be  fined  one  hundred 
dollars  and  imprisoned  not  more  than  one  year. 

See  section  3455,  page  360,  as  to  selling,  receiving,  etc.,  empty 
stamped  packages. 

Sec.  3345.  Any  brewer  may  remove  or  transport,  orst^™ov^tlJ00J 
cause  to  be  removed  or  transported,  from  his  brewery  or  stamps 
other  place  of  manufacture  to  a  depot,  warehouse,  or 
other  place  used  exclusively  for  storage  or  sale  in  bulk,  and 
occupied  by  him,  in  another  part  of  the  same  collection- 
district,  or  in  another  collection-district,  but  to  no  other 
place,  malt  liquor  of  his  own  manufacture,  known  as 
lager-beer,  in  quantities  of  not  less  than  six  barrels  in  one 
vessel,  and  malt  liquor  of  his  own  manufacture,  known 
as  ale  or  porter,  or  any  other  malt  liquor  of  his  own 
manufacture  not  heretofore  mentioned,  in  quantities  not 
less  than  fifty  barrels  at  a  time,  without  affixing  the 
proper  stamps  on  said  vessels  of  lager-beer,  ale,  porter, 
or  other  malt  liquor,  at  the  brewery  or  place  of  manu- 
facture, under  a  permit,  which  shall  be  granted,  upon  Permlt- 
application,  by  the  collector  of  the  district  in  which  said 
malt  liquor  is  manufactured,  and  under  such  regulations  as 
the  Commissioner  of  Internal  Revenue  may  prescribe;  and 
thereafter  the  manufacturer  of  said  malt  liquor  shall  stamp 
the  same,  when  it  leaves  such  depot  or  warehouse,  in  the 
same  manner  and  under  the  same  penalties  and  liabilities 
as  when  stamped  at  the  brewery  as  herein  provided. 

And  the  collector  of  the  district  in  which  such  depot  or 
warehouse  is  situated  shall  furnish  the  manufacturer 
with  the  stamps  for  stamping  the  same,  as  if  the  said 
malt  liquor  had  been  manufactured  in  his  district.  And 
said  permit  must  be  affixed  to  every  such  vessel  or  cask 
so  removed,  and  canceled  or  destroyed  in  such  manner  as 


252  FERMENTED   LIQUORS. 

the  Commissioner  of  Internal  Revenue  may  prescribe, 
and  under  the  same  penalties  and  liabilities  as  provided 
herein  as  to  stamps. 
orMaushfgSellf!ufe     Sec-  3346  ias  amended  by  sec.  5,  act  of  Mar.  1,  1879  (20 
stamps,  permits, Stat.,  327)].     Every  person  who  makes,  sells,  or  uses  any 
false  or  counterfeit  stamp  or  permit,  or  die  for  printing  or 
making  stamps  or  permits,  which  is  in  imitation  of  or  pur- 
ports to  be  a  lawful  stamp,  permit,  or  die  of  the  kind 
before  mentioned  in  this  chapter,  or  who  procures    the 
uskfgms^mprtsame  t°  be  done,  and  every  person  who  shall  remove,  or 
selling  or  having  cause  to  be  removed,  from  any  cask  or  package  of  fer- 
So^eT^sta^nps- mented    liquors,   any  stamp  denoting    the  tax  thereon, 
penalty.  with  intent  to  re-use  such  stamp,  or  who,  with  intent  to 

defraud  the  revenue,  knowingly  uses,  or  permits  to  be 
used,  any  stamp  removed  from  another  cask  or  package, 
or  receives,  buys,  sells,  gives  away,  or  has  in  his  posses- 
sion, any  stamp  so  removed,  or  makes  any  fraudulent  use 
of  any  stamp  for  fermented  liquors,  shall  be  fined  not  less 
than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  and  imprisoned  not  less  than  six  months  nor  more 
than  three  years. 

All  officers  are  instructed  that  canceled  beer  stamps,  or  stamps 
that  have  been  once  used,  found  in  the  hands  of  a  brewer  or 
other  person,  should  be  seized,  marked  for  identification,  and 
deposited  with  the  collector  for  use  in  a  prosecution  to  be 
instituted  under  section  3346,  R.  S.,  as  amended.  (Cir.  No. 
407,  Aug.  25,  1893.) 

sour  malt  Hq-  Sec.  3347.  When  fermented  liquor  has  become  sour  or 
pecuieiar0pack- damaged,  so  as  to  be  incapable  of  use  as  such,  brewers 
ages  without may  seij  the  saine  for  manufacturing  purposes,  and  may 
remove  the  same  to  places  where  it  may  be  used  for  such 
purposes,  in  casks,  or  other  vessels,  unlike  those  ordinarily 
used  for  fermented  liquors,  containing  respectively  not 
less  than  one  barrel  each,  and  having  the  nature  of  their 
contents  marked  upon  them,  without  affixing  thereon  the 
permit,  stamp  or  stamps  required. 

Section  3347,  Revised  Statutes,  providing  for  the  sale  by  a 
brewer  of  sour  beer  in  peculiar  packages  without  a  stamp  does 
not  confer  the  privilege  of  removing  a  stamp  for  re-use  in  the 
case  of  beer  soured  or  spoiled  after  being  stamped.  A  stamp 
once  applied  to  a  package  can  never  legally  be  removed  and  applied 
to  another. 

No  refund  allowed  of  money  paid  for  stamps  on  packages  of 
beer  which  have  soured  after  removal  from  the  brewery.  (T.  D. 
799.) 

Brewers  selling  Sec.  3348.  Every  brewer  who  sells  fermented  liquor  at 
eryetatoat;abfrfeix retail  at  the  brewery  or  other  place  where  the  same  is 
accent and  keep  mac^e>  shall  affix  and  cancel  the  proper  stamps  upon  the 
hogsheads,  barrels,  kegs,  or  other  vessels  m  which  the 
same  is  contained,  and  shall  keep  an  account  of  the  quan- 
tity so  sold  by  him,  and  of  the  number  and  size  of  the 
hogsheads,  barrels,  kegs,  or  other  vessels  in  which  the 
same  has  been  contained,  and  shall  make  a  report  thereof, 
verified  by  oath,  monthly  to  the  collector. 


uor: 
in 


FERMENTED   LIQUORS.  253 

Sec.  3349.  Eveiy  brewer  shall,  by  branding,  mark  or,  Nameofmanu- 
cause  to  be  marked  upon  every  hogshead,  barrel,  keg,  or  be  marked'  on 
other  vessel  containing  the  fermented  liquor  made  by  pa c foflemo^g 
him,  before  it  is  sold  or  removed  from  the  brewery  ormajks>etc- 
brewery  warehouse,  or  other  place  of  manufacture"^  the 
name  of  the  person,  firm,  or  corporation  by  whom  such 
liquor  was  manufactured,  and  the  place  of  manufacture; 
and  every  person  other  than  the  owner  thereof,  or  his 
agent  authorized  so  to  do,  who  intentionally  removes  or 
defaces  such  marks  therefrom,  shall  be  liable  to  a  penalty 
of  fifty  dollars  for  each  cask  or  other  vessel  from  which 
the  mark  is  so  removed  or  defaced: 

m  Provided,  That  when  a  brewer  purchases  f ermented ctSSTfenb enV 
liquor  finished  and  ready  for  sale  from  another  brewer,  ined   liquor   from 
order  to  supply  the  customers  of  such  purchaser,  the  pur-  another  brewer- 
chaser  may,  upon  written  notice  to  the  collector  of  his 
intention  so  to  do,  and  under  such  regulations  as  the  Com- 
missioner of  Internal  Revenue  may  prescribe,  furnish  his 
own  vessels,  branded  with  his  name  and  the  place  where 
his  brewery  is  situated,  to  be  filled  with  the  fermented 
liquor  so  purchased,  and  to  be  so  removed;  the  proper 
stamps  to  be  affixed  and  canceled,  as  aforesaid,  by  the 
manufacturer  before  removal. 

_  See  section  3244,  subdivision  fifth,  page  139,  for  liability  to  spe- 
cial tax  in  such  cases. 

Shipping  fermented  liquors  under  other  than  the  name  as 
known  to  the  trade.     (Sec.  3449,  R.  S.) 

Sec.  3350.  Whenever,  in  the  opinion  of  the  collector  of    PerKmit  t0  carrT 

, .  .     ,  .    .     r  on     business    at 

any  district,  it  becomes  requisite  or  proper,  by  reason  or  another  place  on 
an  accident  to  any  brewery  therein,  by  fire  or  flood,  or  of  S^  °f  acci" 
such  brewery  undergoing  repairs,  or  of  other  circum- 
stances, that  the  brewer  carrying  on  the  same  shall  be  per- 
mitted to  conduct  his  business  wholly  or  in  part  at  some 
other  place  within  such  district  or  an  adjoining  district 
for  a  temporary  period,  it  shall  be  lawful  for  such  collector, 
under  such  regulations  and  subject  to  such  limitation  of 
time  as  the  Commissioner  of  Internal  Revenue  may  pre- 
scribe, to  issue  a  permit  to  such  brewer,  authorizing  him 
to  conduct  his  business  wholly  or  in  part,  according  to  the 
circumstances,  at  such  other  place,  for  a  period  to  be 
stated  in  such  permit ;  and  such  brewer  shall  not  be  re- 
quired to  pay  another  special  tax  for  the  purpose. 

Sec.  3351.  When  malt  liquor  or  tun  liquor,  in  the  first    upfermen  t ed 

,  £  c  .  ,       ^  „        t-         >  .  worts  sold  to  oth- 

stages  ot  fermentation,  known  as  unrermented  worts,  of  er  brewers;  how 

whatever  kind,  is  sold  by  one  brewer  to  another  for  the  pur- tax  sha11  be  paid" 

pose  of  producing  fermentation  or  enlivening  old  or  stale 

ale,  porter,  lager-beer,  or  other  fermented  liquors,  it  shall 

not  be  liable  to  a  tax  to  be  paid  by  the  seller  thereof,  but 

the  tax  on  the  same  shall  be  paid  by  the  purchaser  thereof, 

when  the  same,  having  been  mixed  with  the  old  or  stale  beer, 

is  sold  by  him  as  provided  by  law,  and  such  sale  or  transfer 

shall  be  subject  to  such  restrictions  and  regulations  as 

the  Commissioner  of  Internal  Revenue  may  prescribe. 


254  FERMENTED  LIQUORS. 

femented0  He  uor     ^ec.  3352.  The  ownership  or  possession  by  any  person 
after  removaiof  any  fermented  liquor  after  its  sale  or  removal  from  the 
wTenWtal110not  brewery  or  warehouse,  or  other  place  where  it  was  made, 
paidcause of  for-Up0n  which  the  tax  required  has  not  been  paid,  shall  ren- 
der such  liquor  liable  to  seizure  wherever  found,  and  to 
forfeiture,  removal  under  said  permits  excepted. 
Absence  of     And  the  absence  of  the  proper  stamps  from  any  hogs- 
i.ofice^ancTe^-head,  barrel,  keg,  or  other  vessel  containing  fermented 
dence.  liquor,  after  its  sale  or  removal  from  the  brewery  where  it 

was  made,  or  warehouse  as  aforesaid,  shall  be  notice  to  all 
persons  that  the  tax  has  not  been  paid  thereon,  and  shall 
be  prhna-facie  evidence  of  the  non-payment  thereof. 
Removal  or  de-     Sec.  3353.  Every  person,  other  than  the  purchaser  or 
3tami»by  others  owner  of  any  fermented  liquor,  or  person  acting  on  his 
1  enait^e  owners;  behalf,  or  as  his  agent,  who  intentionally  removes  or 
defaces  the  stamp  or  permit  affixed  upon  the  hogshead, 
barrel,  keg,  or  other  vessel,  in  which  the  same  is  contained, 
shall  be  liable  to  a  fine  of  fifty  dollars  for  each  such  vessel 
from  which  the  stamp  or  permit  is  so  removed  or  defaced, 
and  to  render  compensation  to  such  purchaser  or  owner 
for  all  damages  sustained  by  him  therefrom. 
withdrawing     Sec.  3354.  [As  amended  by  act  of  June  18,  1890   {26 
ItampedTacT Stat. ,  169).]     Every  person  who  withdraws  any  fermented 

af^\ouHn"lilonucraor  ^rom  anJ  hogshead,  barrel,  keg,  or  other  vessel 
brewery' prem- upon  which  the  proper  stamp  has  not  been  affixed,  for 
lses'  the  purpose  of  bottling  the  same,  or  who  carries  on,  or 

attempts  to  carry  on,  the  business  of  bottling  fermented 
liquor  in  any  brewery  or  other  place  in  which  fermented 
liquor  is  made,  or  upon  any  premises  having  communica- 
tion with  such  brewery,  or  any  warehouse,  shall  be  liable 
Penalty.         to  a  fine  of  five  hundred  dollars,  and  the  property  used  in 

such  bottling  or  business  shall  be  liable  to  forfeiture: 
Removal  of  fer-     Provided,  however,  That  this  section  shall  not  be  construed 
b^u^Uest>ab^to  prevent  the  withdrawal  and  transfer  of  fermented  liquors 

to^™rncond/u?tipe/rom  aniJ  °f^e  va^s  ^n  anV  brewery,  by  way  of  a  pipe  line  or 
other  conduit,  to  another  building  or  place,  for  the  sole  pur- 
pose of  bottling  the  same;  such  pipe  line  or  conduit  to  be  con- 
structed and  operated  in  such  manner,  and  with  such  cisterns, 
vats,  tanks,  valves,  cocks,  faucets,  and  gauges,  or  other  uten- 
sils or  apparatus,  either  on  the  premises  of  the  brewery  or  the 
bottling  house,  and  with  such  changes  of  or  additions  thereto, 
and  such  locks,  seals,  or  other  fastenings,  and  under  such 
rules  and  regulations  as  shall  be  from  time  to  time  prescribed 
by  the  Commissioner  of  Internal  Revenue,  subject  to  the 
approval  of  the  Secretary  of  the  Treasury,  and  all  locks  and 
seals  pre  scribed'  shall  be  provided  by  the  Commissioner  of 
Internal  Revenue,  at  the  expense  of  the  United  States: 

Provided  further ,  That  the  tax  imposed  in  section  thirty- 
three  hundred  and  thirty-nine  of  the  Revised  Statutes  of  the 
{{iiited  States  shall  be  paid  on  all  fermented  liquor  removed 
from  a  bran  ry  to  a  bottling  house  by  means  of  a  pipe  or  con- 
canreiiai  \ou  duit,  at  the  time  of  such  removal,  by  the  cancellation  and 

oTstamps*8  a  defacement,  by  the  collector  of  the  district,  or  his  deputy,  in 
the  presence  of  the  brewer,  of  the  number  of  stamps  denoting 


FERMENTED   LIQUORS.  255 

the  tax  on  the  fermented  liquor  thus  removed.  The  stamps 
thus  cancelled  and  defaced  shall  be  disposed  of  and  accounted 
for  in  the  manner  directed  by  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treasury. 
And  any  violation  of  the  rules  and  regulations  hereafter 
prescribed  by  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  in  pursuance  of 
these  provisions,  shall  be  subject  to  the  penalties  above  pro-  Penalties  and 
vidcd  by  this  section.  Every  owner,  agent,  or  superintendent forfeitures- 
of  any  brewery  or  bottling  house  who  removes,  or  connives  at 
the  removal  of,  any  -fermented  liquor  through  a  pipe  line  or 
conduit,  without  payment  of  the  tax  thereon,  or  who  attempts 
in  any  manner  to  defraud  the  revenue  as  above,  shall  forfeit 
all  the  liquors  made  by  and  for  him,  and  all  the  vessels, 
utensils,  and  apparatus  used  in  making  the  same. 

Storing  of  bottled  beer  and  empty  bottles  is  part  of  the  business 
of  bottling  and  not  allowed  on  brewery  premises. 

Beer  intended  for  bottling,  except  when  removed  by  pipe  line, 
must  be  drawn  into  stamped  packages  and  removed  from  the 
brewery,  and  the  bottling  premises  must  be  so  separated  from 
the  brewery  that  the  beer  must  be  carried  upon  a  street  or  road 
which  is  a  public  highway,  actually  and  commonly  used  as  a 
thoroughfare  by  the  public,  in  its  passage  from  the  brewery  to 
the  bottling  establishment.  (Int.  Rev.  Reg.,  No.  6,  revised, 
under  "Bottling.") 

Concerning  the  transfer  of  fermented  liquors  from  a  brewery 
by  way  of  pipe  line  or  conduit  for  the  sole  purpose  of  bottling 
the  same.     (Regulations,  No.  6,  revised,  Oct.  8,  1909.) 

EXPORTATION    OF    FERMENTED    LIQUORS. 

[Act  of  June  IS,  1890  (26  Stat,  162).]     That  from  and  feS^fiiq0- 
after  the  first  day  of  January,   eighteen  hundred  anduors. 
ninety-one,  fermented  liquor  may  be  removed  from  the 
place  of  manufacture,  or  storage,  for  export  to  a  foreign 
country,  without  payment  of  tax,  in  such  packages  and 
under  such  regulations,    and   upon  the  giving  of  such 
notices,  entries,  bonds,  and  other  security,  as  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  may  from  time  to  time  pre- 
scribe;  and  no  drawback  of  tax  shall  be  allowed  on  fer-    No  drawback. 
mented  liquor  exported  on  and  after  the  first  day  of 
January,     eighteen     hundred     and     ninety-one,     unless 
entered  for  exportation  prior  to  such  date. 

This  operates  as  a  repeal,  on  and  after  January  1,  1891,  of 
section  3441,  Revised  Statutes,  as  amended.  (Regulations  No. 
29,  T.  D.  540.) 


Chapter  Six. 
TOBACCO  AND  SNUFF. 


Sec. 

69.  Act  of  August  28,  1894.     Manufac- 
turer of  tobacco  defined. 
27.  Act  of  October  1,  1890,  amended. 
Restrictions    upon    farmers    re- 
moved. 
3355  (amended).     Manufacturer's     state- 
ment. 
Bond  and  certificate;  penalties. 
3356.  Sign  to  be  put  up  by  manufacturer; 

penalty  for  omission. 
3357  (amended).  Record  of  manufactur- 
ers to  be  kept  by  collector. 

3358.  Annual     inventory.       Books     and 

monthly  abstracts.     Taxes  on  ci- 
gars, cigarettes,  and  size  of  pack- 
ages of  tobacco;  penalty. 
3244  (amended).    Subsection  6.     Dealers 
in  leaf  tobacco  defined. 
26.  Act  of  Oct.  1,  1890.     Registry. 

3359.  Dealers  in  leaf  tobacco  to  render 

statement    of     sales    when     de- 
manded.    Examination  of  books. 

3360  (amended).  Books  of  dealer  in  leaf 
tobacco;  penalty. 

3361.  Repealed  by  section  69,  act  August 
28,  1894. 
35.  Act  Aug.  5,  1909.     Retail  dealers  in 
leaf  tobacco;  definition,  etc. 

3362  (amended).  Tobacco  and  snuff,  how 
put  up. 

3363.  Tobacco  and  snuff  to  be  sold  only  in 
prescribed  packages;  penalty. 
Exception. 

3364  (amended).  Caution  label;  penalty. 

3365.  Obsolete. 

3366.  Purchasing  tobacco  not  branded  or 

stamped;  penalty. 

3367.  Obsolete. 

3368  (as  amended).  Tax  on  tobacco  and 

snuff. 
3369.  Stamps,  how  prepared,  furnished, 
and  sold. 
Stamping  forfeited   tobacco  or  to- 
bacco Bold  under  distraint. 
Destruction    of    unsalable    tobacco 
and  cigars. 


Sec. 

3370.  Tobacco  manufactured  by  one  per- 
son for  another  or  on  shares; 
fraud  in  such  cases;  penalty. 

3371  (amended).  Assessment  of  tax  on 
tobacco,  snuff,  and  cigars  re- 
moved without  stamps. 

3372.  Removing  unlawfully,  selling  with- 

out stamps,  or  payment  of  tax,  or 
giving  bond,  making  false  en- 
tries; forfeiture. 

3373.  Absence  of  stamp  evidence  of  non- 

payment; forfeiture. 

3374.  Removing,  except  in  proper  pack- 

ages or  without  stamp,  selling 
unlawfully,  etc.;  penalty. 

3375.  Affixing  false  stamps  or  stamps  be- 

fore used;  penalty. 

3376.  Stamps  on  empty  packages  to  be 

destroyed;    buying,    selling,    or 
using  the  same;  penalty. 
3377  (amended).  Imported    tobacco   and 
snuff;  also  scraps,  cuttings,  and 
clippings. 
Obsolete. 
Obsolete. 
3380.  Obsolete. 

3244  (amended).     Subsection    11.     Ped- 
dlers of  tobacco,  defined. 
Peddlers  of  tobacco;  statement  and 

bond. 
Peddlers  of  tobacco  traveling  with 
wagon. 

3383  (amended).  Peddler  to  obtain  and 

exhibit  certificate,  etc. 

3384  (amended).  Peddling    tobacco    un- 

lawfully; penalty. 

3385  (amended).  Exportation    of    manu- 

factured  tobacco,    etc.;   penalty 
for  relanding,  etc. 
Transportation    bond,    etc.;    ex- 
port bond,  etc. 
Regulations  authorized. 
Reimported  tobacco. 

3386  (amended).  Drawback  on  exported 

tobacco,  snuff,  and  cigars. 
[3386«.]  Fraudulent  claims  for  drawback. 


3378. 
3379. 


3381. 
3382. 


[3385a. 

[33856.1 
[3385c] 


[Act  of  Aug.  28,  1894  {28  Stat,  509).]  Every  of  "gjjgJf'S 


Sec.  69 
person  whose  business  it  is  to  manufacture  tobacco  or  fined, 
snufr  for  himself,  or  who  employs  others  to  manufacture 
tobacco  or  snuff,  whet  her  such  manufacture  be  by  cutting, 
pressing,  grinding,  crushing,  or  rubbing  of  any  raw  or 

256 


TOBACCO  AND   SNUFF.  257 

leaf-tobacco,  or  otherwise  preparing  raw  or  leaf  tobacco, 
or  manufactured  or  partially  manufactured  tobacco  or 
snuff,  or  the  putting  up  for  use  or  consumption  of  scraps, 
waste,  clippings,  stems,  or  deposits  of  tobacco  resulting 
from  any  process  of  handling  tobacco,  or  by  the  working 
or  preparation  of  leaf  tobacco,  tobacco  stems,  scraps, 
clippings,  or  waste,  by  sifting,  twisting,  screening,  or  any 
other  process,  shall  be  regarded  as  a  manufacturer  of 
tobacco. 

Every  person  shall  also  be  regarded  as  a  manufacturer    Retail   leaf 
of  tobacco  whose  business  it  is  to  sell  leaf  tobacco  in  gafded  as  mam> 
quantities  less  than  a  hogshead,  case,  or  bale;  or  who facturers- 
sells  directly  to  consumers,  or  to  persons  other  than  duly 
registered  dealers  in  leaf  tobacco,  or  duly  registered  manu- 
facturers of  tobacco,  snuff  or  cigars,  or  to  persons  who 
purchase  in  packages  for  export;  and  all  tobacco  so  sold  by 
such  persons  shall  be  regarded  as  manufactured  tobacco, 
and  such  manufactured  tobacco  shall  be  put  up  and  pre- 
pared by  such  manufacturer  in  such  packages  only  as  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  shall  prescribe:  Provided, 
That  farmers  and  growers  of  tobacco  who  sell  leaf  tobacco    Farmers  and 
of  their  own  growth  and  raising  shall  not  be  regarded  as^ 
manufacturers  of  tobacco;  and  so  much  of  section  three 
thousand  two  hundred  and  forty-four  of  the  Revised  Stat- 
utes of  the  United  States,  and  acts  amendatory  thereof, 
as  are  in  conflict  with  this  Act,  are  hereby  repealed: 

*T*  *T*  *T*  *f* 

That  section  thirty-three  hundred  and  sixty-one  of  the 
Revised  Statutes  is  hereby  repealed. 

See  also  section  35,  Act  of  August  5,  1909,  page  261. 
Sec.  27.  [Art  of  Oct.  1,  1890  (26  Stat,  618),  as  amended    Reliction* 
by  sec.  69,  act  of  Aug.  28,  1894  (28  Stat,  509).}     That  all  XTed 
provisions  of  the  statutes  imposing  restrictions  of  any 
kind  whatsoever  upon  farmers  and  growers  of  tobacco  in 
regard  to  the  sale  of  their  leaf  tobacco,  and  the  keeping  of 
books,  and  the  registration  and  report  of  their  sales  of 
leaf  tobacco,  or  imposing  any  tax  on  account  of  such  sales 
are  hereby  repealed. 

See  also  section  35,  Act  of  August  5,  1909,  page  261. 

Sec.  3355,  [as  amended  by  sec.  14,  act  of  Mar.  1,  1879 BbJSSS°bSSf 
(20  Stat.,  327). \     Every  person,  before  commencing,  or,  and  certificates.  ' 
if  he  has   already  commenced,   before  continuing,   the 
manufacture  of  tobacco  or  snuff,  shall  furnish,  without 
previous  demand  therefor,   to  the  collector  of  the  dis- 
trict where  the  manufacture  is  to  be  carried  on,  a  state-    statement 

•11*  i*ii  i  i  •  i»        i       omi  oo. 

ment  in  duplicate,  subscribed  under  oath,  setting  forth 
the  place,  and  if  in  a  city,  the  street  and  number  of  the 
street,  where  the  manufacture  is  to  be  carried  on;  the 
number  of  cutting-machines,  presses,  snuff-mills,  hand- 
mills,  or  other  machines;  the  name,  kind,  and  quality  of 
the  article  manufactured  or  proposed  to  be  manufac- 

72170°— 11 17 


258  TOBACCO   AND   SNUFF. 

tured ;  and  when  the  same  is  manufactured  by  him  as 
agent  for  any  other  person,  or  to  be  sold  and  delivered  to 
any  other  person  under  a  special  contract,  the  name  and 
residence  and  business  or  occupation  of  the  person  for 
whom  the  said  article  is  to  be  manufactured,  or  to  whom 

BondForm4o.it  is  to  be  delivered;  and  he  shall  give  a  bond,  to  be  ap- 
proved by  the  collector  of  the  district,  in  the  sum  of  not 
less  than  two  thousand  nor  more  than  twenty  thousand 
dollars,  to  be  fixed  by  the  collector  of  the  district,  accord- 
ing to  the  quantum  of  business  proposed  to  be  done  by  the 
manufacturer,  with  right  of  appeal  by  the  manufacturer  to 
the  Commissioner  of  Internal  Revenue  in  respect  to  the 
amount  of  said  bond,  conditioned  that  he  shall  not  engage 
in  any  attempt,  by  himself  or  by  collusion  with  others,  to 
defraud  the  government  of  any  tax  on  his  manufactures; 
that  he  shall  render  truly  and  completely  all  the  returns 
statements,  and  inventories  prescribed  by  law  or  regula- 
tions; that  whenever  he  adds  to  the  number  of  cutting- 
machines,  presses,  snuff-mills,  hand-mills,  or  other  mills  or 
machines  as  aforesaid,  he  shall  immediately  give  notice 
thereof  to  the  collector  of  the  district;  that  he  shall  stamp, 
in  accordance  with  law,  all  tobacco  and  snuff  manu- 
tured  by  him  before  he  removes  any  part  thereof  from  the 
place  of  manufacture;  that  he  shall  not  knowingly  sell, 
purchase,  expose,  or  receive  for  sale,  any  manufactured 
tobacco  or  snuff  which  has  not  been  stamped  as  required 
by  law;  and  that  he  shall  comply  with  all  the  requirements 
of  law  relating  to  the  manufacture  of  tobacco  or  snuff. 
Additional  sureties  may  be  required  by  the  collector  from 
time  to  time. 

certificate  And  every  manufacturer  shall  obtain  a  certificate  from 
the  collector  of  the  district,  who  is  hereby  directed  to  issue 
the  same,  setting  forth  the  kind  and  number  of  machines, 
presses,  snuff  mills,  hand  mills,  or  other  mills  and  ma- 
chines as  aforesaid;  which  certificate  shall  be  posted  in  a 
conspicuous  place  within  the  manufactory. 

Penalties.  ^n(j  eveIy  tobacco-manufacturer  who  neglects  or  re- 

fuses to  obtain  such  certificate,  or  to  keep  the  same  posted 
as  hereinbefore  provided,  shall  be  fined  not  less  than  one 
hundred  dollars  nor  more  than  five  hundred  dollars.  And 
ever}r  person  who  manufactures  tobacco  or  snuff  of  any 
description  without  first  giving  bond,  as  herein  required, 
shall  be  fined  not  less  than  one  thousand  dollars  nor  more 
than  five  thousand  dollars,  and  imprisoned  for  not  less 
than  one  nor  more  than  five  years. 

The  liability  of  the  sureties  on  the  bond  of  a  manufacturer  of 
tobacco,  given  in  pursuance  of  this  section,  does  not  cease  upon 
the  expiration  of  his  "  license"  as  such  manufacturer. 

Revenue  officers  are  not  required  to  give  notice  of  the  expira- 
tion ofa  manufacturer's  "license."  It  is  a  matter  within  his  knowl- 
edge, and  of  which  he  must  take  notice  at  his  peril.  (United 
States  r.  Truesdell,  2  Bond,  78;  5  Int.  Rev.  Rec,  102.) 

The  manufacture  and  sale  al  retail  of  cigars  and  tobacco  can 
not  be  lawfully  carried  on  at  the  same  time  and  at  the  same 
place.     (16  Op".  Atty.  Gen.,  89;  24  Int.  Rev.  Rec,  227.) 


TOBACCO  AND   SNUFF.  259 

Use  of  abbreviation  "Co.  "  for  "Company"  does  not  invalidate 
a  bond,  and  a  bond  so  signed  is  legally  binding  upon  principals 
and  sureties.     (T.  D.  1660.) 

Sec.  3356.  Every  manufacturer  of  tobacco  and  snuff  upSif^  l;abneug 
shall  place  and  keep  on  the  side  or  end  of  the  building turer;  penalty 
wherein  his  business  is  carried  on,  so  that  it  can  be  dis-  ° 
tinctly  seen,  a  sign,  with  letters  thereon  not  less  than 
three  inches  in  length,   painted  in  oil-colors  or  gilded, 
giving  his  full  name  and  business.     And  every  person 
who  neglects  to  comply  with  the  requirements  of  this 
section  shall  be  fined  not  less  than  one  hundred  dollars 
or  more  than  five  hundred  dollars. 

Sign  must  be  in  English  language  (Regulations  No.  8,  p.  36.) 

Sec.  3357  [as  amended  by  sec.  33,  act  of  Oct.  1,  1890^  (26  ufSgsof0f  ^ 
Stat.,  620)].   Every  collector  shall  keep  a  record,  in  abacco  and  snuff 
book  or  books  provided  for  that  purpose,  to  be  open  to  the  lector kept  y  c° 
inspection  of  only  the  proper  officers  of  internal  revenue, 
including  deputy  collectors  and  internal-revenue  agents, 
of  the  name  and  residence  of  every  person  engaged  in  the 
manufacture  of  tobacco  or  snuff  in  his  district,  the  place 
where  such  manufacture  is  carried  on,  and  the  number  of 
the  manufactory;  and  he  shall  enter  in  said  record,  under    Record  13. 
the  name  of  each  manufacturer,  a  copy  of  every  inventory 
required  by  law  to  be  made  by  such  manufacturer,  and 
an  abstract  of  his  monthly  returns;  and  he  shall  cause 
the  several  manufactories  of  tobacco  or  snuff  in  his  dis- 
trict to  be  numbered  consecutively,  which  numbers  shall 
not  be  thereafter  changed,  except  for  reasons  satisfac- 
tory to  himself  and  approved  by  the  Commissioner  of 
Internal  Revenue. 

Sec.  3358.  Every  person  now  or  hereafter  engaged  in  to£™"maaufa£ 
the  manufacture  of  tobacco  or  snuff  shall  make  and  turer. 
deliver  to  the  collector  of  the  district  a  true  inventory, 
in  such  form  as  may  be  prescribed  by  the  Commissioner  Form70a- 
of  Internal  Revenue,  and  verified  by  his  own  oath,  of  the 
quantity  of  each  of  the  different  kinds  of  tobacco,  snuff- 
flour,  snuff,  stems,  scraps,  clippings,  waste,  tin  foil, 
licorice,  sugar,  gum,  and  other  materials  held  or  owned 
by  him  on  the  first  day  of  January  of  each  year,  or  at  the 
time  of  commencing  and  at  the  time  of  concluding  busi- 
ness, if  before  or  after  the  first  of  January;  setting  forth 
what  portions  of  said  goods  and  materials,  and  what 
kinds  were  manufactured  and  produced  by  him,  and 
what  was  purchased  from  others.  The  collector  shall 
make  personal  examination  of  the  stock  sufficient  to 
satisfy  himself  as  to  the  correctness  of  the  inventory, 
and  shall  verify  the  fact  of  such  examination  by  oath,  to 
be  indorsed  on  or  affixed  to  the  inventory. 

And  every  such  person  shall  keep  a  book  or  books,  the  N(f °7°ks-    Form 
forms  of  which  shall  be  prescribed  by  the  Commissioner 
of  Internal  Revenue,  and  enter  therein  daily  an  accurate 
account  of  all  the  articles  aforesaid  purchased  by  him,  the 
quantity  of  tobacco,  snuff,  and  snuff-flour,  stems,  scraps, 


260  TOBACCO   AND   SNUFF. 

clippings,  waste,  tin-foil,  licorice,  sugar,  gum,  and  other 
material,  of  whatever  description,  manufactured,  sold, 
consumed,  or  removed  for  consumption  or  sale,  or  re- 
moved from  the  place  of  manufacture  in  bond,  and  to 
what  district  removed;  also  the  number  of  net  pounds  of 
lumps  of  plug  tobacco  made  in  the  lump  room,  and  the 
number  of  packages  and  pounds  thereof  produced  in  the 
press-room  each  day.  And  he  shall,  on  or  before  the 
tenth  day  of  each  month,  furnish  to  the  collector  a  true 
stracti^^or'm'and  complete  abstract  from  such  book,  verifying  the 
No.  62.  same  by  his  oath,  of  all  such  purchases,  sales,  and  remov- 

als made  during  the  month  next  preceding. 
Penalty.  And  whenever  any  such  person  refuses  or  willfully  neg- 

lects to  deliver  the  inventory,  or  keep  the  account,  or 
furnish  the  abstract  aforesaid,  he  shall  be  fined  not  less 
than  five  hundred  dollars  nor  more  than  five  thousand 
dollars,  and  imprisoned  not  less  than  six  months  nor 
more  than  three  years. 

Case  involving  the  forfeiture  of  the  tobacco  factory  of  C.  H. 
Lilienthal,  before  Judge  Blatchford  and  a  jury.  (U.  S.  district 
court,  southern  district  of  New  York;  13  Int.  Rev.  Rec,  158.) 

Returns  of  manufacturers  of  tobacco  and  cigars:  A  manufac- 
turer may  employ,  under  power  of  attorney,  a  person  to  prepare 
his  returns,  inventories,  etc.,  but  the  returns  and  inventories 
must  be  verified  by  the  oath  of  the  manufacturer.  (T.  D.  1039, 
T.  D.  1047.) 

Annual  inventories.     (Cir.  709,  rev.;  T.  D.  1557.) 

healeri  fin  Heaf     Sec.  3244,  sixth   subsection  of  as  amended  by  sec.  14, 

tobacco  denned.    ^    ^    ^^     ^    ^^    ^Q    Stat}  327) ,    and    ad   of  Mar.    3, 

1883  (22  Stat,  488).  *  *  *  Every  person  shall  be 
regarded  as  a  dealer  in  leaf  tobacco  whose  business  it  is, 
for  himself  or  on  commission,  to  sell,  or  offer  for  sale, 
or  consign  for  sale  on  commission,  leaf  tobacco. 
Restriction  of  Dealers  in  leaf  tobacco  shall  sell  only  to  other  dealers 
in  leaf  tobacco,  and  to  manufacturers  of  tobacco,  snuff,  or  cigars,  and  to 
such  persons  as  are  known  to  be  purchasers  of  leaf 
tobacco  for  export: 

Provided,  It  shall  be  lawful  for  any  licensed  manufac- 
turer of  cigars  to  purchase  leaf  tobacco  of  any  licensed 
dealer  or  other  licensed  manufacturer  in  quantities  less 
than  the  original  package,  for  use  in  his  own  manufactory 
exclusively. 

Special-tax  provision  repealed  by  section  26,  act  of  October  1, 
1890. 

Special  tax  again  imposed  by  act  of  June  13,  1898.  (p.  140. 
Compilation  of  1900.) 

Again  repealed  by  act  of  Apr.  12,  1902,  sec.  7  (32  Stat.,  97). 

M^uirement  Sec.  26  [act  of  Oct.  1, 1890  (26  Stat,  567),  (Supp.  E.  S., 
vol. 1,862)].  *  *  *  Every  such  dealer  in  leaf  tobacco, 
*  *  *  manufacturer  and  peddler  shall,  however,  reg- 
ister with  the  collector  of  the  district  his  name,  or  style, 
place  of  residence,  trade,  or  business,  and  the  place  where 
such  trade  or  business  is  to  bo  carried  on,  the  same  as 
though  the  tax  had  not  been  repealed,  and  a  failure  to 


TOBACCO  AND   SNUFF.  261 

register  as  herein  required  shall  subject  such  person  to  a 
penalty  of  fifty  dollars. 

Penalty  for  failure  to  register  (T.  D.  854,  T.  D.  1612). 
Sec.  3359.  It  shall  be  the  duty  of  any  dealer  in  leaf  to-    Dealers  in  leaf 

b,       •    i  j   •  e.  •  i,  tobacco  to  render 

acco,  or  in  any  material  used  in  manufacturing  tobacco  statement  of 

or  snuff,  on  demand  of  any  officer  of  internal  revenue,  to  minded?1611  de" 
render  a  true  and  complete  statement,  under  oath,  of  the 
quantity  and  amount  of  such  leaf-tobacco  or  materials 
sold  or  delivered  to  any  person  named  in  such  demand, 
and  in  case  of  refusal  or  neglect  to  render  such  statement, 
or  if  there  is  cause  to  believe  such  statement  to  be  incor- 
rect or  fraudulent,  the  collector  shall  make  an  examina- 
tion of  persons,  books,  and  papers,  in  the  manner  provided  perSon?inabo0oksf 
in  relation  to  frauds  and  evasions.  and  papers. 

Sections  3163a,  page  75,  and  3173,  page  86. 

Sec.  3360  [as  amended  by  sec.  14,  Act  of  Mar.  1,  1879 d£^Z*££eo 
{20  Stat.,  3£?y]  Every  dealer  in  leaf-tobacco  shall  make 
daily  entries  in  two  books  kept  for  that  purpose,  one  Record  No.  59. 
book  to  be  furnished  by  the  government,  under  such  regu- 
lations as  the  Commissioner  of  Internal  Revenue  shall 
prescribe,  of  the  number  of  hogsheads,  cases,  and  pounds 
of  leaf-tobacco  purchased  or  received  by  him  on  assign- 
ment, consignment,  transfer,  or  otherwise,  and  of  whom 
purchased  or  received,  and  the  number  of  hogsheads, 
cases,  or  pounds  sold  by  him,  with  the  name  and  resi- 
dence, in  each  instance,  of  the  person  to  whom  sold,  and, 
if  shipped,  to  whom  shipped,  and  to  what  district ;  one  of 
these  books  shall  be  kept  at  his  place  of  business,  and 
shall  be  open  at  all  hours  to  the  inspection  of  any  internal- 
revenue  officer  or  agent,  and  the  other  shall,  at  the  end  of 
each  and  every  year,  and  upon  the  discontinuance  of 
business  of  any  leaf  dealer  during  any  year,  be  handed 
over  to  the  collector  of  his  district  for  the  use  of  the 
government.  And  every  dealer  in  leaf-tobacco  who  Penalty. 
willfully  neglects  or  refuses  to  keep  the  books  herein 
provided  for,  and  in  the  manner  which  shall  be  prescribed 
by  the  Commissioner  of  Internal  Revenue,  or  to  transfer 
to  the  collector  of  Ms  district,  as  herein  provided,  the 
duplicate  copy  containing  his  daily  transactions,  as  afore- 
said, shall  be  fined  not  less  than  one  hundred  dollars  nor 
more  than  five  thousand  dollars,  and  imprisoned  not  more 
than  one  year. 

[Sec.  3361]  repealed.     See  page  257. 

Sec.  35.  [Act  of  Aug.  5, 1909,  36  Stat.,  110.]  That  un-  J^Xtt 
stemmed  leaf  tobacco  in  the  natural  leaf,  in  the  hand,  and 
not  manufactured  or  altered  in  any  manner,  raised  and 
grown  in  the  United  States,  shall  not  be  subject  to  any 
internal-revenue  tax  or  charge  of  any  kind  whatsoever,  and 
it  shall  be  lawful  for  any  person  to  buy  and  sell  such  un- 
stemmed  tobacco  in  the  leaf,  in  the  hand,  without  pay- 
ment of  tax  of  any  kind:  Provided,  That  any  person, 
other  than  the  farmer  or  producer  of  leaf  tobacco,  who 


262  TOBACCO  AND   SNUFF. 

sells  leaf  tobacco  to  manufacturers  of  tobacco,  snuff  or 
cigars  shall  be  deemed  and  considered  a  dealer  in  leaf 
tobacco,  and  become  subject  to  all  the  provisions  of 
section  thirty-two  hundred  and  forty-four,  as  amended 
by  section  fourteen,  Act  of  March  first,  eighteen  hundred 
and  seventy-nine,  and  also  as  amended  by  the  Act  of 
March  third,  eighteen  hundred  and  eighty-three,  and, 
further,  shall  be  subject  to  all  the  provisions  of  section 
thirty-three  hundred  and  sixty,  as  amended  by  section 
fourteen,  Act  of  March  first,  eighteen  hundred  and 
seventy-nine,  and  of  sections  thirty-three  hundred  and 
fifty-nine  and  thirty-three  hundred  and  ninety-one, 
United  States  Revised  Statutes. 
i3ettaKdealer,<in     Every  person  shall  be  regarded  as  a  retail  dealer  in  leaf 

leaf   tobacco    de-  ^  *i  i        •  • .,    •  hip.ii 

fined.  tobacco  whose  business  it  is  to  sell  leal  tobacco  m  quan- 

tities of  less  than  an  original  hogshead,  case  or  bale;  or 
who  shall  sell  directly  to  consumers  or  to  persons  other 
than  dealers  in  leaf  tobacco  or  to  manufacturers  of  to- 
bacco, snuff  or  cigars,  or  to  persons  who  purchase  in 
original  packages  for  export. 
Registry.  Every  such  retail  dealer  in  leaf  tobacco  shall  register 

with  the  collector  of  the  district  his  name  or  style,  place 
of  residence,  trade  or  business,  and  the  place  where  such 
trade  or  business  is  to  be  carried  on;  and  a  failure  to 
register  as  herein  required  shall  subject  such  person  to  a 
penalty  of  fifty  dollars;  and  every  retail  dealer  in  leaf 
tobacco  shall  also  keep  a  book  and  enter  therein  daily  his 
purchases  of  leaf  tobacco  and  his  sales,  where  such  sales 
amount  to  two  pounds  or  more  to  one  person  in  one  day. 
Such  record  shall  be  kept  written  up  to  date  and  shall  be 
in  such  form  and  contain  such  entries  as  shall  be  prescribed" 
by  the  Commissioner  of  Internal  Revenue,  with  the  ap- 
Books.  proval  of  the  Secretary  of  the  Treasury,  and  such  books 

shall  be  open  at  all  times  for  the  inspection  of  any  internal- 
revenue  officer  or  agent. 

seiT°  whom  may  Any  person  who  has  duly  qualified  as  a  retail  dealer  in 
leaf  tobacco  may  sell  natural  leaf  tobacco  grown  or  raised 
in  the  United  States  in  its  condition  as  cured  on  the  farm, 
in  the  hand,  and  not  manufactured  in  any  way,  except 
to  manufacturers  of  tobacco,  snuff  or  cigars,  without  the 
payment  of  any  tax  on  such  leaf  tobacco  whatsoever, 
and  so  much  of  section  sixty-nine,  tariff  Act  of  August 
twenty-seventh,  eighteen  hundred  and  ninety-four,  which 
took  effect  the  following  day,  and  section  thirty-two 
hundred  and  forty-four,  United  States  Revised  Statutes, 
or  any  other  existing  law,  as  is  inconsistent  with  the  pro- 
visions of  this  Act,  is  hereby  repealed. 
Record  No.  145.  And  it  shall  be  the  duty  of  every  retail  dealer  in  leaf 
tobacco,  as  herein  described,  under  regulations  to  be 
prescribed  by  the  Commissioner  of  Internal  Revenue  with 
the  approval  of  the  Secretary  of  the  Treasury,  to  furnish 
on  demand  to  any  internal-revenue  officer  or  other 
authorized  agent  of  the  Treasury  Department  a  true  and 
correct  statement,  verified  by  his  oath  or  affirmation,  of 


TOBACCO  AND   SNUFF.  263 

all  his  sales  of  leaf  tobacco  in  quantities  of  ten  pounds  or 

more  to  any  one  person  in  any  one  day,  with  the  name 

and  residence  in  each  instance  of  the  person  to  whom 

sold,  and  any  such  retail  dealer  in  leaf  tobacco  who  shall 

willfully  refuse  to  furnish  such  information  or  keep  the 

book  as  required  herein,  or  who  shall  knowingly  make  any 

false  statements  or  false  entries  in  such  book  as  to  any 

of  the  facts  aforesaid,  shall  be  guilty  of  a  misdemeanor, 

and  on  conviction  shall  be  liable  to  a  fine  of  fifty  dollars    Penalty. 

for  each  offense:  And  provided  further,  That  nothing  in    Sales  °y  farm- 

this  Act  shall  be  construed  as  imposing  any  restrictions 

whatsoever  upon  the  farmers  or  growers  of  leaf  tobacco 

in  regard  to  the  sales  of  their  leaf  tobacco. 

Sec.  34.  [Act  of  Aug.  5,1909  (36  Stat,  110).]  That  the 
provisions  of  sections  thirty,  thirty-one,  thirty-two,  and 
thirty-three  of  this  Act  shall  not  take  effect  until  July  first, 
nineteen  hundred  and  ten. 

Relates  to  sections  3362,  3368,  3392,  and  3394,  amended  by 
Act  of  August  5,  1909. 

Sec.  3362  [as  amended  by  sec.  30  of  the  Act  of  Aug.  5, 
1909  (36  Stat.,  108).}  All  manufactured  tobacco  shall  be 
put  up  and  prepared  by  the  manufacturer  for  sale,  or 
removal  for  sale  or  consumption,  in  packages  of  the  fol- 
lowing description  and  in  no  other  manner: 

All  smoking  tobacco,  snuff,  fine-cut  chewing  tobacco,    Packages  desig- 
all  cut  and  granulated  tobacco,  all  shorts,  the  refuse  of 
fine-cut  chewing,  which  has  passed  through  a  riddle  of 
thirty-six  meshes  to  the  square  inch,  and  all  refuse  scraps, 
clippings,   cuttings,   and  sweepings  of  tobacco,  and  all 
other  kinds  of  tobacco  not  otherwise  provided  for,  in 
packages  containing  one-half  ounce,  three-fourths  of  an 
ounce,  and  further  packages  with  a  difference  between 
each  package  and  the  one  next  smaller  of  one-fourth  of 
an  ounce  up  to  and  including  four  ounces,  and  packages 
of  six  ounces,  seven  ounces,  eight  ounces,  ten  ounces, 
twelve  ounces,  fourteen  ounces,  and  sixteen  ounces:  Pro-    Proviso. 
vided,  That  snuff  may,  at  the  option  of  the  manufacturer,    snua. 
be  put  up  in  bladders  and  in  jars  containing  not  exceeding 
twenty  pounds. 

All  cavendish,  plug,  and  twist  tobacco,  in  wooden  P&ck-    ^Mdm  pack- 
ages not  exceeding  two  hundred  pounds  net  weight. 

And  every  such  wooden  package  shall  have  printed  or    Marking. 
marked  thereon  the  manufacturer's  name  and  place  of 
manufacture,  the  registered  number  of  the  manufactory, 
and  the  gross  weight,  the  tare,  and  the  net  weight  of  the 
tobacco  in  each  package:  Provided,  That  these  limita-    Ixponfcxcept- 
tions  and  descriptions  of  packages  shall  not  apply  to  ed. 
tobacco  and  snuff  transported  in  bond  for  exportation 
and  actually  exported:  And  provided  further,  That  perique  Jg^ggfjgJJ; 
tobacco,  snuff  flour,  fine-cut  shorts,  the  refuse  of  fine-cut  of  tax. 
chewing  tobacco,  refuse  scraps,  clippings,  cuttings,  and 
sweepings  of  tobacco,  may  be  sold  in  bulk  as  material, 
and  without  the  payment  of  tax,  by  one  manufacturer 


264  TOBACCO  AND   SNUFF. 

directly  to  another  manufacturer,  or  for  export,  under 
such  restrictions,  rules,  and  regulations  as  the  Commis- 
sioner of  Internal  Revenue  may  prescribe:  And  provided 
p^kag^sition  o!further,  That  wood,  metal,  paper,  or  other  materials  may 
be  used  separately  or  in  combination  for  packing  tobacco, 
snuff,  and  cigars,  under  such  regulations  as  the  Com- 
missioner of  Internal  Revenue  may  establish. 

Congress  niay  prescribe  any  rule  or  regulation  which  is  not 
in  itself  unreasonable,  relative  to  the  manufacture  and  handling 
of  tobacco  or  cigars.  (Felsenheld  v.  IT.  S.  (1902),  186  U.  S., 
126,  affirming  103  Fed.  Rep.,  453.) 

Tobacco  and  snuff  must  be  put  up  by  the  manufacturer  in 
prescribed  packages.  (U.  S.  v.  288  Packages  of  Merry  World 
Tobacco,  103  Fed.  Rep.,  453.) 

Section  3362  was  amended  by  section  14,  act  of  March  1, 
1879  (20  Stat.,  327),  and  act  of  January  9,  1883  (22  Stat.,  401), 
section  3,  act  of  June  13,  1898  (30  Stat.,  449),  act  of  July  1, 1902, 
and  section  30,  act  of  August  5,  1909  (36  Stat.,  108). 

Sec.  3363  [as  amended  by  sec.  31,  act  of  Oct.  1,  1890  (26 
Stat.,  567).]  No  manufactured  tobacco  shall  be  sold  or 
offered  for  sale  unless  put  up  in  packages  and  stamped  as 
prescribed  in  this  chapter,  except  at  retail  by  retail  dealers 
from  the  packages  authorized  by  section  thirty-three  hundred 
Tobacco  and  and  sixty-two  of  the  Revised  Statutes;  and  every  person 

snuff  to  be  sold      i  i]  re  £  l  ix  l  •     j      j» 

only  in  pre-  who  sells  or  offers  tor  sale  any  snuff  or  any  kind  or  manu- 
agest!epenaity-ekx-^actllre^  tobacco  not  so  put  up  in  packages  and  stamped 
ception.  shall  be  fined  not  less  than  five  hundred  dollars  nor  more 

than  five  thousand  dollars,  and  imprisoned  not  less  than 

six  months  nor  more  than  two  years. 

U.  S.  v.  Jenkinson,  15  Fed.  Rep.,  903. 
caution  label.  gEC-  3364  [as  amemiea>  0y  sec.  5,  act  of  Mar.  3,  1883  (22 
Stat.,  4<5<§).]  Every  manufacturer  of  tobacco  or  snuff 
shall,  in  addition  to  all  other  requirements  of  this  title 
relating  to  tobacco,  print  on  each  package,  or  securely 
affix,  by  pasting,  on  each  package  containing  tobacco  or 
snuff  manufactured  by  or  for  him,  a  label,  on  which  shall 
be  printed  *  *  *  the  number  of  the  manufactory, 
the  district  and  State  in  which  it  is  situated,  and  these 
words: 

Notice. — The  manufacturer  of  this  tobacco  has  complied  with 
all  requirements  of  law.  Every  person  is  cautioned,  under  the 
penalties  of  law,  not  to  use  this  package  for  tobacco  again. 

Penalty.  Every  manufacturer  of  tobacco  who  neglects  to  print  on 

or  affix  such  label  to  any  package  containing  tobacco  made 
by  or  for  him,  or  sold  or  offered  for  sale  by  or  for  him,  and 
every  person  who  removes  any  such  label  so  affixed  from 
any  such  package,  shall  be  fined  fifty  dollars  for  each  pack- 
age in  respect  to  which  such  offense  shall  be  committed. 

[Sec.  3365.]  Obsolete. 

baTcTnofbfand-     Sec.  3366.  Every  person  who  purchases,  or  receives  for 

ed  or  stain I:  sale,  any  manufactured  tobacco  or  snuff  which  has  not 

been  branded  or  stamped  according  to  law,  shall  be  liable 
to  a  penalty  of  fifty  dollars  for  each  offense. 


TOBACCO    AND    SNUFF. 


265 


Sec.  3367.   (Buying  tobacco  from  a  manufacturer  who 
has  not  paid  special  tax.) 

Obsolete,  as  manufacturers  are  not  now  required  to  pay 
special  tax. 

Sec.  3368  [as  amended  by  sec.  31,  act  of  Aug.  5,  1909    jj^jf8/*  ?"•  d 
(36  Stat.,  109).]  Upon  tobacco  and  snuff  manufactured  tobacco  larnd 
and  sold,  or  removed  for  consumption  or  use,  there  shall snufl" 
be  levied  and  collected  the  following  taxes: 

On  snuff,  manufactured  of  tobacco  or  any  substitute  snufl. 
for  tobacco,  ground,  dry,  damp,  pickled,  scented,  or  other- 
wise, of  all  descriptions,  when  prepared  for  use,  a  tax  of 
eight  cents  per  pound.  And  snuff  flour,  when  sold,  or 
removed  for  use  or  consumption,  shall  be  taxed  as  snuff, 
and  shall  be  put  up  in  packages  and  stamped  in  the  same 
manner  as  snuff. 

On  all  chewing  and  smoking  tobacco,  fine-cut,  caven-  chewing  and 
dish,  plug,  or  twist,  cut  or  granulated,  of  every  descrip-SI 
tion;  on  tobacco  twisted  by  hand  or  reduced  into  a  con- 
dition to  be  consumed,  or  in  anv  manner  other  than  the 
ordinary  mode  of  drying  and  curing,  prepared  for  sale  or 
consumption,  even  if  prepared  without  the  use  of  any 
machine  or  instrument,  and  without  being  pressed  or 
sweetened;  and  on  all  fine-cut  shorts  and  refuse  scraps, 
clippings,  cuttings,  and  sweepings  of  tobacco,  a  tax  of 
eight  cents  per  pound. 

This  is  an  excise  tax,  and  Congress  has  the  power  to  increase 
it,  at  least  while  the  property  is  held  for  sale,  and  before  it 
has  passed  into  the  hands  of  the  consumer.  (Patton  v.  Brady, 
184  U.  S.,  608;  additional  tax  of  3  cents  per  pound  on  tobacco 
in  the  hands  of  dealers  imposed  by  sec.  3,  act  of  June  13,  1898). 

Section  3368  was  amended  by  section  30,  act  of  October  1, 
1890  (26  Stat.,  619);  section  3,  act  of  June  13,  1898  (30  Stat., 
448);  section  3,  act  of  March  2,  1901  (31  Stat.,  939);  section  3, 
act  of  April  12, 1902,  and  section  31,  act  of  August  5,  1909  (36  Stat., 
109),  in  effect  July  1,  1910. 


Date  of  acts  imposing  tax  on  tobacco  and  rates  of  tax. 


Tobacco. 


Smoking,  made  exclusively  of  stems. .. 
Do 

Smoking,  prepared  with  all  the  stems 
in 

Cavendish,  plug,  twist,  fine-cut,  valued 
at  not  over  30  cents  per  pound 

Cavendish,  plug,  twist,  fine-cut,  valued 
at  over  30  cents  per  pound 

Cavendish,  plug,  twist,  fine-cut,  and 
manufactured  tobacco  of  all  descrip- 
tions, except  smoking  tobacco 

Snufl 

Smoking,  made  exclusively  of  stems. . . 

Smoking,  prepared  with  all  the  stems 
in,  and  fine-cut  shorts 

Cavendish,  plug,  twist,  etc.,  and  fine- 
cut  chewing 

Snuff. 

Twisted  by  hand 


Rate 
of  tax 

per 
pound. 


Cents. 
2 
5 

5 

10 

15 


15 
20 
15 

25 

35 
35 
30 


Acts  impos- 
ing tax. 


July     1,1862 
Mar.     3, 1863 

July     1,1862 

do 

do 


Mar.  3, 1863 
July  1, 1862 
June  30,1864 

do 


do 

do 

Mar.     3,1865 


Acts  repeal- 
ing tax. 


Mar.     3, 1863 
June  30,1864 

do 

Mar.     3, 1863 

do 


June  30,1864 

do 

July    13,1866 

Mar.     3, 1865 

do 

do 

Julv    13,1866 


Length 
of  time 

rates 
were  in 

force. 


16 
22 
25 


9 

9 

16 


266 


TOBACCO  AND   SNUFF. 
Date  of  acts  imposing  tax  on  tobacco  and  rates  of  tax — Continued. 


Tobacco. 


Smoking,  of  all  kinds,  not  otherwise  pro- 
vided for 

Cavendish,  plug,  twist,  etc.,  and  fine-cut 

chewing 

Snuff 

Smoking,  not  sweetened,  stemmed,  or 

butted 

Twisted  by  hand,  etc.,  and  fine-cut 

shorts 

Smoking,     sweetened,     stemmed,     or 

butted 

Chewing 

Chewing,  etc.,  smoking, etc.,  part  of  the 

.stems  removed 

Smoking,  exclusively  of  stems,  etc 

Snuff 

All  kinds,  except  snuff,  cigars,  cheroots, 

and  cigarettes 

Do 

Do 

Do 

Smoking  and  manufactured  tobacco  and 

snuff 

Manufactured  tobacco  and  snuff 

Do 

Do 


Rate 
of  tax 

per 
pound. 


Cents. 
35 

40 
40 

15 

30 

40 
40 

32 
16 
32 

20 
24 
16 

8 

6 

12 

6 

8 


Acts  impos- 
ing tax. 


Mar.    3, 1865 


.do. 
.do. 


July   13,1866 
do 


.do. 
.do. 


July   20,1868 

do 

do 


June  6,1872 

Mar.  3,1875 

Mar.  1,1879 

Mar.  3,1883 

Oct.  1,1890 
June  13,1898 
Apr.  12,1902 
Aug.     5, 1909 


Acts  repeal- 
ing tax. 


July   13,1866 

do 

July   20,1868 


.do. 
.do. 

.do. 

.do. 


June    6, 1872 

do 

Mar.     1,1879 

Mar.  3, 1875 

Mar.  1,1879 

Mar.  3,1883 

Oct.  1,1890 

June  13,1898 
Apr.  12,1902 
Aug.    5,1909 


Length 
of  time 

rates 
were  in 

force. 


Months. 
16 

16 

40 

24 

24 

24 
24 

47 

47 

129 

32 
50 
48 
91 

90 
49 
96 


The  acts  relating  to  the  tax  on  manufactured  tobacco  and 
snuff  went  into  operation  immediately  on  their  passage,  except 
the  following:  Act  of  March  3,  1865,  took  effect  April  1,  1865; 
act  of  July  13,  1866,  took  effect  August  1,  1866;  act  of  June  6, 
1872,  took  effect  July  1,  1872;  act  of  March  1,  1879,  took  effect 
May  1,  1879;  act  of  March  3,  1883,  took  effect  May  1,  1883  (Rep. 
Com.  Int.  Rev.,  1888,  p.  136);  act  of  October  1,  1890,  took  effect 
January  1,  1891;  act  of  June  13,  1898,  took  effect  June  14,  1898; 
act  of  March  2,  1901,  which  took  effect  July  1,  1901,  allowed 
20  per  cent  discount  on  all  sales  of  tobacco  and  snuff  stamps, 
virtually  making  rate  9.6  cents;  act  of  April  12,  1902,  took 
effect  July  1, 1902;  and  act  of  August  5,  1909,  took  effect  July  1, 
1910. 

The  tax  on  manufactured  tobacco  and  snuff  first  required  to 
be  paid  by  stamps.     (Act  of  July  20,  1868.) 

Stamps  not  of  money  value  were  required  to  be  affixed  by  in- 
spectors previous  to  that  time.     (Act  of  Mar.  3,  1865.) 

The  term  "granulated  tobacco"  not  synonymous  with  "snuff." 
(Venable  v.  Richards,  105  U.  S.,  636;  28  Int.  Rev.  Rec,  162; 
affirming  1  Hughes,  326;  22  Int.  Rev.  Rec,  299.) 

Tobacco  stamped  and  removed  in  forenoon  of  March  3,  1875, 
while  the  act  of  that  date  which  increased  the  tax  to  24  cents 
per  pound  was  signed  in  the  afternoon.  The  increase  of  tax 
did  not  apply  in  that  case.  (Burgess  v.  Salmon,  97  U.  S.,  381; 
25  Int.  Rev.  Rec,  31;  affirming  1  Hughes,  356;  21  Int.  Rev. 
Rec,  333.) 

Manufactured  tobacco  shipped  in  bond  from  the  manufactory 
and  stored  in  an  export  bonded  warehouse  on  the  14th  of  June, 
1872,  was  subject  to  the  tax  of  32  cents  per  pound  prescribed 
by  the  internal-revenue  act  of  July  20,  1868.  (Jones  v.  Black- 
well,  100  U.  S.,  599;  26  Int.  Rev.  Rec,  114;  14  Op.  Atty.  Gen., 
110;  16  Int.  Rev.  Rec,  77.) 

Section  4  of  "An  act  to  repeal  war  revenue  taxation,  and  for 
other  purposes,"  approved  April  12,  1902,  provided  for  rebate  of 
tax  on  tobacco  held  by  manufacturers  or  dealers  on  which  the 


TOBACCO  AND   SNUFF.  267 

higher  rate  had  been  paid.     (Hyams  v.  United  States,  139  Fed. 
Rep.,  997;  146  ibid.,  15.) 

The  rules  and  regulations  prescribed  by  the  Commissioner  were 
authorized  and  were  not  unreasonable.  (Powell  v.  United  States 
(1905),  135  Fed.,  881.) 

Sec.  3369.  The  Commissioner  of  Internal  Revenue  stamps,  how 
shall  cause  to  be  prepared  suitable  and  special  stamps  for  ntshed*  and' sold" 
the  payment  of  the  tax  on  tobacco  and  snuff,  which  shall 
indicate  the  weight  and  class  of  the  article  on  which  pay- 
ment is  to  be  made,  and  shall  be  affixed  and  canceled  in 
the  mode  prescribed  by  the  Commissioner  of  Internal 
Revenue,  and  stamps  when  used  on  any  wooden  package 
shall  be  canceled  by  sinking  a  portion  of  the  same  into  the 
wood  with  a  steel  die,  and  also  such  export -stamps  as  are 
required  by  law.  Such  stamps  shall  be  furnished  to  the 
collectors  requiring  them,  and  each  collector  shall  keep  at 
all  times  a  supply  equal  in  amount  to  three  months'  sale 
thereof,  and  shall  sell  the  same  only  to  the  manufacturers 
of  tobacco  and  snuff  in  their  respective  districts  who  have 
given  bonds  as  required  by  law,  and  to  owners  or  con- 
signees of  tobacco  or  snuff,  upon  the  requisition  of  the 
proper  custom-house  officer  having  the  custody  of  sucji 
tobacco  or  snuff;  and  to  persons  required  by  law  to  allix 
the  same  to  tobacco  or  snuff  on  hand  on  the  first  day  of 
January,  eighteen  hundred  and  sixty-nine.  And  every 
collector  shall  keep  an  account  of  the  number,  amount,  Record  No.  98. 
and  denominate  values  of  stamps  sold  by  him  to  each 
manufacturer  or  other  person  aforesaid: 

Provided,  That  such  stamps  as  may  be  required  to  stamping  for- 
stamp  tobacco,  snuff,  or  cigars,  sold  under  distraint  bvS^ t0^™0' 
any  collector  of  internal  revenue,  or  lor  stamping  any 
tobacco,  snuff,  or  cigars  which  may  have  been  abandoned, 
condemned,  or  forfeited,  and  sold  by  order  of  court  or  of 
any  Government  officer  for  the  benefit  of  the  United 
States,  may,  under  such  rules  and  regulations  as  the 
Commissioner  of  Internal  Revenue  shall  prescribe,  be 
used  by  the  collector  making  such  sale,  or  furnished  by  a 
collector  to  a  United  States  marshal,  or  to  any  other 
Government  officer  making  such  sale  for  the  benefit  of 
the  United  States,  without  making  payment  for  said 
stamps  so  used  or  delivered;  and  any  revenue-  collector 
using  or  furnishing  stamps  in  mamier  as   aforesaid,  on 

Presenting  vouchers  satisfactory  to  the  Commissioner  of 
nternal  Revenue,  shall  be  allowed  credit  for  the  same  in 
settling  his  stamp  account  with  the  Department: 

And  provided  further,  That  in  case  it  shall  appear  that    Destruction  oi 
any  abandoned,  condemned,  or  forfeited  tobacco,  snuff,  D.acco  and  cigars. 
or  cigars,  when  offered  for  sale,  will  not  bring  a  price  equal 
to  the  tax  due  and  payable  thereon,  such  goods  shall  not 
be  sold  for  consumption  in  the  United  States;  and  upon 
application    made    to    the    Commissioner    of    Internal 
Revenue,   he   is   authorized   and   directed   to   order  the 
destruction  of  such  tobacco,  snuff,  or  cigars  by  the  officer    . 
in  whose  custody  and  control  the  same  may  be  at  the 


268  TOBACCO  AND   SNUFF. 

time,  and  in  such  manner  and  under  such  regulations  as 
the  Commissioner  of  Internal  Revenue  may  prescribe. 

As  to  power  to  establish,  alter,  or  change  stamps,  etc.,  see  sec- 
tions 3445  and  3446  as  amended,  pages  354,  355. 

As  to  stamps  on  tobacco  sold  on  distraint,  etc.,  section  3458, 
page  362. 

Tobacco  used  as  samples  must  be  stamped.  (23  Int.  Rev. 
Rec,  29.) 

As  to  the  issue  of  duplicate  stamps  for  restamping  packages 
of  tobacco  from  which  the  stamps  have  been  lost  or  destroyed 
by  accident.     (See  sec.  3315,  R.  S.,  p.  209.) 

The  term  "tax,"  as  used  in  the  last  proviso  of  section  3369,  is 
not  intended  to  include  import  duties;  and  cigarettes,  when  for- 
feited, may  be  sold  and  delivered  when  they  bring  enough  to 
pay  the  internal-revenue  tax,  although  they  may  not  bring 
enough  to  pay  that  and  the  customs  duties.  (United  States  v. 
59  Demijohns  Aguadiente  and  Four  Barrels  of  Cigarettes.  (1889.) 
39  Fed.  Rep.,  401.)  See  Department  Circular,  No.  34,  February 
18,  1898.  T.  D.,  18984.) 

Tobacco  manu-     Sec.  3370.  Whenever  tobacco  or  snuff  of  any  descrip- 

factured    by    one    ..  „  i     •  i      i  •  j_  -r 

person  for  an- tion  is  manufactured,  m  whole  or  in  part,  upon  commis- 
shahresV  stamp"  si°n  or  shares,  or  the  material  from  which  any  such  arti- 
by  whom  affixed- cies  are  made,  or  are  to  be  made,  is  furnished  by  one 

IT  1,11  (1        in        suco 

cases.  person  and  made  and  manufactured  by  another,  or  the 

material  is  furnished  or  sold  by  one  person  with  an  under- 
standing or  agreement  with  another  that  the  manu- 
factured article  is  to  be  received  in  payment  therefor  or 
for  any  part  thereof,  the  stamps  required  by  law  shall  be 
affixed  by  the  actual  maker  or  manufacturer  before  the 
article  passes  from  the  place  of  making  or  manufacturing. 
And  in  case  of  fraud  on  the  part  of  either  of  said  persons 
in  respect  to  said  manufacture,  or  of  any  collusion  on 
their  part  with  intent  to  defraud  the  revenue,  such  mate- 
rial and  manufactured  articles  shall  be  forfeited  to  the 
United  States;  and  each  party  to  such  fraud  or  collusion 

Penalty.  shall  be  deemed  guilty  of  a  misdemeanor,  and  be  fined 
not  less  than  one  hundred  dollars  nor  more  than  five 
thousand  dollars,  and  imprisoned  for  not  less  than  six 
months  nor  more  than  three  years. 

Assessment   of     sEC.  3371  [as  amended  by  sec.  1A,  act  of  Mar.  1,  1879 

ii'v    on    t  on  toco  *■ 

snuff,  and  cigars  (20  Stat.,  327).}  Whenever  any  manufacturer  of  tobacco, 
stamps.d  Wlth0,lt  snuff,  or  cigars,  sells,  or  removes  for  sale  or  consumption, 
any  tobacco,  snuff,  or  cigars,  upon  which  a  tax  is  required 
to  be  paid  by  stamps,  without  the  use  of  the  proper 
stamps,  it  shall  be  the  duty  of  the  Commissioner  of 
Internal  Revenue,  within  a  period  of  not  more'th/m  two 
years  after  such  sale  or  removal,  upon  satisfactory  proof, 
to  estimate  the  amount  of  tax  which  has  been  omitted 
to  be  paid,  and  to  make  an  assessment  therefor,  and 
certify  the  same  to  the  collector.  The  tax  so  assessed 
shall  be  in  addition  to  the  penalties  imposed  by  law  for 
such  sale  or  removal:  Provided,  however,  That  no  such 
assessment  shall  be  made  until  and  after  notice  to  the 
manufacturer  of  the  alleged  sale  and  removal  to  show 
cause  against  said  assessment;  and  the  Commissioner  of 
Internal  Ilevenue  shall,  upon  a  full  hearing  of  all  the 


TOBACCO  AND   SNUFF.  269 

evidence,  determine  what  assessment,  if  any.  should  be 
made. 

It  is  estimated  that  25  pounds  of  leaf  tobacco  will  make  1,000 
cigars.     (Regulations,  No.  8,  Rev.,  p.  58.) 

Authority  of  Commissioner  under  the  provisions  of  sections 
3371  and  3396  to  examine  returns  of  cigar  manufacturers  and  to 
treat  deficiency  in  product  based  on  the  return  of  1,000  cigars 
for  every  25  pounds  of  tobacco  as  prima  facie  evidence  oi  non- 
payment of  taxes.  (United  States  v.  Appel  and  Katencamp,  22 
Int.  Rev.  Rec,  169.) 

Sec.  3372.  Every  manufacturer  of  tobacco  or  snuff  who    Removing  un- 
removes,  otherwise  than  as  provided  by  law,  or  sells,  with- '^uy,   seui°g 

,i  i'ii  .i      witnout    stamps, 

out  the  proper  stamps  denoting  the  tax  thereon,  or  with- or   payment   of 
out  having  paid  the  special  tax  or  given  bond  as  required  bond,  making 
by  law,  any  tobacco  or  snuff,  or  who  makes  false  andfalse  entries' etc- 
fraudulent  entries  of  manufactures  or  sales  of  tobacco  or 
snuff,  or  makes  false  or  fradulent  entries  of  the  purchase 
or  sales  of  leaf-tobacco,  tobacco  stems,  or  other  material, 
or  who  affixes  any  false,  forged,  fraudulent,  spurious,  or 
counterfeit  stamp,  or  imitation  of  any  stamp,  required 
by  law,  or  any  stamp  required  by  law  which  has  been  pre- 
viously  used,    to   any  box   or  package   containing   any 
tobacco  or  snuff,  shall  in  addition  to  the  penalties  else- 
where provided  by  law  for  such  offenses,  forfeit  to  the    Forfeiture. 
United  States  all  the  raw  material  and  manufactured  or 
partly   manufactured   tobacco   and   snuff,    and   all   ma- 
chinery,  tools,   implements,   apparatus,  fixtures,   boxes, 
and  barrels,  and  all  other  materials  which  may  be  found 
in  his  possession,  in  his  manufactory,  or  elsewhere. 

The  tobacco  is  forfeited  for  fraud  of  the  manufacturer  in  the 
possession  of  an  innocent  purchaser.  (U.  S.  v.  800  Caddies  of 
Tobacco,  2  Btod,  305,  Fed.  Cas.  No.  15036.) 

Raw  material  intended  for  fraudulent  manufacture  may  be 
seized  for  forfeiture  wherever  found.  (United  States  v.  16 
Hogsheads  Tobacco,  2  Bond,  137,  Fed.  Cas.  No.  16302.) 

Sec.  3373.  The  absence  of  the  proper  stamp  on  any    Absence  of 

i  n  P  iji  rvini  i  •       stamp  to  be  evi- 

package  ot  manufactured  tobacco  or  snufi  shall  be  notice  dence  of  nonpay- 
to  all  persons  that  the  tax  has  not  been  paid  thereon,  andment" 
shall  be  prima-facie  evidence  of  the  non-payment  thereof. 
And   such   tobacco   or   snuff   shall   be   forfeited   to   the    Forfeiture. 
United  States. 

United  States  v.  Keyes  (10  Fed.  Rep.,  876). 
U.  S.  v.  117  Packages  of  Plug  Tobacco  (10  Ben.,  343,  Fed.  Cas. 
No.  15936). 
Quantity  of  Tobacco  (5  Ben.,  407,  20  Fed.  Cas.  No.  11500.) 

Sec.  3374.  Every  person  who  removes  from  any  rnanu-    Removing,  ex- 
factory,  or  from  any  place  where  tobacco  or  snuff  is  made, packages,  or 
any  manufactured  tobacco  or  snuff  without  the  same  being  s7iungUtu  niaT- 
put  up  in  proper  packages,  or  without  the  proper  stamp  fuUy.etc 
for  the  amount  of  tax  thereon  being  affixed  and  canceled, 
as  required  by  law;  or,  if  the  same  be  intended  for  export, 
without  the  proper  export  stamp  being  affixed;  or  who 
uses,  sells,  or  offers  for  sale,  or  has  in  possession,  except 
in  the  manufactory,  or  while  in  transfer  under  bond  or  a 
collector's  permit,  from  any  manufactory,  store,  or  ware- 


270  TOBACCO   AND   SNUFF. 

house,  to  a  vessel  for  exportation  to  a  foreign  country,  any 
manufactured  tobacco  or  snuff,  without  proper  stamps 
for  the  amount  of  tax  thereon  being  affixed  and  canceled; 
or  who  sells,  or  offers  for  sale,  for  consumption  in  the 
United  States,  or  uses,  or  has  in  possession,  except  in  the 
manufactory,  or  while  in  transfer  under  bond  or  a  collec- 
tor's permit,  from  any  manufactory,  store,  or  warehouse, 
to  a  vessel  for  exportation  to  a  foreign  country,  any  manu- 
factured tobacco  or  snuff  on  which  only  the  stamp  mark- 
ing the  same  for  export  has  been  affixed,  shall  for  each 

Penalty.  such  offense,  respectively,  be  fined  not  less  than  one 
thousand  dollars  nor  more  than  five  thousand  dollars, 
and  be  imprisoned  not  less  than  six  months  nor  more 
than  two  years. 

Affixing    false     Sec.  3375.  Every  person  who  affixes  to  any  package 

beaforeusedtamps containing  tobacco  or  snuff  any  false,  forged,  fraudulent, 

spurious,  or  counterfeit  stamp,  or  a  stamp  which  has 

been  before  used,  shall  be  deemed  guilty  of  a  felony,  and 

Penalty.  shall  be  fined  not  less  than  one  thousand  dollars  nor  more 
than  five  thousand  dollars,  and  imprisoned  not  less  than 
two  years  nor  more  than  five  years. 

stamps  on  emp-     gE'C-  3376.  Whenever  any  stamped  box,  bag,  vessel, 

be  destroyed;  wrapper,  or  envelope  or  any  kmd,  containing  tobacco  or 

usingnfame!m8,or  snuff,  is  emptied,  the  stamp  or  stamps  thereon  shall  be 

destroyed  by  the  person  in  whose  hands  the  same  may  be. 

Penalty.  And  every  person  who  willfully  neglects  or  refuses  so  to 
do  shall,  for  each  such  offense,  be  fined  fifty  dollars,  and 
imprisoned  not  less  than  ten  days  nor  more  than  six 
months.  And  every  person  who  sells  or  gives  away,  or 
who  buys  or  accepts  from  another  any  such  empty 
stamped  box,  bag,  vessel,  wrapper,  or  envelope  of  any 
kind,  or  the  stamp  or  stamps  taken  from  any  such  empty 
box,  bag,  vessel,  wrapper,  or  envelope  of  any  kind,  shall, 
for  each  such  offense,  be  fined  one  hundred  dollars,  and 
imprisoned  for  not  less  than  twenty  days  and  not  more 
than  one  year.  And  every  manufacturer  or  other  person 
who  puts  tobacco  or  snuff  into  any  such  box,  bag,  vessel, 
wrapper,  or  envelope,  the  same  having  been  either  emptied, 
or  partially  emptied,  or  who  has  in  his  possession,  or  affixes 
to  any  box  or  other  package,  any  stamp  which  has  been  pre- 
viously used,  or  who  sells,  or  offers  for  sale,  any  box  or  other 
package  of  tobacco,  snuff,  or  cigars,  having  affixed  thereto 
any  fraudulent,  spurious,  imitation,  or  counterfeit  stamp, 
or  stamp  that  has  been  previously  used,  or  sells  from  any 
such  fraudulently  stamped  box  or  package,  or  has  in 
his  possession  any  box  or  package  as  aforesaid,  knowing 
the  same  to  be  fraudulently  stamped,  shall,  for  each 
such  offense,  be  fined  not  less  than  one  hundred  dollars 
nor  more  than  five  hundred  dollars,  and  imprisoned  for 
not  less  than  one  year  nor  more  than  three  years. 

See  section  3455,  p.  360. 

ba^aud^runr"     Sec-  3377  ^as  amended  by  sec.  14,  act  of  Mar.  1,  1879  (20 
Stat,  327).]     All  manufactured  tobacco  and  snuff  (not  in- 


TOBACCO  AND  SNUFF.  271 

eluding  cigars)  imported  from  foreign  countries,  shall,  in 
addition  to  the  import  duties  imposed  on  the  same,  pay 
the  tax  imposed  by  law  on  like  kinds  of  tobacco  and  snuff 
manufactured  in  the  United  States,  and  have  the  same 
stamps  respectively  affixed.     Such  stamps  shall  be  affixed 
and  canceled  on  all  such  articles  so  imported  by  the  owner 
or  importer  thereof,  while  they  are  in  the  custody  of  the 
proper  custom-house  officers,  and  such  articles  shall  not 
pass  out  of  the  custody  of  said  officers  until  the  stamps 
have  been  affixed  and  canceled.     Such  tobacco  and  snuff 
shall  be  put  up  in  packages,  as  prescribed  by  law  for  like 
articles  manufactured  in  the  United  States  before  the 
stamps  are  affixed;  and  the  owner  or  importer  shall  be 
liable  to  all  the  penal  provisions  prescribed  for  manu- 
factures of  tobacco  and  snuff  manufactured  in  the  United 
States.     Whenever  it  is  necessary  to  take  any  such  arti- 
cles, so  imported,  to  any  place  for  the  purpose  of  repack- 
ing, affixing,  and  canceling  such  stamps,  other  than  the 
public  stores  of  the  United  States,  the  collector  of  cus- 
toms of  the  port  where  they  are  entered  shall  designate  a 
bonded  warehouse  to  which  they  shall  be  taken,  under  the 
control  of  such  customs  officers  as  he  may  direct.     And 
every  officer  of  customs  who  permits  any  such  articles  to 
pass*  out  of  Ms  custody  or  control  without  compliance  by 
the  owner  or  importer  thereof  with  the  provisions  of  this 
section  relating  thereto,  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  shall  be  fined  not  less  than  one  thousand 
dollars  nor  more  than  five  thousand  dollars,  and  impris- 
oned not  less  than  six  months  nor  more  than  three  years: 
Provided,   That  scraps,  cuttings,  and  clippings  of  tobacco  J^n P o^tej^ 
imported  from  any  foreign  country  may,  after  the  proper  and  cuppings  of 
customs  duty  has  been  paid  thereon,  be  withdrawn  in  bulk tobacco- 
without  the  payment  of  the  internal-revenue  tax,  and  trans- 
ferred as  material  directly  to  the  factory  of  a  manufacturer  of 
tobacco  or  snuff,  or  of  a  cigar  manufacturer ■,  under  such  re- 
strictions and  regulations  as  shall  be  prescribed  by  the  Com- 
missioner of  Internal  Revenue  and  approved  by  the  Secre- 
tary of  the  Treasury. 

Sec.  3378.  (Obsolete).  Tobacco  deemed  as  having  been 
manufactured  after  July  twentieth,  eighteen  hundred  and 
sixty-eight. 

Sec.  3379.  (Obsolete.)  Relates  to  tobacco,  snuff,  and 
cigars  manufactured  between  July  20,  1868,  and  November 
28,  1883. 

Sec.  3380.  (Obsolete.)  Selling  tobacco  falsely  repre- 
sented to  be  made  and  tax  paid  before  July  20,  1868. 

Sec.  3244  (as  amended.    Eleventh  sub-section].    Any  per-  b  ™Se°df. t0" 
son  who  sells  or  offers  to  sell  and  deliver  manufactured 
tobacco,  snuff,  or  cigars,  traveling  from  place  to  place,  in 
the  town  or  through  the  country,  shall  be  regarded  as  a 
peddler  of  tobacco. 

Under  existing  law  peddlers  of  tobacco  are  not  required  to 
pay  special  tax. 


272  TOBACCO   AND   SNUFF. 

baccoddlers  °f  t0"     Sec>  3381  [as  amended  ty  sec.  28,  act  of  Oct  1,  1890  (26 
Stat.,    618)].     Every    peddler   of   tobacco,    before   com- 
mencing, or,  if  he  has  already  commenced,  before  con- 
tinuing to  peddle  tobacco,  shall  furnish  to  the  collector 
statement,  0f  j^g  district  a  statement  accurately  setting  forth  the 
place  of  his  residence,  and,  if  in  a  city,  the  street  and  num- 
ber of  the  street  where  he  resides,  the  State  or  States 
through  which  he  proposes  to  travel;  also  whether  he 
proposes  to  sell  his  own  manufactures  or  the  manufactures 
of  others,  and,  if  he  sells  for  other  parties,  the  person  for 
Bond.     Formwhom  he  sells.     He  shall  also  give  a  bond  in  the  sum  of 
five  hundred  dollars,  to  be  approved  by  the  collector  of 
the  district,  conditioned  that  he  shall  not  engage  in  any 
attempt,  by  himself  or  by  collusion  with  others,  to  defraud 
the  Government  of  any  tax  on  tobacco,  snuff,  or  cigars; 
that  he  shall  neither  sell  nor  offer  for  sale  any  tobacco, 
snuff,  or  cigars,  except  in  original  and  full  packages,  as  the 
law  requires  the  same  to  be  put  up  and  prepared  by  the 
manufacturer  for  sale,  or  for  removal  for  sale  or  consump- 
tion, and   except  such  packages  of  tobacco,  snuff,  and 
cigars  as  bear  the  manufacturer's  label  or  caution  notice, 
and  Ms  legal  marks  and  brands,  and  genuine  internal- 
revenue  stamps  which  have  never  before  been  used. 
Peddlers  of  to-     Sec.  3382.  Every  peddler  of  tobacco,  snuff,  or  cigars, 

w1th°wagonTelins  traveling  with  a  wagon,  shall  affix  and  keep  on  the  same, 
in  a  conspicuous  place,  a  sign  painted  in  oil-colors,  or 
gilded,  giving  his  full  name,  business,  and  collection  dis- 
trict. 
Peddler  to  ob-     Sec.  3383  [as  amended  by  sec.  29,  act  of  Oct.  1,  1890  (26 

&^te,eete!blt£fo£.,  618)].  Every  peddler  of  tobacco  shall  obtain  a 
certificate  from  the  collector  of  his  collection  district, 
who  is  hereby  authorized  and  directed  to  issue  the  same, 
giving  the  name  of  the  peddler,  his  residence,  and  the  fact 
of  his  having  filed  the  required  bond;  and  shall  on  de- 
mand of  any  officer  of  internal  revenue  produce  and  ex- 
hibit his  certificate.  And  whenever  any  peddler  refuses 
to  exhibit  his  certificate,  as  aforesaid,  on  demand  of  any 
officer  of  internal  revenue,  said  officer  may  seize  the 
horse  or  mule,  wagon,  and  contents,  or  pack,  bundle,  or 
basket,  of  any  person  so  refusing;  and  the  collector  of  the 
district  in  which  the  seizure  occurs  may,  on  ten  days' 
notice,  published  in  any  newspaper  in  the  district,  or 
served  personally  on  the  peddler,  or  at  his  dwelling- 
house,  require  such  peddler  to  show  cause,  if  any  he  has, 
why  the  horses  or  mules,  wagons,  and  contents,  pack, 
Forfeiture.  bundle,  or  basket  so  seized  shall  not  be  forfeited.  In  case 
no  sufficient  cause  is  shown,  proceedings  for  the  forfeiture 
of  the  property  seized  shall  be  taken  under  the  general 
provisions  of  the  internal-revenue  laws  relating  to  for- 
feitures. An}"  internal  revenue  agent  may  demand  pro- 
duction of  and  inspect  the  collector's  certificate  for  ped- 
dlers, and  refusal  or  failure  to  produce  the  same,  when  so 
Penalty.         demanded,  shall  subject  the  party  guilty  thereof  to  a  fine 


TOBACCO   AND    SNUFF.  273 

of  not  more  than  five  hundred  dollars  and  to  imprison- 
ment not  more  than  twelve  months. 

Sec.  3384  [as  amended  by  sec.  15,  act  of  Mar.  1,  1879  {20 
Stat.,  346)].  Every  person  who  is  found' peddling  tobacco,  Peddling to- 
snuff,  or  cigars,  without  having  given  the  bond,  or  without  fuiiy;  penalty' 
having  previously  obtained  the  collector's  certificate  as 
herein  provided,  or  who  sells  tobacco,  snufT,  or  cigars  other- 
wise than  in  original  and  full  packages  as  put  up  by  the 
manufacturer;  or  who  has  in  his  possession  any  internal- 
revenue  stamp  winch  has  been  removed  from  any  box  or 
other  package  of  tobacco,  snuff,  or  cigars,  or  any  empty  or 
partially  emptied  box  or  other  package  which  has  been 
used  for  tobacco,  snuff,  or  cigars,  the  stamp  or  stamps  on 
which  have  not  been  destroyed;  or  who  fails  to  have 
affixed  to  his  wagon,  in  a  conspicuous  place,  a  sign, 
painted  in  oil  colors,  or  gilded,  giving  his  full  name,  busi- 
ness, and  collection  district,  shall,  for  each  such  offense, 
be  fined  not  less  than  one  hundred  dollars  nor  more  than 
five  hundred  dollars,  or  imprisoned  not  less  than  six 
months  nor  more  than  one  year,  or  both,  at  the  discretion 
of  the  court.  And  any  collector  or  deputy  collector  finding 
such  peddler  in  the  act  of  of 'ending  as  to  either  of  the  offenses 
mentioned  in  this  section,  may  seize  the  horse  or  horses, 
mule  or  mules,  wagon  and  contents,  or  pad:,  bundle,  or 
basket,  of  any  such  person;  and  the  collector  shall  thereupon 
proceed  upon  such  seizure  as  provided  in  section  thirty- 
three  hundred  and  eighty-three. 

Sec.  3385  [as  amended  by  act  of  June  9,  1880  {21  Stat.. 
167),  amended  and  re-enacted  by  act  of  Aug .  8 ,  1882  (22Stat., 
372),  and  amended  by  act  of  Jan.  13,  1883  {22  Stat.,  402)]. 
Manufactured  tobacco,  snuff,  and  cigars  intended  for  Exportation  of 
immediate  exportation  may,  after  being  properly  in-  {"acco! etcUred  U 
spected,  marked,  and  branded,  be  removed  from  the 
manufactory  in  bond  without  having  affixed  thereto 
the  stamps  indicating  the  payment  of  the  tax  thereon. 
The  removal  of  such  tobacco,  snuff,  and  cigars  from  the 
manufactory  shall  be  made  under  such  regulations,  and 
after  making  such  entries,  and  executing  and  filing  with 
the  collector  of  the  district  from  which  the  removal  is  to 
be  made  such  bonds  and  bills  of  lading,  and  giving  such 
other  additional  security  as  may  be  prescribed  by  the  Com- 
missioner of  Internal  Revenue  and  approved  by  the  Secre- 
tary of  the  Treasury.  There  shall  be  affixed  to  each  pack- 
age of  tobacco,  snuff,  and  cigars  intended  for  immediate 
export,  before  it  is  removed  from  the  manufactory,  an  en- 
graved stamp  indicative  of  such  intention.  Such  stamp  Export  stamps 
shall  be  provided  and  furnished  to  the  several  collectors  as 
in  the  case  of  other  stamps,  and  they  shall  account  for  the 
use  of  the  same.  When  the  manufacturer  has  made  the 
proper  entries,  filed  the  bonds,  and  otherwise  complied 
with  the  requirements  of  law  and  the  regulations  as  herein 
provided,  the  collector  shall  issue  to  him  a  permit  for  the 

72170°— 11 18 


274  TOBACCO  AND   SNUFF. 

removal,  accurately  describing  the  tobacco,  snuff,  and 
cigars,  to  be  shipped,  the  number  and  kinds  of  packages, 
the  number  of  pounds,  the  marks  and  brands,  the  State 
and  collection  district  from  which  the  same  are  shipped, 
the  number  of  the  manufactory  and  the  manufacturer's 
name,  the  port  from  which  the  said  tobacco,  snuff,  and 
cigars  are  to  be  exported,  and  the  route  or  routes  over 
which  the  same  are  to  be  sent  to  the  port  of  shipment. 
Upon  the  presentation  to  the  collector  of  internal  revenue 
of  a  detailed  report  from  the  inspectors  of  customs,  and  a 
certificate  of  the  collector  of  customs  at  the  port  from 
which  the  goods  are  to  be  exported  that  the  goods  re- 
moved from  the  manufactory  under  bond  and  described 
in  the  permit  of  the  collector  of  internal  revenue  have 
been  received  by  the  said  collector  of  customs,  and  that 
the  said  goods  were  duly  laden  on  board  of  a  foreign- 
bound  vessel,  naming  the  vessel,  and  that  the  said  mer- 
chandise was  entered  on  the  outward  manifest  of  said  ves- 
sel, and  that  the  said  vessel  and  cargo  were  duly  cleared 
from  said  port,  and  on  the  payment  of  the  tax  or  defi- 
ciency, if  any,  the  bonds,  which  have  been  given  or  shall 
hereafter  be  required  to  be  given  under  the  provisions  of 
cancellation  of  this  section  shall  be  canceled.  But  when  the  goods  are 
Act'of  Jan.  i3,  exported  to  an  adjacent  foreign  territory,  by  vessel  or  oiher- 

1SS3-  wise,   said  bonds  snail  be  canceled  upon  such  proofs  of 

(  a  I'ortation  as  may  be  prescribed  by  the  Commissioner  of 
Internal  Revenue,  with  the  approval  of  the  Secretary  of  the 
Treasury. 

Every  person  who,  with  the  intent  to  defraud  the  reve- 
nue laws  of  the  United  States,  relands  or  causes  to  be 
relanded  within  the  jurisdiction  of  the  United  States  any 
manufactured  tobacco,  snuff,  or  cigars  which  have  been 
shipped  for  exportation  under  the  provisions  of  this  act, 
without  properly  entering  such  tobacco,  snuff,  or  cigars 
at  the  custom-house,  and  paying  the  proper  customs  and 
internal  revenue  tax  thereon,  or  who  receives  such  re- 
landed  tobacco,  snuff,  or  cigars,  and  every  person  who 
aids  or  abets  in  such  relanding  or  receiving  such  tobacco, 
snuff  or  cigars,  shall,  on  conviction,  be  fined  not  exceeding 

lanVnn^tobaccc Ave  thousand  dollars,  or  imprisoned  not  more  than  three 

shipped  for  ex- years,  and  all  tobacco,  snuff,  or  cigars  so  relanded  shall  be 

pon-  forfeited  to  the  United  States. 

The  only  substantial  change  from  the  amended  section  made 
by  the  act  of  August  8,  1882,  was  striking  out  the  following  words 
relating  to  the  export  stamp:  "And  for  the  expense  attending 
the  providing  and  affixing  thereof  ten  cents  for  each  package  so 
stamper!  shall  be  paid  to  the  collector  on  making  the  entry  for 
such,  tra  nspi  irtation . ' ' 

The  exportation  stamp  required  to  be  affixed  to  packages  of 
tobacco  intended  for  exportation  declared  constitutional.  (Pace 
v.  Burgess,  92  U.  S.,  372;  22  Int.  Rev.  Rec,  145.)  Decision 
affirmed .  (Turpin  v.  Burgess,  117  U.  S.,  504;  32  Int.  Rev.  Rec, 
119.) 

Persons  proposing  to  manufacture  tobacco  and  cigars  exclu- 

•     Edvely  for  export  required  to  qualify  both  as  manufacturers  of 

tobacco  and  as  cigar  manufacturers.    Tobacco,  cigars,  and  ciga- 


TOBACCO   AND    SNUFF.  275 

rettes  manufactured  exclusively  for  export  may  be  packed  in 
such  quantity  and  in  such  kind  of  packages  as  desired.  (T.  D., 
19124,  1898.) 

(See  on  this  section  United  States  v.  Allen,  39  Fed.  Rep.,  100; 
Ryan  v.  United  States,  19  Wall.,  514.) 

^  [Sec.  3385a.]  [See.  24,  act  of  Feb.  8,  1875  {IS  Stat,  307).] 
That  whenever  any  manufacturer  of  tobacco  shall  desire  ,0n  withdrawal 

,  -iij  ji  c  l  •       <•  j>  i     ,  •        ol  tobacco  for  ex- 

to  withdraw  the  same  from  his  factory  tor  exportation portation,  trans- 
under  existing  laws,  such  manufacturer  may,  at  his  op-  mayabetakenund 
tion,  in  lieu  of  executing  an  export  bond,  as  now  provided 
by  law,  give  a  transportation  bond,  with  sureties  satis- 
factory to  the  collector  of  internal  revenue,  and  under 
such  rules  and  regulations  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treas- 
ury,   may   prescribe,    conditioned   for   the    due   delivery 
thereof  on  board  ship  at  a  port  of  exportation  to  be  named 
therein;  and  in  such  case,  on  arrival  of  the  tobacco  at  the 
port  of  export,  the  exporter  or  owner  at  that  port  shall 
immediately  notify  the  collector  of  the  port  of  the  fact,  le^°*^^.  co1" 
setting  forth  his  intention  to  export  the  same,  the  name  of 
the  vessel  upon  which  the  same  is  to  be  laden,  and  the  port 
to  which  it  is  intended  to  be  exported.     He  shall,  after  the 
quantity  and  description  of  tobacco  have  been  verified  by 
the  inspector,  file  with  the  collector  of  the  port  an  export    Export  entry. 
entry  verified  by  affidavit.     He  shall  also  give  bond  to    Export  bond. 
the  United  States,  with  at  least  two  sureties,  satisfactory 
to  the  collector  of  customs,  conditioned  that  the  principal 
named  in  said  bond  will  export  the  tobacco  as  specifietl  in 
said  entry,  to  the  port  designated  in  said  entry,  or  to  some 
other  port  without  the  jurisdiction  of  the  United  States. 
And  upon  the  lading  of  such  tobacco,  the  collector  of  the 
port,  after  proper  bonds  for  the  exportation  of  the  same 
have  been  completed  by  the  exporter  or  owner  at  the  port 
of  shipment  thereof,  shall  transmit  to  the  collector  of 
internal   revenue    of   the    district   from   which   the   said 
tobacco  was  withdrawn  for  exportation,  a  clearance  cer-    clearance   cer- 
tificate  and   a  detailed  report  of  the   inspector;  which spector's report. 
report  shall  show  the  quantity  and  description  of  manu- 
factured   tobacco,    and    the   marks    thereof.     Upon   the 
receipt  of  the  certificate  and  report,  and  upon  payment  of 
tax  on  deficiency,  if  any,  the  collector  of  internal  reven^e^^f^rfft",,"! 
shall  cancel  the  transportation  bond.  bondP° 

The  bonds  required  to  be  given  for  the  landing  at  a  for-  CanPeJlantdon  of 
eign  port  of  such  manufactured  tobacco  shall  be  canceled exp01 
upon  the  presentation  of  satisfactory  proof  and  certificates 
that  said  tobacco  has  been  landed  at  the  port  of  destina- 
tion named  in  the  bill  of  lading,  or  any  other  port  without 
the  jurisdiction  of  the  United  States,  or  upon  satisfactory 
proof  that  after  shipment  the  same  was  lost  at  sea  without 
fault  or  neglect  of  the  owner  or  exporter  thereof. 

As  bonds  given  under  section  3385,  as  amended,  are  canceled 
on  proof  of  clearance  of  the  articles  therein  named  for  a  foreign 
country,  exporters  do  not  now  avail  themselves  of  the  provisions 
of  this  section. 


276  TOBACCO   AND   SNUFF. 

au?hofilZedations  ,  tSEC-  33856-l  Wet.  1,  act  of  Aug.  4,  1886  (24  Stat,  218).} 
That  manufactured  tobacco,  snuff,  and  cigars  may  be  re- 
moved for  export  to  a  foreign  country  without  payment  of 
tax,  under  such  regulations,  and  the  making  of  such  en- 
tries, and  the  filing  of  such  bonds  and  bills  of  lading  as  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  shall  prescribe. 

Regulations  No.  29  revised  (1909). 

Section  23  of  the  act  of  August  5,  1909,  relative  to  the  manu- 
facture of  articles  from  materials  subject  to  internal-revenue 
tax  in  bonded  warehouses  under  Treasury  Regulations  for  ex- 
portation without  tax  being  paid,  page  333. 

tobaec'comto0bretered      [Sec-  3385c]  [Sec.  1,  paragraph  500,  act  of  Aug.  5,  1909 

tained  at  custom-  (36  S  ta  t.,  73).]     *     *     *    A  nd  provided  further,  That  when 

pakfand1  stamps  manufactured  tobacco  which  has  been  exported  without 

affixed.  payment  of  internal-revenue  tax  shall  be  re-imported  it 

shall  be  retained  in  the  custody  of  the  collector  of  customs 

until  internal- re  venue  stamps  in  payment  of  the  legal 

duties  shall  be  placed  thereon. 

See  section  26,  act  of  August  5,  1909,  page  337. 

ex?Xdatobacc^  Sec-  3386  \-as  amended  by  sec.  16,  act  of  Alar.  1,  1S79  (20 
snuff,  and  cigars.'  Stat,  827).].  There  shall  be  an  allowance  of  drawback  on 
tobacco,  snuff,  and  cigars  on  which  the  tax  has  been  paid 
by  suitable  stamps  affixed  thereto  before  removal  from 
the  place  of  manufacture,  when  the  same  are  exported, 
equal  in  amount  to  the  value  of  the  stamps  found  to  have 
been  so  affixed;  the  evidence  that  the  stamps  were  so 
affixed,  and  the  amount  of  tax  so  paid,  and  of  the  subse- 
quent exportation  of  the  said  tobacco,  snuff,  and  cigars,  to 
be  ascertained  under  such  regulations  as  shall  be  pre- 
scribed by  the  Commissioner  of  Internal  Revenue,  and 
approved  by  the  Secretary  of  the  Treasury.  Any  sums 
found  to  be  due  under  the  provisions  of  this  section  shall 
be  paid  by  the  warrant  of  the  Secretary  of  the  Treasury  on 
the  Treasurer  of  the  United  States  out  of  any  money  aris- 
ing from  internal  duties  not  otherwise  appropriated: 
Provided,  That  no  claim  for  an  allowance  of  drawback 
b  Cedrttflba tefiiadd  sna^  De  entertained  or  allowed  until  a  certificate  from  the 
collector  of  customs  at  the  port  from  which  the  goods  have 
been  exported,  or  other  evidence  satisfactory  to  the  Com- 
missioner of  Internal  Revenue,  has  been  furnished,  that 
the  stamps  affixed  to  the  tobacco,  snuff,  or  cigars  entered 
and  cleared  for  export  to  a  foreign  country  were  totally 
destroyed  before  such  clearance;  nor  until  the  claimant 
has  filed  a  bond,  with  good  and  sufficient  sureties,  to  be 
approved  by  the  collector  of  the  district  from  which  the 
goods  are  snipped,  in  a  penal  sum  double  the  amount  of 
the  tax  for  which  said  claim  is  made,  that  he  will  procure, 
within  a  reasonable  time,  evidence  satisfactory  to  the 
Commissioner  of  Internal  Revenue  that  said  tobacco, 
snuff,  or  cigars  have  been  landed  at  any  port  without  the 
jurisdiction  of  the  United  States,  or  that  after  shipment 
the  same  were  lost  at  sea.  and  have  not  been  relanded 
within  the  limits  of  the  United  States. 


TOBACCO   AND    SNUFF.  277 

[Sec.  3386a.]  [Sec.  25,  act  of  Feb.  8,  1875  (18  Stat,  SOT).]  Jj^dnl*£j[ 
That  if  any  person  or  persons  shall  fraudulently  claim  or  back  on  manu- 
seek  to  obtain  an  allowance  or  drawback  of  duties  on  anyfacturea  tobaeco- 
manufactured  tobacco,  or  shall  fraudulently  claim  any 
greater  allowance  or  drawback  thereon  than  the  duty 
actually  paid,  such  person  or  persons  shall  forfeit  triple    Punishment. 
the  amount  wrongfully  or  fraudulently  claimed  or  sought 
to  be  obtained,  or  the  sum  of  five  hundred  dollars,  at  the 
election  of  the  Secretary  of  the  Treasury,  to  be  recovered 
as  in  other  cases  of  forfeiture  provided  for  in  the  internal 
revenue  laws. 

See  also  penalty  provided  by  section  3443,  page  353. 


Chapter  Seven. 
CIGARS. 


Sec. 

3244.  Subsection  10.  Manufacturers  of 
cigars  denned. 

3387  (amended).  Manufacturer's  state- 
ment, bond,  and  certificate;  cig- 
arettes and  cheroots  held  to  be 
cigars;  penalty. 

3388.  Manufacturer's  sign. 

3389  (amended).  Record  of  manufactur- 
ers. 

3390.  Annual     inventory,     book,    and 

monthly   abstracts   of    manufac- 
turer; penalty. 

3391.  Dealers  in  materials  for  cigars  to 

make    sworn    statement;  exami- 
nation of  books. 

3392  (amended).  How    cigars   and    ciga- 

rettes to  be  put  up  and  stamped ; 
penalty. 

3393  (amended).    Caution    notice;    pen- 

alty. 

3394  (amended).  Tax  on  cigars  and  ciga- 

rettes. 

3395.  Stamps,  how  prepared,  furnished, 

etc. 

3396.  Commissioner  to  prescribe  regula- 

tions. 


Manufacturers 
of  cigars  defined. 


Sec. 

3397  (amended).  Removal  without  prop- 
erly boxing,  stamping,  or  brand- 
ing; using  false  stamps,  etc.; 
cigars  packed  for  export;  penalty. 

3398.  Absence    of    stamp    cause    of    for- 

feiture. 

3399.  Cigars    manufactured    on    shares, 

commission,  or  contract,  how 
stamped;  fraud,  penalty. 

3400.  Forfeiture  of  property  for  selling 

etc.,  contrary  to  law,  using  false 
stamps,  etc. 

3401.  (Obsolete.) 

3402.  Imported  cigars  to  pay  tax. 

3403.  Cigars  on  hand  after  April  1,  1869. 

Selling  imported  cigars  not 
packed  and  stamped  as  required 
by  law;  penalty. 

3404.  Purchasing  cigars  not  branded  or 

stamped;  penalty. 

3405.  (Obsolete.) 

3406.  Stamps  on  emptied  cigar  boxes  to  be 

destroyed;  penalty.  Destruction 
of  emptied  stamped  cigar  boxes; 
penalty. 


* 


Sec.  3244,  [as  amended.  Tenth  subsection]  *  : 
Every  person  whose  business  it  is  to  make  or  manufacture 
cigars  for  himself,  or  who  employs  others  to  make  or 
manufacture  cigars,  shall  be  regarded  as  a  manufacturer 
of  cigars.  Every  person  whose  business  it  is  to  make 
cigars  for  others,  either  for  pay  upon  commission,  on 
shares,  or  otherwise,  from  material  furnished  by  others, 
shall  be  regarded  as  a  cigar-maker.  Every  cigar-maker 
shall  cause  his  name  and  residence  to  be  registered, 
without  previous  demand,  with  the  collector  of  the  district 
in  which  such  cigar-maker  shall  be  employed ;  and  every 
manufacturer  of  cigars  employing  any  cigar-maker  who 
shall  have  neglected  or  refused  to  make  such  registry  shall 
be  fined  five  dollars  for  each  day  that  such  cigar-maker  so 
offending,  by  neglect  or  refusal  to  register,  shall  be  em- 
ployed by  him. 

The  provision  relative  to  registry  of  cigar-makers  is  virtually 
obsolete.  The  other  provisions  of  the  law  on  the  same  subject 
were  stricken  out  by  section  16,  act  of  March  1,  1879  (20  Stat., 
347),  amending  sections  3387,  page  279,  and  3389,  page  280,  and 
the  omission  to  strike  this  out  was  evidently  accidental. 

Special  tax  provision  repealed  by  act  October  1,  1890. 

Special  tax  again  imposed  by  act  June  13,  1898,  and  repealed 
by  the  act  of  April  12,  1902.  (Sec.  5.) 


278 


CIGARS.  279 


Sec.  3387  [,  as  amended  by  sec.  35,  act  of  Oct.  1,1890  {26  st£^ct^r 'J 
Stat.,6W).]  Everyperson  before  commencing,  or,  if  he  has  bond, 
already  commenced,  before  continuing,  the  manufacture  of 
cigars,  shall  furnish,  without  previous  demand  therefor,  to 
the  collector  of  the  district  a  statement  in  duplicate,  under  FormaNoe.  36j.nt' 
oath,  setting  forth  the  place,  and,  if  in  a  city,  the  street  and 
number  of  the  street,  where  the  manufacture  is  to  be  car- 
ried on;  and  when  the  same  are  to  be  manufactured  for, 
or  to  be  sold  and  delivered  to,  any  other  person,  the  name 
and  residence  and  business  or  occupation  of  the  person  for 
whom  they  are  to  be  manufactured,  or  to  whom  they  are 
to  be  delivered ;  and  shall  give  a  bond,  in  conformity  with  71Boml"  For,n 
the  provisions  of  this  Title,  in  such  penal  sum  as  the  col- 
lector may  require,  not  less  than  [one]  hundred  dollars, 
and  the  sum  of  said  bond  may  be  increased  from  time  to 
time  and  additional  sureties  required,  at  the  discretion  of 
the  collector,  or  under  the  instructions  of  the  Commis- 
sioner of  Internal  Revenue.  Said  bond  shall  be  condi- 
tioned that  *  *  *  he  shall  not  engage  in  any  at- 
tempt, by  himself  or  by  collusion  with  others,  to  defraud 
the  Government  of  any  tax  on  his  manufactures;  that  he 
shall  render  correctly  all  the  returns,  statements,  and  in- 
ventories prescribed;  that  whenever  he  shall  add  to  the 
number  of  cigar-makers  employed  by  him  lie  shall  imme- 
diately give  notice  thereof  to  the  collector  of  the  district; 
that  he  shall  stamp,  in  accordance  with  law,  all  cigars  man- 
ufactured by  him  before  he  offers  the  same  or  any  part 
thereof  for  sale,  and  before  he  removes  any  part  thereof 
from  the  place  of  manufacture;  tiiat  heshall  not  knowingly 
sell,  purchase,  expose,  or  receive  for  sale,  any  cigars  which 
have  not  been  stamped  as  required  by  law;  and  that  he 
shall  comply  with  all  the  requirements  of  law  relating  to 
the  manufacture  of  cigars.  Every  cigar-manufacturer 
shall  obtain  from  the  collector  of  the  district,  who  is  hereby 
required  to  issue  the  same,  a  certificate  setting  forth Fo^rN0fi4if te" 
the  number  of  cigar-makers  for  which  the  bond  has  been 
given,  and  shall  keep  the  same  posted  in  a  conspicuous 
place  within  the  manufactory;  and  every  cigar-manu- 
facturer who  neglects  or  refuses  to  obtain  such  certificate, 
or  to  keep  the  same  posted  as  hereinbefore  provided,  shall 
be  fined  one  hundred  dollars. 

And  every  person  who  manufactures  cigars  of  any  de-    Penalty. 
scription,  without  first  giving  bond  as  herein  required, 
shall  be  fined  not  less  than  one  hundred  dollars  nor  more 
than  five  thousand  dollars,  and  imprisoned  not  less  than 
three  months  nor  more  than  five  years. 

Cigarettes  and  cheroots  shall  be  held  to  be  cigars  under  chero^s^heid^o 
the  meaning  of  this  chapter.  be  cigars. 

The  place  of  manufacture  should  be  kept  separate  and  apart 
from  the  place  of  sale.  (U.  S.  v.  Neid,  13  Int.  Rev.  Rec,  28; 
Fed.  Cas.  No.  15,  860.) 

A  manufacturer  of  tobacco  or  cigars  can  not  sell  at  retail  at 
place  of  manufacture.  (Ludloff  v.  United  States,  108  U.  S.,  176; 
29  Int.  Rev.  Rec,  125;  16  Op.  Atty.Gen.,89;  24  Int.  Rev.  Rec, 
227. 


280  CIGARS. 

A  manufacturer  can  not  retail  cigars  in  his  cigar  factory.  (Crisp 
v.  Proud,  24  Int.  Rev.  Rec,  340;  4  Hughes  57,  Fed.  Cas.  No. 
3392.) 

Where  cigar  manufacturers  desire  to  voluntarily  file  a  new 
bond,  such  bonds,  if  approved  by  the  collector,  should  be  ac- 
cepted, and  the  manufacturers'  accounts  closed  under  the  old 
bond.  Sureties  on  old  bond  released  when  a  new  bond  is 
given.     (T.  D.  740.) 

Bond  of  minor  son  of  deceased  manufacturer.     (T.  D.  792.) 

Administrator  must  obtain  consent  of  sureties  to  continue  under 
bond  of  deceased.     (T.  D.  926.) 

Consent  of  sureties  necessary  before  factory  can  be  enlarged 
or  changed.     (T.  D.  964.) 

Manufacturer's  Sec.  3388.  Every  cigar-manufacturer  shall  place  and 
keep  on  the  side  or  end  of  the  building  within  which  his 
business  is  carried  on,  so  that  it  can  be  distinctly  seen,  a 
sign,  with  letters  thereon  not  less  than  three  inches  in 
length,  painted  in  oil-colors  or  gilded,  giving  his  full  name 
and  business.  Any  person  neglecting  to  comply  with  the 
requirements  of  tins  section  shall  on  conviction,  be  fined 
not  less  than  one  hundred  dollars  nor  more  than  five  hun- 
dred dollars. 

Sign  must  be  in  English  language.     (Regulations  No.  8,  p.  48.) 

u  Recordsman-     Sec.  3389  [,  as  amended  by  sec.  34,  att  of  Oct.  1, 1890  (26 
cigars  to  be  kept  Stat.,  620) .]     Every  collector  shall  keep  a  record,  in  a  book 
by  collector.        provided  for  that  purpose,  to  be  open  to  the  inspection  of 
only  the  proper  officers  of  internal-revenue,  including  deputy 
Record  a.       collectors  and  internal-revenue  agents,  of  the  name  and  resi- 
dence of  every  person  engaged  in  the  manufacture  of 
cigars  in  his  district,  the  place  where  such  manufacture  is 
carried  on,  and  the  number  of  the  manufactory;  and  he 
shall  enter  in  said  record,  under  the  name  of  each  manu- 
facturer an  abstract  of  Ins  inventory  and  monthly  returns ; 
and  he  shall  cause  the  several  manufacturers  of  cigars  in 
the  district  to  be  numbered  consecutively,  which  number 
shall  not  thereafter  be  changed. 
tory^DlbooknVenI     ^ec.  3390.  Every  person  now  or  hereafter  engaged  in 
tries'  and  month-  the  manufacture  of  cigars  shall  make  and  deliver  to  the 
manufacTu^er0.  collector  of  the  district  a  true  inventory,  in  such  form  as 
Form  No.  70b.     may  be  prescribed  by  the  Commissioner  of  Internal  Rev- 
enue, of  the  quantity  of  leaf  tobacco,  cigars,  stems,  scraps, 
clippings,  and  waste,  and  of  the  number  of  cigar-boxes  and 
the  capacity  of  each  box,  held  or  owned  by  him  on  the  first 
day  of  January  of  each  year,  or  at  the  time  of  commencing 
and  at  the  time  of  concluding  business,  if  before  or  after 
the  first  of  January;  setting  forth  what  portion  and  kinds 
of  said  goods  were  manufactured  or  produced  by  him,  and 
what  were  purchased  from  others,  and  shall  verify  said 
inventory  by  his  oath  indorsed  thereon.     The  collector 
shall  make  personal  examination  of  the  stock  sufficient  to 
Verification  of  satisfy  himself  as  to  the  correctness  of  the  inventory;  and 
shall  verify  the  fact  of  such  examination  by  oath  to  be 
indorsed  on  the  inventory.     Every  such  person  shall  also 
Form  No.  33.    enter  daily  in  a  book,  the  form  of  which  shall  be  prescribed 
by  the  Commissioner  of  Internal  Revenue,  an  accurate 
account  of  all  the  articles  aforesaid  purchased  by  him,  the 


inventory. 


CIGARS. 


281 


quantity  of  leaf-tobacco,  cigars,  stems,  or  cigar-boxes,  of 

whatever  description,  manufactured,  sold,  consumed,  or 

removed  for  consumption  or  sale,  or  removed  from  the 

place  of  manufacture;  and  shall,  on  or  before  the  tenth 

day  of  each  and  every  month,  furnish  to  the  collector  of 

the  district  a  true  and  accurate  abstract  from  such  book, 

verified  by  his  oath,  of  all  such  purchases,  sales,   and    Form  No.  72. 

removals  made  during  the  month  next  preceding.     In 

case  of  refusal  or  willful  neglect  to  deliver  the  inventory  or 

keep  the  account,  or  furnish  the  abstract  aforesaid,  he 

shall  be  fined  not  less  than  five  hundred  dollars  nor  more    Penalty. 

than  five  thousand  dollars,  and  imprisoned  not  less  than 

six  months  nor  more  than  three  years. 

Verification  of  returns  (T.  D.  1646).     Inventory  taken  July  1, 
1910  (T.  D.  1631). 

Sec.  3391  It  shall  be  the  duty  of  every  dealer  in  leaf-t?flefrinrma- 

.     ,  -li-  c  ••  i       tenal    for    cigars 

tobacco  or  material  used  m  manufacturing  cigars,  on  de-to  make  sworn 
mand  of  any  officer  of  internal  revenue,  to  render  to  such  demanded.  when 
officer  a  true  and  correct  statement,  under  oath,  of  the 
quantity  and  amount  of  such  leaf-tobacco  or  materials 
sold  or  delivered  to  any  person  named  in  such  demand; 
and  in  case  of  refusal  or  neglect  to  render  such  statement, 
or  if  there  is  cause  to  believe  such  statement  to  be  incor- 
rect or  fraudulent,  the  collector  shall  make  an  examina-ofE*amination 
tion  of  persons,  books,  and  papers  in  the  manner  provided 
in  this  Title  in  relation  to  frauds  and  evasions. 

See  sections  3163a,  page  76;  3173,  page  86;  and  3176,  page  89. 

Sec.  3392  [as  amended  by  sec.  32,  act  of  Oct.  1,  1890  (26 
Stat. ,619) ,  and  by  sec.  32,  act  of  Aug.  5, 1909  (36  Stat.,  109)]. 
All  cigars  weighing  more  than  three  pounds  per  thousand 
shall  be  packed  in  boxes  not  before  used  for  that  purpose  qim-ed. 
containing,  respectively,  five,  ten,  twelve,  thirteen, 
twenty-five,  fifty,  one  hundred,  two  hundred,  two  hun- 
dred and  fifty,  or  five  hundred  cigars  each ;  and  every  per- 
son who  sells,  or  offers  for  sale,  or  delivers,  or  offers  to 
deliver,  any  cigars  in  any  other  form  than  in  new  boxes  as 
above  described,  or  who  packs  in  any  box  any  cigars  in 
excess  of  or  less  than  the  number  provided  by  law  to  be 
put  in  each  box,  respectively,  or  who  falsely  brands  any 
box,  or  affixes  a  stamp  on  any  box  denoting  a  less  amount 
of  tax  than  that  required  by  law,  shall  be  fined  for  each 
offense  not  more  than  one  thousand  dollars,  and  be  impris- 
oned not  more  than  two  years:  Provided,  That  nothing  in 
this  section  shall  be  construed  as  preventing  the  sale  of 
cigars  at  retail  by  retail  dealers  from  boxes  packed, 
stamped  and  branded  in  the  manner  prescribed  by  law: 
And  provided  farther,  That  every  manufacturer  of  ciga- 
rettes shall  put  up  all  the  cigarettes  that  he  manufactures 
or  has  manufactured  for  him  and  sells  or  removes  for 
consumption  or  use,  in  packages  or  parcels  containing 
five,  eight,  ten,  fifteen,  twenty,  fifty,  or  one  hundred 
cigarettes  each,  and  shall  securely  affix  to  each  of 
said  packages  or  parcels  a  suitable  stamp  denoting  the 


Cigars. 

New   boxes  re- 


Penalty. 


Provisos. 


Retail  sales. 


Cigarettes. 


Packages 
quired. 


282 


CIGARS. 


rettes. 


tax  thereon,  and  shall  properly  cancel  the  same  prior  to 
such  sale  or  removal  for  consumption  or  use,  under  such 
regulations  as  the  Commissioner  of  Internal  Revenue 
imported  ciga-sjiapi  prescribe;  and  all  cigarettes  imported  from  a 
foreign  country  shall  be  packed,  stamped,  and  the  stamps 
canceled  in  like  manner,  in  addition  to  the  import  stamp 
indicating  inspection  of  the  customhouse  before  they  are 
withdrawn  therefrom. 

Cigars  shall  be  put  up  in  boxes  properly  stamped  and  branded 
with  the  number  of  the  factory  and  number  of  the  district  and 
the  State.  (United  States  v.  76,125  Cigars,  18  Fed.  Rep.,  147; 
Jackson  v.  United  States,  21  Fed.  Rep.,  35.) 

Label  and  no-     Sec.  3393  [as  amended  by  sec.  16,  act  of  Mar.  1,  1S79 


tice  on  cigars. 


(20  Stat.,  3.27)]*  Every  manufacturer  of  cigars  shall 
securely  affix,  by  pasting  on  each  box  containing  cigars 
manufactured  by  or  for  him,  a  label,  on  which  shall  be 
printed,  besides  the  number  of  the  manufactory  and 
the  district  and  State  in  which  it  is  situated,  these  words: 

Notice. — The  manufacturer  of  the  cigars  herein  contained  has  com- 
plied with  all  the  requirements  of  law.  Every  person  is  cautioned  not 
to  use  either  this  box  for  cigars  again,  or  the  stamp  thereon  again,  nor 
to  remove  the  contents  of  this  box  without  destroying  said  stamp, 
under  the  penalties  provided  by  law  in  such  cases. 

Every  manufacturer  of  cigars  who  neglects  to  affix 
such  label  to  any  box  containing  cigars  made  by  or  for 
him,  or  sold  or  offered  for  sale  by  or  for  him,  and  every 
person  who  removes  any  such  label,  so  affixed,  from  any 
such  box,  shall  be  fined  fifty  dollars  for  each  box  in  re- 
spect to  which  such  offense  is  committed. 

Imprinting  caution  notice  on  cigar  boxes  (T.  D.  1599). 

Sec.  3394  [as  amended  by  sec.  33,  act  of  Aug.  5.  1909 
(36  Stat.,  110).]  Upon  cigars  and  cigarettes  which  shall 
be  manufactured  and  sold,  or  removed  for  consumption  or 
sale,  there  shall  be  assessed  and  collected  the  following 
taxes,  to  be  paid  by  the  manufacturer  thereof:  On  cigars 
of  all  descriptions  made  of  tobacco  or  any  substitute 
therefor  and  weighing  more  than  three  pounds  per  thou- 
sand, three  dollars  per  thousand;  on  cigars,  made  of 
tobacco,  or  any  substitute  therefor,  and  weighing  not 
more  than  three  pounds  per  thousand,  seventy-five  cents 
per  thousand;  on  cigarettes,  made  of  tobacco,  or  any 
substitute  therefor,  and  weighing  more  than  three  pounds 
per  thousand,  three  dollars  and  sixty  cents  per  thousand; 
on  cigarettes,  made  of  tobacco,  or  any  substitute  therefor, 
and  weighing  not  more  than  three  pounds  per  thousand, 
one  dollar  and  twenty-five  cents  per  thousand:  Provided, 
That  all  rolls  of  tobacco,  or  any  substitute  therefor, 
wrapped  with  tobacco,  shall  be  classed  as  cigars:  and  all 
rolls  of  tobacco,  or  any  substitute  therefor,  wrapped  in 
paper  or  any  substance  other  than  tobacco,  shall  be 
classed  as  cigarettes. 
ratecrftax!°r  And  the  Commissioner  of  Internal  Revenue,  with  the 

approval  of  the  Secretary  of  the  Treasury,  shall  pro- 
vide dies  and  stamps  for  cigars  weighing  not  more  than 


Penalty. 


Rates  of  tax. 


Cigars. 


Cigarettes. 


Proviso. 
Classification. 


CIGARS. 


283 


three  pounds  per  thousand;  and  for  cigarettes  at  the 
rates  of  tax  imposed  by  this  section:  Provided,  That 
such  stamps  shall  be  in  denominations  of  five,  eight, 
ten,  fifteen,  twenty,  fifty,  and  one  hundred;  and  the 
laws  and  regulations  governing  the  packing  and  removal 
for  sale  of  cigarettes,  and  the  affixing  and  canceling  of 
the  stamps  on  the  packages  thereof,  shall  apply  to  cigars 
weighing  not  more  than  three  pounds  per  thousand. 

Xo  packages  of  manufactured  tobacco,  snuff,  cigars, 
or  cigarettes,  prescribed  by  law,  shall  be  permitted  to 
have  packed  in,  or  attached  to,  or  connected  with,  them, 
nor  aliixed  to,  branded,  stamped,  marked,  written,  or 
printed  upon  them,  any  paper,  certificate,  or  instrument 
purporting  to  be  or  represent  a  ticket,  chance,  share  or 
interest  in,  or  dependent  upon,  the  event  of  a  lottery, 
nor  any  indecent  or  immoral  picture,  representation, 
print,  or  words;  and  any  violation  of  the  provisions  of 
this  paragraph  shall  subject  the  offender  to  the  penalties 
and  punishments  provided  by  section  thirty-four  hundred 
and  fifty-six  of  the  Revised  Statutes. 

Section  3394  was  amended  by  section  2,  act  of  March  3.  1875 
(18  Stat.,  339);  section  4,  act  of  March  3,  1SS3  c>2  Stat.,  488); 
section  10,  act  of  July  24,  1897  (30  Stat.,  206);  section  3,  act  of 
June  13,  1898  (30  Stat.,  449);  section  3,  act  of  March  2,  1901 
(31  Stat.,  939);  section  3,  act  of  April  12,  1902  (32  Stat.,  96);  act 
of  July  1,  1902,  and  section  33,  act  of  August  5.  1909  (36  Slat., 
110),  taking  effect  July  1,  1910. 

'•Jumbo12'  cigars,  or  cigars  of  unusual  size,  to  be  classified  aa 
manufactured  tobacco.  The  fact  that  they  could  be  smoked 
did  not  altogether  determine  their  character.  (D'Estrinoz  v. 
Gerker,  43  Fed.  Rep.,  285.) 

Date  of  acts  imposing  tax  on  cigars  and  cigarettes  and  rates  of  tax. 


Proviso. 
Denominations 


Restrictions  on 
all  packages. 


Cigars  valued  at  not  over  .?.r)  per  M 

Valued  at  over  $5  and  not  over  S10 

per  M 

Valued  at  over  810  and  not  over  $20 

per  M 

Valued  at  over  S20  per  M 

Cheroots  valued  at  not  over  So  per  M. . . 

Cigars  valued  at  not  over  $5  per  M 

Valued  at  over  $5  and  not  over  §15 

per  M 

Valued  at  over  Slo  and  not  over  $30 

per  M 

Valued  at  over  S30  and  not  over  $45 

per  M 

Valued  at  over  S45  per  Jtl 

Cigarettes  valued  at  not  over  $G  per  100 

packages  of  25  each 

Valued  at  over  $6  per  100  packages 

of  25  each 

Cigarettes  made  wholly  of  tobacco 

Cigars  and  cheroots  made  wholly  of  to- 
bacco or  of  any  substitutes  therefor. . 
Cigarettes  valued  at  not  over  $5  per  100 

packages  of  25  each 

Valued  at  over  S5  per  100  packages 

of  25  each 

Cigarettes  made  wholly  of  tobacco  or  of 
any  substitutes  therefor 

i  Per  100  packages. 


Rates 
of  tax. 


Per  M. 

$1.50 

2.00 

2.50 
3.50 
3.00 
3.00 

8.00 

15.00 

25.00 
40.00 

i  1.00 

13.00 
3.00 

10.00 
2.05 
3.05 

10.00 


Acts  impos- 
ing tax. 


Length 
Acts  repeal-     °{£™ 

™Z  *«■         w?£in 

force. 


July     1.1SG2 

....do 

....do 

do 

June  30,1864 
do.. 

do 

....do 

do 

....do 

....do 

....do 

do 

Mar.     3, 18G5 

....do 

....do 

....do 


2  Per  package. 


June  30   1864 

do 

do 

do 

Mar.     3,1865 
do 

do 

do 

do 

do 

do 

do 

do 

July    13, 1SGG 

do 

do 

do 

3  Per  cent. 


Months. 
22 


22 

22 
9 
9 

9 

9 

9 
9 

9 

9 
9 

1G 

16 

16 

16 


Lottery. 


Penalty. 


284 


CIGARS. 


Date  of  acts  imposing  tax  on  cigars  and  cigarettes  and  rates  of 

tax — Continued . 


Cigars,  cigarettes,  and  cheroots  valued 

at  $8  per  M  or  les%. 

Valued  at  over  $8  and  not  over  $12 

per  M 

Valued  at  over  $12  per  M 

Cigars,  cigarettes,  and  cheroots  of  all 

descriptions 

Cigars  and  cheroots  of  all  descriptions. . . 
Cigarettes  weighing  not  over  3  pounds 

per  M 

Weighing  over  3  pounds  per  M 

Cigars  and  cheroots  of  all  descriptions 

Cigarettes  weighing  not  over  3  pounds 

per  M 

Weighing  over  3  pounds  per  M 

Cigars  and  cheroots  of  all  descriptions. . . 
Cigarettes  weighing  not  over  3  pounds 

per  M 

Weighing  over  3  pounds  per  M 

Cigars  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 

per  M 

Cigarettes  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 

per  M 

Cigars  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 

per  M 

Cigarettes  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 

per  M 

Cigars  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 

per  M 

Cigarettes  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 
per  M  of  wholesale  value  or  price 
of— 

Not  over  $2  per  M 

More  than  $2  per  M 

Cigars  weighing  more   than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 

per  M 

Cigarettes  weighing  more  than  3  pounds 

per  M 

Weighing  not  more  than  3  pounds 
per  M 


Rates 
of  tax. 


Per  M. 

$2.00 

4.00 
M.OO 

5.00 
5.00 

1.50 
5.00 
6.00 

1.75 
6.00 
3.00 

.50 
3.00 

3.00 

1.00 

3.00 

1.00 

3.60 

1.00 

3.60 

1.50 

3.00 

.54 

3.00 


.54 
1.08 

3.00 

.75 

3.60 

1.25 


Acts  impos- 
ing tax. 


July    13,1866 

do 

do 

Mar.     2, 1867 
July   20,1868 

do 

do 

Mar.     3, 1875 

do 

do 

Mar.     3, 1883 


..do. 
..do. 


July    24,1897 

....do 

do 

....do 

June  13,1898 

....do 

....do 

....do 

Mar.     2, 1901 

....do 

Apr.    12,1902 

Mar.     2, 1901 
....do 

Aug.     5, 1909 

....do 

....do 

....do 


Acts  repeal- 
ing tax. 


Mar.     2, 1867 

....do 

do 


July   20, 
Mar.     3, 

do.  . 

do... 

Mar.     3, 

do... 

do... 

June  13, 

July   24, 
June  13, 


1868 
1875 


L883 


Length 
of  time 

rates 
were  in 

force. 


1898 

1897 

1898 


1901 

1898 


....do... 
Mar.  2, 
June  13, 

....do 

Mar.     2, 1901 

do 

Apr.  12, 
Mar.     2, 


1902 
1901 


Aug.    5, 1909 
....do 


..do  ... 
..do.... 


Months. 
7 

7 
7 

17 
79 

79 

79 
98 

98 

98 

183 

172 
183 

10 

47 

10 

10 

37 

37 

49 

37 


108 
96 


10S 
108 


1  And  20  per  cent. 

The  act  of  July  1,  1862,  went  into  operation  September  1,  1862. 

The  act  of  July  20,  1868,  first  required  payment  of  tax  on  cigars 
by  stamps. 

Assessment  of  tax  on  cigars  removed  without  stamps.  (Sec. 
3371,  p.  268.) 

Authority  of  commissioner  to  examine  returns  of  cigar  manu- 
facturers and  to  treat  deficiency  in  product  based  on  the  return 
of  one  thousand  cigars  for  every  25  pounds  of  tobacco  as  prima 
facie  evidence  of  nonpayment  of  taxes.  (See  note  under  sec. 
3371,  p.  268.) 

Section  3362,  amended,  provides  that  fine-cut  shorts,  the 
refuse  of  fine-cut  chewing  tobacco,  refuse  scraps,  clippings,  cut- 
tings, and  sweepings  of  tobacco  may  be  sold  in  bulk  as  material 
and  without  the  payment  of  tax,  by  one  manufacturer  directly 
to  another  manufacturer,  or  for  export,  under  such  restrictions, 


CIGARS.  285 

rules,  and  regulations  as  the  Commissioner  of  Internal  Revenue 
may  prescribe.  This  relates  to  cigar  manufacturers  as  well  as 
manufacturers  of  tobacco. 

As  to  reimportation  of  articles  exported  in  bond  or  with  draw- 
back (see  sec.  26,  act  Aug.  5,  1909,  p.  337.) 

Summary  of  sections  of  the  act  of  August  5,  1909,  effective 
July  1,  1910.     (T.  D.  1602.) 

Increased  rates  of  taxation  under  said  act.  (T.  D.  1622;  T.  D. 
1629.) 

Sec.  3395.  The    Commissioner    of    Internal    Revenue    st ™ps,  how 
shall  cause  to  be  prepared,  for  payment  of  the  tax  upon  nisned,  ami  ae- 
cigars,  suitable  stamps  denoting  the  tax  thereon.     Such counted  for- 
stamps  shall  be  furnished  to  collectors  requiring  them, 
and  collectors  shall,  if  there  be  any  cigar-manufacturers 
within   their  respective   districts,    keep   on  hand   at   all 
times  a  supply  eqtial  in  amount  to  two  months'  sales 
thereof,  and  snail  sell  the  same  only  to  the  cigar-manu- 
facturers who  have  given  bonds  and  paid  the  special  tax, 
as  required  by  law,  in  their  districts,  respectively,  and  to 
importers  of  cigars,  who  are  required  to  affix  the  same  to 
imported  cigars  in  the  custody  of  customs  officers,  and 
to  persons  required  by  law  to  affix  the  same  to  cigars  on 
hand  after  the  first  day  of  April,  eighteen  hundred  and 
sixty-nine.     Every  collector  shall  keep  an  account  of  the    Record  47. 
number,  amount,  and  denominate  values  of  the  stamps 
sold  by  him  to  each  cigar-manufacturer,   and  to  other 
persons  above  described. 

See  sections  3445  and  3446  as  amended  (pp.  354,  355,)  as  to  au- 
thority to  prescribe  how  stamps  shall  be  attached,  canceled,  etc. 

See,  also,  section  3369,  page  267. 

Porto  Rico.  An  act  to  provide  means  for  the  sale  of  internal- 
revenue  stamps  in  the  island  of  Porto  Rico,  approved  June  29, 
1906.     (Seep.  374.) 

Sale  of  internal-revenue  stamps  in  the  island  of  Porto  Rico, 
Circular  No.  679,  dated  July  25,  1906  (T.  D.  1031). 

Sale  of  stamps  to  a  sheriff  or  constable.  (25  Int.  Rev.  Rec. 
21.) 

Sec.  3396.  The    Commissioner    of    Internal    Revenue    Regulations 

.,  1  ,     ..  „  ,,  ..  o  authorized. 

may  prescribe  such  regulations  for  the  inspection  ot 
cigars,  cheroots,  and  cigarettes,  and  the  collection  of  the 
tax  thereon,  as  he  may  deem  most  effective  for  the  pre- 
vention of  frauds  in  the  payment  of  such  tax. 

The  commissioner  has  authority  to  prescribe  regulations  for 
the  inspection  of  cigars  and  the  collection  of  the  tax  thereon. 
(Ludloff  v.  United  States,  108  U.  S.,  176.) 

Sec.  3397  [,  as  amended  by  sec.  16,  act  of  Mar.  1,  1879    Removal  with- 
{20  Stat.,  327)'].     Whenever  any  cigars  are  removed  from fng.^toptag^or 
any  manufactory,  or  place  where  cigars  are  made,  without  branding, 
being  packed  in  boxes  as  required  by  the  provisions  of  this 
chapter,  or  without  the  proper  stamp  thereon  denoting 
the   tax,   or  without  stamping,   indenting,   burning,   or 
impressing  into  each  box,  in  a  legible  and  durable  manner, 
the  number  of  the  cigars  contained  therein,  the  number  of 
the  manufactory,  and  the  number  of  the  district  and  the 
State,  or  without  properly  affixing  thereon  and  canceling 
the  stamp  denoting  the  tax  on  the  same,  or  are  sold,  or 


286  CIGARS. 

offered  for  sale,  not  properly  boxed  and  stamped,  they 
penalty.         shall  be  forfeited  to  the  United  States.     And  every  person 
who  commits  any  of  the  above-described  offenses  snail  be 
fined  for  each  such  offense  not  less  than  one  hundred 
dollars  nor  more  than  one  thousand  dollars,  and  impris- 
oned not  less  than  six  months  nor  more  than  two  years. 
ipnYSorSimifaUuon     ^nd  eveiT  person  who  packs  cigars  in  any  box  bearing 
stamps.1"        na  false  or  fraudulent  or  counterfeit  stamp,  or  who  affixes 
to  any  box  containing  cigars  a  stamp  in  the  similitude 
or  likeness  of  any  stamp  required  to  be  used  by  the  laws 
of  the  United  States,  whether  the  same  be  a  customs  or 
internal-revenue  stamp,  or  who  buys,  receives,  or  has  in 
his  possession  any  cigars  on  which  the  tax  to  which  they 
arc  liable  has  not  been  paid,  or  who  removes,  or  causes  to 
be  removed,  from  any  box  any  stamp  denoting  the  tax 
on  cigars,  with  intent  to  use  the  same,  or  who  uses,  or 
permits  any  other  person  to  use,  any  stamp  so  removed, 
or  who  receives,  buys,  sells,  gives  away,  or  has  in  his 
possession  any  stamp  so  removed,   or  who  makes  any 
other  fraudulent  use  of  any  stamp  intended  for  cigars,  or 
who  removes  from  the  place  of  manufacture  any  cigars 
not  property  boxed   and  stamped   as   required  by  law, 
Penalty.         shall  be  deemed  guilty  of  a  felony,  and  shall  be  fined  not 
less  than  one  hundred  dollars  nor  more  than  one  thousand 
dollars,  and  imprisoned  not  less  than  six  months  nor  more 
than  three  years. 
forCelarort packed     Provided,  That  cigars  packed  expressly  for  export,  and 
which  shall  be  exported  to  a  foreign  country  under  the 
restrictions  and  regulations  prescribed  by  the  Commis- 
sioner of  Internal  Revenue,  and  approved  by  the  Secre- 
tary of  the  Treasury,  shall  be  exempt  from  the  provisions 
of  this  section,  and  also  from  the  provisions  of  section 
thirty- three  hundred   and  ninety- three  of   the  Revised 
Statutes,  requiring  a  label  to  be  affixed  to  each  box. 

See  section  3445,  page  354,  relative  to  canceling  stamps. 

Affixing  to  a  box  containing  domestic  cigars  a  stamp  in  the 
similitude  of  a  customs  stamp  is  an  indictable  offense,  and  it  is 
not  necessary  in  the  indictment  to  aver  an  intent  to  defraud  the 
United  States.  (United  States  v.  Jacoby,  12  Blatchf.  491,  Fed. 
Cas.  No.  15462.)  ' 

Where  a  sheriff  or  constable  removes  cigars  from  a  cigar  fac- 
tory without  the  same  being  properly  boxed  and  stamped,  and 
sells  the  same  unstamped,  he  is  liable  to  the  penalty  prescribed. 
(1899,  No.  21167.) 

Stamps  on  boxes  of  cigars  must  be  properly  affixed  and  can- 
celed to  avoid  liability  to  seizure.     (T.  D.  (1899)  No.  19063.) 

Cigars  removed  from  factory  without  stamping  into  each  box 
the  number  of  the  manufactory  and  the  number  of  the  district 
and  State;  the  natural  inference  is  that  the  cigars  were  removed 
from  the  factory  in  the  condition  in  which  they  were  found. 
(Jackson  v.  U.  S.,  21  Fed.  Rep.,  35;  30  Int.  Rev.  Rec,  279.) 

U.  S.  v.  Woolheim,  11  Int.  Rev.  Rec,  78.  Fed.  Cas.  No.  16761. 

Boxes  of  cigars  in  the  hands  of  innocent  purchasers  upon 
which  the  number  of  the  factory  had  not  been  impressed  for- 
feitable.    (U.  S.  r.  76,  125  Cigars,  18  Fed.  Rep.,  147.) 

sta^r evidence'  ^ec.  3398.  The  absence  of  the  proper  revenue-stamp 
ofamnonpayment  on  any  box  of  cigars  sold,  or  offered  for  sale,  or  kept  for 
oftax"  sale,  shall  be  notice  to  all  persons  that  the  tax  has  not 


CIGARS.  287 

been  paid  thereon,  and  shall  be  prima-facie  evidence  of 
the  nonpayment  thereof,  and  such  cigars  shall  be  for- 
feited to  the  United  States. 

See  section  3376,  page  270,  (T.  D.  1296.) 

Sec.  3399.  Whenever  cigars  of  any  description  are  man-fa(2f^re!M£n 
ufactured,  in  whole  or  in  part,  upon  commission  or  shares, ^^  c^"^s{' 
or  the  material  is  furnished  by  one  party  and  manufac- how  stamped?1 
tured  by  another,  or  the  material  is  furnished  or  sold  by 
one    party   with    an   understanding   or   agreement   with 
another  that  the  cigars  are  to  be  received  in  payment    , 
therefor,  or  for  any  part  thereof,  the  stamps  required  by 
law  shall  be  affixed  by  the  actual  maker  before  the  cigars 
are  removed  from  the  place  of  manufacturing.     And  in   Fraud,  penalty, 
case  of  fraud  on  the  part  of  either  of  said  parties  in  respect 
to  said  manufacture,  or  of  any  collusion  on  their  part  with 
intent  to  defraud  the  revenue,  such  material  and  cigars 
shall  be  forfeited  to  the  United  States;   and  every  person 
engaged  in  such  fraud  or  collusion  shall  be  fined  not  less 
than  one  hundred  dollars  nor  more  than  five  thousand 
dollars,  and  imprisoned  for  not  less  than  six  months  nor 
more  than  three  years. 

Sec.  3400.  Every  manufacturer  of  cigars  who  removes  J^gJ:^  se{J.f 
or  sells  anv  cigars  without  payment  of  the  special  tax  as  aing,  etc.,  contra- 

-1  p    °,  •,!         ^  1         •  •         Ai  i  i     rv  to  law,  using 

cigar  manufacturer,  or  without  having  given  bond  as  such,  fo,ise  stamps,  etc. 
or  without  the  proper  stamps  denoting  the  tax  thereon; 
or  who  makes  false  or  fraudulent  entries  of  the  manufac- 
ture or  sale  of  any  cigars;  or  makes  false  or  fraudulent 
entries  of  the  purchase  or  sale  of  leaf-tobacco,  tobacco- 
stems,  or  other  material  used  in  the  manufacture  of  cigars; 
or  who  affixes  any  false,  forged,  spurious,  fraudulent,  or 
counterfeit  stamp,  or  imitation  of  any  stamp,  required  by 
law  to  any  box  containing  any  cigars,  shall,  in  addition  to 
the  penalties  elsewhere  provided  in  this  Title  for  such 
offenses,  forfeit  to  the  United  States  all  raw  material  and 
manufactured  or  partly  manufactured  tobacco  and  cigars, 
and  all  machinery,  tools,  implements,  apparatus,  fixtures, 
boxes,  barrels,  and  all  other  materials  which  shall  be  found 
in  his  possession,  or  in  his  manufactory,  and  used  in  his 
business  as  such  manufacturer,  together  with  his  estate  or 
interest  in  the  building  or  factory,  and  the  lot  or  tract  of 
ground  on  which  such  building  or  factory  is  located,  and 
all  appurtenances  thereunto  belonging. 

See  sections  3708  Revised  Statutes,  5413,  page  420,  and  5430, 
Revised  Statutes. 

Machines  used  in  violation  of  law,  although  leased  from  a  third 
person  ignorant  of  such  violation,  are  subject  to  forefeiture. 
The  owner  is  held  to  have  acted  with  the  knowledge  that  the 
property  would  be  subject  to  forfeiture  if  the  business  was 
unlawfullv  conducted,  and  to  have  taken  the  risk.  (U.  S.  v. 
220  Patented  Machines,  99  Fed.,  559;.  T.  D.  54.) 

Sec.  3401.     (Obsolete.)     Falsely  representing  cigars  to 
have  been  made  prior  to  July  20,  1868. 

Sec.  3402.  All  cigars  imported  from  foreign  countries  imported id- 
shall  pay,  in  addition  to  the  import  duties  imposed  thereon,  fttmps.when  and 
the  tax  prescribed  by  law  for  cigars  manufactured  in  the  by  wllom  affixed- 


288  CIGARS. 

United  States,  and  shall  have  the  same  stamps  affixed. 
The  stamps  shall  be  affixed  and  canceled  by  the  owner  or 
importer  of  the  cigars  while  they  are  in  the  custody  of  the 
proper  custom-house  officers,  and  the  cigars  shall  not  pass 
out  of  the  custody  of  such  officers  until  the  stamps  have 
been  so  affixed  and  canceled,  but  shall  be  put  up  in  boxes 
containing  quantities  as  prescribed  in  this  chapter  for 
cigars  manufactured  in  the  United  States,  before  the 
stamps  are  affixed.  And  the  owner  or  importer  of  such 
cigars  shall  be  liable  to  all  the  penal  provisions  of  this 
Title  prescribed  for  manufacturers  of  cigars  manufactured 
in  the  United  States.  Whenever  it  is  necessary  to  take 
any  cigars  so  imported  to  any  place  other  than  the  public 
stores  of  the  United  States,  for  the  purpose  of  affixing  and 
canceling  such  stamps,  the  collector  of  customs  of  the  port 
where  such  cigars  are  entered  shall  designate  a  bonded 
warehouse  to  which  they  shall  be  taken,  under  the  control 
of  such  customs  officer  as  such  collector  may  direct.  And 
every  officer  of  customs  who  permits  any  such  cigars  to 
pass  out  of  his  custody  or  control,  without  compliance  by 
the  owner  or  importer  thereof  with  the  provisions  of  this 
section  relating  thereto,  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  shall  be  fined  not  less  than  one  thousand 
dollars  nor  more  than  five  thousand  dollars,  and  impris- 
oned not  less  than  six  months  nor  more  than  three  years. 

Relative  to  packing  and  stamping  imported  cigars : 

Sec.  2804,  amended  act  of  Aug.  28,  1894,  Sec.  26.  No  cigars 
shall  be  imported  unless  the  same  are  packed  in  boxes  of  not 
more  than  five  hundred  cigars  in  each  box;  and  no  entry  of 
any  imported  cigars  shall  be  allowed  of  less  quantity  than  three 
thousand  in  a  single  package;  and  all  cigars  on  importation  shall 
be  placed  in  public  store  or  bonded  warehouse,  and  shall  not 
be  removed  therefrom  until  the  same  shall  have  been  inspected 
and  a  stamp  affixed  to  each  box  indicating  such  inspection,  and 
also  a  serial  number  to  be  recorded  in  the  custom  house.  And 
the  Secretary  of  the  Treasury  is  hereby  authorized  to  provide  the 
requisite  stamps,  and  to  make  all  necessary  regulations  for  car- 
rying the  above  provisions  of  law  into  effect. 

As  to  imported  cigarettes,  see  section  3392  as  amended,  page  281 . 

As  to  exportation  of  cigars,  see  under  tobacco,  section  3385, 
page  273. 

As  to  drawback  on  cigars.     (Sec.  3386,  p.  276.) 

Instructions  for  stamping  domestic  cigars  reimported.  (Regu- 
lations No.  8,  p.  65.) 

Cigars  imported  from  the  Philippines  are  not  imported  from  a 
foreign  country.     (24  Op.  Atty.  Gen.,  120.) 

Section  3377  as  amended  provides,  "That  scraps,  cuttings,  and 
clippings  of  tobacco  imported  from  any  foreign  country  may, 
after  the  proper  customs  duty  has  been  paid  thereon,  be  with- 
drawn in  bulk  without  the  payment  of  the  internal-revenue  tax, 
and  transferred  as  material  directly  to  the  factory  of  a  manu- 
facturer of  tobacco  or  snuff,  or  of  a  cigar  manufacturer,  under 
such  restrictions  and  regulations  as  shall  be  prescribed  by  the 
Commissioner  of  Internal  Revenue  and  approved  by  the  Secre- 
tary of  the  Treasury." 

afterg TpTnT*,     ^ec.  3403.  All  cigars  of  every  description,  on  hand  after 
1869.  "  'the  first  day  of  April,  eighteen  hundred  and  sixty-nine, 

shall  be  taken  to  have  been  either  manufactured  or  im- 
ported after  the  passage  of  the  internal-revenue  act  of 


CIGARS.  289 

July  twentieth,  eighteen  hundred  and  sixty-eight,  and 
t  shall  be  stamped  accordingly. 

Every  person  who  sells  or  offers  for  sale  any  imported    selling  import- 
cigars,  or  cigars  purporting  or  claimed  to  have  been  im-pacCk§drSan0d 
ported,  not  put  up  in  packages  and  stamped  as  provided  ^•"e^edbyas  iaw: 
by  this  chapter,  shall  be  fined  not  less  than  five  nundred  penalty, 
dollars  nor  more  than  five  thousand  dollars,  and  be  im- 
prisoned not  less  than  six  months  nor  more  than  two  years. 

Sec.  3404.  Every  person  who  purchases  or  receives  for    Purchasing  ci- 
sale  any  cigars  which  have  not  been  branded  or  stamped  orslampedTpm^ 
according  to  law,  shall  be  liable  to  a  penalty  of  fifty  dollars  alty- 
for  each  such  offense. 

Dealers,  as  well  as  manufacturers,  are  liable  for  selling  or 
offering  for  sale  cigars  not  properly  boxed  and  stamped.  (U.  S. 
v.  Edwards,  17  Int.  Rev.  Rec,  126;  Fed.  Cas.  No.  15025;  U.  S.  v. 
Mena,  29  Int.  Rev.  Rec,  190.) 

Sec.  [3405.]  Obsolete.     Relative  to  purchasing  cigars 
from  manufacturers  who  have  not  paid  special  tax. 

Sec.    3406.  Whenever    any    stamped    box    containing  emp^ed^lgari 
cigars,  cheroots,  or  cigarettes,  is  emptied,  it  shall  be  theboxes  *°  be  de- 
duty  of  the  person  in  whose  hands  the  same  is  to  destroy  for°negiec£etc.  y 
utterly  the  stamps  thereon.     Any  person  who  willfully 
neglects  or  refuses  so  to  do  shall,  for  each  such  offense,  be 
fined  not  exceeding  fifty  dollars  and  imprisoned  not  less 
than  ten  days  nor  more  than  six  months.     And  any  per- 
son who  fraudulently  gives  away  or  accepts  from  another, 
or  who  sells,  buys,  or  uses  for  packing  cigars,  cheroots,  or 
cigarettes,  any  such  stamped  box,  shall  for  each  such 
offense  be  fined  not  exceeding  one  hundred  dollars  and  be 
imprisoned  not  more  than  one  year.     Any  revenue  officer    Destruction  of 

1        i  ,•    j      •  r  i  »   a  •  emptied  stamped 

may  destroy  any  emptied  cigar-box  upon  which  a  cigar- cigar  box. 
stamp  is  found. 

Section  3315,  as  amended  by  section  5,  act  March  1, 1879,  page 
209,  provides  for  restamping  packages  of  cigars  and  cigarettes 
which  have  been  duly  stamped  but  from  which  the  stamps  have 
been  lost  or  destroyed  by  unavoidable  accident. 

As  to  the  Philippines  (See  p.  377). 

72170°— 11— 19 


Chapter  Eight. 
OPIUM. 


[Act  of  Oct.  1,  1890  (26  Stat.,  567).] 


Sec. 

39.  Laws  relating  to  stamps  in  case  of 
manufactured  tobacco  and  snuff 
to  apply  to  the  manufacture  of 
opium  for  smoking  purposes  as 
far  as  applicable. 

40  (as  amended).  Penalty  of  not  more 
than  one  thousand  dollars  and 
imprisonment  of  not  more  than 
one  year  for  each  and  every 
violation  of  law.  All  prepared 
smoking  opium  not  stamped  to 
be  forfeited. 


Sec. 

36.  Tax  on  opium  manufactured  in  the 

United  States  for  smoking  pur- 
poses, ten  dollars  per  pound. 

37.  Manufacturer  shall  file  notices,  inven- 

tories, and  bonds,  keep  books  and 
render  returns,  put  up  signs  and 
affix  factory  number,  and  conduct 
his  business  under  such  regula- 
tions as  may  be  prescribed. 

38.  Prepared    smoking   opium   imported 

into  the  United  States  to  be 
stamped  before  removal  from 
custom-house.  Opium  manu- 
factured in  the  United  States  for 
smoking  purposes  to  be  stamped 
before  removal  from  place  of 
manufacture. 

Tax  on  opium     gECp  36#  [^ct  0f  Oct.  1,  1890  {26  Stat,  567).]    That  an 

manufactured.  .  L  -/  .  '  .    „  i       i      n    i 

for  smoking  imr- internal-revenue  tax  or  ten  dollars  per  pound  shall  be 
poses..  levied  and  collected  upon  all  opium  manufactured  in  the 

United  States  for  smoking  purposes;  and  no  person  shall 
engage  in  such  manufacture  who  is  not  a  citizen  of  the 
United  States  and  who  has  not  given  the  bond  required 
by  the  Commissioner  of  Internal  Revenue. 
Manufacturer's  Sec.  37.  That  every  manufacturer  of  such  opium  shall 
toriesf' bo'" defile  with  the  collector  of  internal  revenue  of  the  district  in 
andksi'gnsretnrns'  which  his  manufactory  is  located  such  notices,  inventories, 
and  bonds,  shall  keep  such  books  and  render  such  returns 
of  material  and  products,  shall  put  up  such  signs  and  affix 
such  number  to  his  factory,  and  conduct  his  business  under 
such  surveillance  of  officers  and  agents  as  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury,  may,  by  regulation,  require.  But 
the  bond  required  of  such  manufacturer  shall  be  with  sure- 
ties satisfactory  to  the  collector  of  internal  revenue  and 
of  in  a  penal  sum  of  not  less  than  five  thousand  dollars;  and 
the  sum  of  said  bond  may  be  increased  from  time  to  time 
and  additional  sureties  required  at  the  discretion  of  the 
collector  or  under  instructions  of  the  Commissioner  of 
Internal  Revenue. 

Sec.  38.  That  all  prepared  smoking  opium  imported 
into  the  United  States  shall,  before  removal  from  the  cus- 
tom-house, be  duly  stamped  in  such  manner  as  to  denota 
that  the  duty  thereon  has  been  paid;  and  that  all  opium 
manufactured  in  the  United  States  for  smoking  purposes, 
before  being  removed  from  the  place  of  manufacture, 
whether  for  consumption  or  storage,  shall  be  duly  stamped 

290 


Penal 
bond. 


sum 


Stamps. 


opium.  291 

in  such  permanent  manner  as  to  denote  the  payment  of  the 
internal-revenue  tax  thereon. 

Sec.  39.  That  the  provisions  of  existing  laws  governing  32f|c*l4°4^s34^69' 
the  engraving,  issue,  sale,  accountability,  effacement,  can- 
cellation, and  destruction  of  stamps  relating  to  tobacco 
and  snuff,  as  far  as  applicable  are  hereby  made  to  apply  to 
stamps  provided  for  by  the  preceding  section. 

See  sections  3369,  page  267;  3218,  page  113;  3445  and  3446, 
page  354, 355. 

Sec.  40  [as  amended  by  the  act  of  Mar.  3,  1897  (29  Stat,    Penalty- 
228).]  That  a  penalty  of  not  more  than  one  thousand 
dollars,  or  imprisonment  not  more  than  one  year,  or  both, 
in  the  discretion  of  the  court  shall  be  imposed  for  each 
and  every  violation  of  the  preceding  sections  of  this  act 
relating  to  opium  by  any  person  or  persons;  and  all  pre- 
pared smoking  opium  wherever  found  within  the  United 
States  without  stamps  required  by  this  act  shall  be  for-    Pursiiailt     t0 
feited,  and  may  be  sold,  to  the  highest  bidder,  pursuant  to  the  provisions  of  sec. 
'provisions  of  section  thirty-four  hundred  and  sixty,  Revised 
Statutes,  if  not  valued  as  therein  provided  at  over  five  hundred 
dollars;  but   if  valued  at  more  than  five  hundred  dollars    sale. 
the  sale  shall  be  made  pursuant  to  the  judgment  of  the  court 
in  the  proceedings  for  condemnation  or  forfeiture. 

AN  ACT  To  prohibit  the  importation  and  use  of  opium  for 
other  than  medicinal  purposes, 

That  after  the  first  day  of  April,  nineteen  hundred  and  nine, 
it  shall  be  unlawful  to  import  into  the  United  States  opium  in 
any  form  or  any  preparation  or  derivative  thereof:  Provided, 
That  opium  and  preparations  and  derivatives  thereof,  other  than 
smoking  opium  or  opium  prepared  for  smoking,  may  be  imported 
for  medicinal  purposes  only,  under  regulations  which  the  Secre- 
tary of  the  Treasury  is  hereby  authorized  to  prescribe,  and  when 
so  imported  shall  be  subject  to  the  duties  which  are  now  or  may 
hereafter  be  imposed  by  law. 

Sec.  2.  That  if  any  person  shall  fraudulently  or  knowingly 
import  or  bring  into  the  United  States,  or  assist  in  so  doing,  any 
opium  or  any  preparation  or  derivative  thereof  contrary  to  law, 
or  shall  receive,  conceal,  buy,  sell,  or  in  any  manner  facilitate 
the  transportation,  concealment,  or  sale  of  such  opium  or  prep- 
aration or  derivative  thereof  after  importation,  knowing  the  same 
to  have  been  imported  contrary  to  law,  such  opium  or  preparation 
or  derivative  thereof  shall  be  forfeited  and  shall  be  destroyed, 
and  the  offender  shall  be  fined  in  any  sum  not  exceeding  five 
thousand  dollars  nor  less  than  fifty  dollars,  or  by  imprisonment 
for  any  time  not  exceeding  two  years,  or  both.  Whenever,  on 
trial  for  a  violation  of  this  section,  the  defendant  is  shown  to  have 
or  to  have  had,  possession  of  such  opium  or  preparation  or  deriva- 
tive thereof,  such  possession  shall  be  deemed  sufficient  evidence 
to  authorize  conviction  unless  the  defendant  shall  explain  the 
possession  to  the  satisfaction  of  the  jury. 

Approved,  February  9.   1909.     (35  Stat..  614.) 
(T.   D.   No.  29657,  Mar.  27,  1909.) 


Chapter  Nine. 

OLEOMARGARINE;  ADULTERATED  BUTTER;  PROCESS  OR 

RENOVATED  BUTTER. 


[Acts  of  Aug.  2,  1886  (24  Stat.,  209),   and  Oct.  1,  1890  (26  Stat.,  621),  as  amended  by  act  of  May  9,  1902 

(32  Stat.,  193).] 


14 


Sec. 

I.  Act  May  9,  1902,  imitation  dairy  prod- 

ucts subject  to  State  laws. 
Act  Aug.  2,  1886: 

1.  Butter  defined. 

2.  Oleomargarine  defined. 

3.  (Amended.)     Special  taxes. 

4.  Penalties  for  nonpayment  of  special 

taxes. 

5.  Manufacturer's    notices,    books,    re- 

turns, bonds,  signs,  etc. 

6.  Oleomargarine,  how  to  be  packed  and 

sold;  penalty. 

7.  Manufacturer's    labels,    penalty    for 

failing  to  affix. 

8.  (Amended.)     Tax,  stamps,  laws  rela- 

tive to  stamps  for  tobacco  and 
snuff  made  to  apply. 

9.  Assessment  of  tax  on  oleomargarine 

when  removed  without  stamps. 
10.  Tax  on  imported  oleomargarine;  pen- 
alty.    Warehousing. 

II.  Penalty    for    receiving   for    sale    un- 

stamped oleomargarine. 

12.  Penalty  for  purchasing  from  a  manu- 

facturer who  has  not  paid  special 
tax;  forfeiture. 

13.  Stamps  on  empty  packages  to  be  de- 

stroyed;     penalty    for    failure; 
dealing  in  empty  stamped  pack- 


ages. 


Authority   to   employ   chemists   and 

microscopists. 
Commissioner  to  decide  in  contested 

cases;  appeal. 

15.  Forfeiture  of  unstamped  oleomarga- 

rine; penalty  for  defacing  or  re- 
moving stamps. 

16.  Oleomargarine  removed  for  export. 

17.  Carrying  on  business  as  manufacturer 

in  fraud  of  the  revenue;    penal- 
ties and  forfeitures. 


Sec. 
18. 

19. 

20. 

21. 


7. 


Penalty  for  omitting  things  required 

and  for  doing  things  forbidden. 
Courts  in  which  fines  may  be  recov- 
ered. 
Commissioner  to  make  regulations. 
Date  when  act  goes  into  effect;  stock 

on  hand. 
Act  of  May  9,  1902. 
Butter  defined. 
Adulterated  butter  defined. 
Porcess  or  renovated  butter  de- 
fined. 
Notices,  bonds. 
Inventories,  signs. 
Manufacturers'  packages. 
Dealers'  packages. 
Caution  label. 
Tax  on  adulterated  and  process 

or  renovated  butter. 
Stamps — Sections     relating     to 
stamps  for  tobacco  and  snuff 
made  applicable. 
Sections  of  act  of  August  2,  1886, 
made  applicable  to  adulterated 
butter. 
Act  May  9,  1902. 

Inspection  of  renovated  butter. 
Marking  of  process  or  renovated 

butter. 
Secretary  of  Agriculture  to  make 
regulations. 
Act  May  9,  1902,  wholesale  dealers  in 
oleomargarine,    etc.,    to    keep 
books  and  render  returns. 
Penalty. 
Act  May  9, 1902,  date  of  taking  effect. 


(Act  of  Aug.  2,  1886  (24  Stat.,  209),  as  amended  bv  acts  of  Oct.  1, 
1890  (26  Stat.,  621),  and  May  9,  1902(32  Stat.,  193),  an  act  to  make 
oleomargarine  and  other  imitation  dairy  products  subject  to  the  laws 
of  any  State  or  Territory,  or  the  District  of  Columbia,  into  which  they 
are  transported,  and  to  change  the  tax  on  oleomargarine,  and  to 
impose  a  tax,  provide  for  the  inspection,  and  regulate  the  manufac- 
ture and  sale  of  certain  dairy  products,  and  to  amend  an  act  entitled 
"An  act  defining  butter,  also  imposing  a  tax  upon  and  regulating 
the  manufacture,  sale,  importation,  and  exportation  of  oleomarga- 
rine," approved  Aug.  2,  1886.) 


292 


OLEOMARGARINE.  293 

Sec.  1  [act  of  May  9,  1902  {32  Stat.,  193)1  That  all  p™SSX JjS 
articles  known  as  oleomargarine,  butterine,  imitation,  to  state  laws. 
process,  renovated,  or  adulterated  butter,  or  imitation 
cheese,  or  any  substance  in  the  semblance  of  butter  or 
cheese  not  the  usual  product  of  the  dairy  and  not  made 
exclusively  of  pure  and  unadulterated  milk  or  cream, 
transported  into  any  State  or  Territory  or  the  District  of 
Columbia,  and  remaining  therein  for  use,  consumption, 
sale,  or  storage  therein  shall,  upon  the  arrival  within 
the  limits  of  such  State  or  Territory  or  the  District  of 
Columbia,  be  subject  to  the  operation  and  effect  of  the 
laws  of  such  State  or  Territory  or  the  District  of  Columbia, 
enacted  in  the  exercise  of  its  police  powers  to  the  same 
extent  and  in  the  same  manner  as  though  such  articles  or 
substances  had  been  produced  in  such  State  or  Territory 
or  the  District  of  Columbia,  and  shall  not  be  exempt  there- 
from by  reason  of  being  introduced  therein  in  original 
packages  or  otherwise. 

Sec.  1  [act.  of  Aug.  2,  1886  (24  Stat,  209)].  That  forJKg"'  defini" 
the  purpose  of  this  act  the  word  "butter"  shall  be  under- 
stood to  mean  the  food  product  usually  known  as  butter, 
and  which  is  made  exclusively  from  milk  or  cream,  or 
both,  with  or  without  common  salt,  and  with  or  without 
additional  coloring  matter. 

See  section  4,  act  May  9,  1902,  defining  "butter,"  also  "Adul- 
terated butter,"  and  "Process  or  renovated  butter,"  page  300. 

Sec.  2  [act  of  Aug.  2, 1886  (24  Stat.,  209)].  That  for  the^'^^g^ 
purposes  of  this  act  certain  manufactured  substances, 
certain  extracts,  and  certain  mixtures  and  compounds, 
including  such  mixtures  and  compounds  with  butter, 
shall  be  known  and  designated  as  "oleomargarine," 
namely:  All  substances  heretofore  known  as  oleomar- 
garine, oleo,  oleomargarine-oil,  butterine,  lardine,  suine, 
and  neutral;  all  mixtures  and  compounds  of  oleo- 
margarine, oleo,  oleomargarine-oil,  butterine,  lardine, 
suine,  and  neutral;  all  lard  extracts  and  tallow  extracts; 
and  all  mixtures  and  compounds  of  tallow,  beef-fat,  suet, 
lard,  lard-oil,  vegetable  oil,  annotto,  and  other  coloring 
matter,  intestinal  fat,  and  offal  fat  made  in  imitation  or 
semblance  of  butter,  or  when  so  made,  calculated  or 
intended  to  be  sold  as  butter  or  for  butter. 

Interpretation  of  definition.  (18  Op.  Atty.  Gen.  489;  32  Int. 
Rev.  Rec,  333.) 

Addition  of  foreign  fat,  lard,  or  oil  to  butter  produces  oleo- 
margarine. (33  Int.  Rev.  Rec,  397;  Regulations  No.  9,  pp. 
24,  88.)  _ 

Taxability  of  mixtures  or  compounds  of  animal  or  vegetable 
oils  or  fats.     (T.  D.  1354,  May  12,  1908.) 

Sec.  3  [act  of  Aug.  2,  1886],  as  amended  by  section  2 
of  the  act  of  May  9,  1902,  imposing  special  taxes  on 
manufacturers  and  dealers  will  be  found  under  chapter  3, 
"Special  taxes,"  section  3242&,  page  131. 

Sec.  4  [act  of  Aug.  2,  1886  (21  Stat.,  209)].  That  every    Penalty  for  vio- 

1  ,   •  ,.    ii .       i  e  r  s  lation   by   manu- 

person  who  carries  on  the  business  ol  a  manuiacturer  ol  facturer. 
oleomargarine  without  having  paid  the  special  tax  there- 


294  OLEOMARGARINE. 

for,  as  required  by  law,  shall,  besides  being  liable  to  the 
payment  of  the  tax,  be  fined  not  less  than  one  thousand 
and  not  more  than  five  thousand  dollars;  and  every  per- 
son who  carries  on  the  business  of  a  wholesale  dealer  in 
oleomargarine  without  having  paid  the  special  tax  there- 
for, as  required  by  law,  shall,  besides  being  liable  to  the 
payment  of  the  tax,  be  fined  not  less  than  five  hundred 
nor  more  than  two  thousand  dollars;  and  every  person 
who  carries  on  the  business  of  a  retail  dealer  in  oleomar- 
garine without  having  paid  the  special  tax  therefor,  as 
required  by  law,  shall,  besides  being  liable  to  the  pay- 
ment of  the  tax,  be  fined  not  less  than  fifty  nor  more  than 
five  hundred  dollars  for  each  and  every  offense. 

Penalty  for  failure  to  pay  special  tax.  (U.  S.  v.  Joyce,  138 
Fed.  Rep.,  455;  Morris  v.  U.  S.,  161  Fed.  Rep.,  672;  Hartman 
etal.-y.  U.  S.,  168  Fed.  Rep.,  30,  T.  D.  1468;  Vermont  v.  U.  S., 
174  Fed.  Rep.,  792;  T.  D.  1579;  U.  S.  v.  Shipley  et  al.,  T.  D. 
1504;  Enders  v.  U.  S.,  T.  D.  1669.) 

Manufacturers'  Sec.  5  [act  of  Aug.  2,  1886  (24  Stat.,  210)].  That  every 
tor  if  s,  "Vgns  manufacturer  of  oleomargarine  shall  file  with  the  col- 
books,  bonds, etc.  \GC,^0T  of  internal  revenue  of  the  district  in  which  his 
manufactory  is  located  such  notices,  inventories,  and 
bonds,  shall  keep  such  books  and  render  such  returns  of 
material  and  products,  shall  put  up  such  signs  and  affix 
such  number  to  his  factory,  and  conduct  his  business 
under  such  surveillance  of  officers  and  agents  as  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  may,  by  regulation, 
require.  But  the  bond  required  of  such  manufacturer 
shall  be  with  sureties  satisfactory  to  the  collector  of 
internal  revenue,  and  in  a  penal  sum  of  not  less  than  five 
thousand  dollars;  and  the  sum  of  said  bond  may  be 
increased  from  time  to  time  and  additional  sureties 
required  at  the  discretion  of  the  collector,  or  under  instruc- 
tions of  the  Commissioner  of  Internal  Revenue. 

Regulations  No.  9,  T.  D.  797,  June  6,  1904;  T.  D.  906,  June 
20,  1905;  and  T.  D.  1652,  August  29,  1910. 

Power  of  attorney  by  manufacturers  to  agents  to  render 
returns.     (T.  D.  1263.) 

Manufacturers-     Sec.  6  [act  of  Aug.  2,  1886  (24  Stat.,  210)].     That  all 
original  packages.  0jeomar^arme    ^mll    be    packed    by    the  manufacturer 

thereof  in  firkins,  tubs,  or  other  wooden  'packages  not 
before  used  for  that  purpose,  each  containing  not  less 
than  ten  pounds,  and  marked,  stamped,  and  branded  as 
the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  shall  prescribe;  and 
all  sales  made  by  manufacturers  of  oleomargarine,  and 
wholesale  dealers  in  oleomargarine  shall  be  in  original 
Retail  dealers' stamped  packages.  Retail  dealers  in  oleomargarine  must 
packages.  gejj  onjy  from  original  stamped  packages,  in  quantities 

not  exceeding  ten  pounds,  and  shall  pack  the  oleomarga- 
rine sold  by  them  in  suitable  wooden  or  paper  packages 
which  shall  be  marked  and  branded  as  the  Commissioner 
of  Internal  Revenue,  with  the  approval  of  the  Secretary 


OLEOMARGARINE.  295 

of  the  Treasury,  shall  prescribe.  Every  person  who 
knowingly  sells  or  offers  lor  sale,  or  delivers  or  offers  to 
deliver,  any  oleomargarine  in  any  other  form  than  in  new 
wooden  or  paper  packages  as  above  described,  or  who 
packs  in  any  package  any  oleomargarine  in  any  manner 
contrary  to  law,  or  who  falsely  brands  any  package  or 
affixes  a  stamp  on  any  package  denoting  a  less  amount  of 
tax  than  that  required  by  law  shall  be  fined  for  each  Penalties. 
offense  not  more  than  one  thousand  dollars,  and  be 
imprisoned  not  more  than  two  years. 

Original  packages,  no  objection  to  using  old  boxes  for  ma- 
terial for  new  packages.     (32  Int.  Rev.  Rec,  405.) 

Waxed  cartons  or  containers  for  packing  oleomargarine  inside 
original  packages  permissible.  (T.  D.  1323,  Feb.  24,  1908, 
and  T.  D.  1563,  Nov.  11,  1909.) 

Crates  made  of  wooden  slats  for  holding  waxed  or  enameled 
cardboard  cartons  within  definition  of  "wooden  packages"  as 
original  packages  for  oleomargarine.     (T.  D.  1613,  Apr.  8,  1910.) 

Power  of  commissioner  to  make  regulations  as  to  marks  and 
brands  on  packages  of  oleomargarine.  (In  re  Kollock,  165  I' .  S., 
526,  43  Int.  Rev.,  Rec.  170;  In  re  McCaully  165  U.  S.,  538. 
Pralher  v.  U.  S.,  9  Appeal  Cases  D.  C,  82;  Wilkins  v.  U.  S.,  96 
Fed.  Rep.,  837;  T.  D.  21623.) 

Retail  packages,  marks,  and  brands.  (TJ.  S.  v.  Ford,  50  Fed. 
Rep., 467,  distinguishing  U.  S.v.  Eaton,  144U.  S.,  677;  Dougherty 
v.  U.  S.,  108  Fed.  Rep.,  56  (T.  D.  335),  affirming  101  Fed. 
Rep.,  439;  U.  S.  v.  Jowe  et  al,  138  Fed.  Rep.,  457;  U.  S.  v. 
Knott,  151  Fed.  Rep.,  925;  Morris  v.  U.  S.,  161  Fed.  Rep.,  680.) 

Limit  of  10  pounds  retail  sales.  (U.  S.  v.  Ripper,  178  Fed. 
Rep.,  24;  Ripper?;.  U.  S.,  179  Fed.  Rep.,  497;  T.  D.  1609;  Goll 
V.  U.  S.,  166  Fed.  Rep.,  419.) 

A  party  is  liable  for  the  sale  by  a  clerk  or  employee  of  oleo- 
margarine without,  its  being  in  a  stamped  or  wrapped  package. 
(Prather  v.  U.  S.,  9  App.  Cases,  D.  ('..  82. ) 

Sec.  7  [act  of Aug.  2, 1886(24  Stat  210)]  That  every rfS&JSS 
manutacturer  of  oleomargarine  snail  securely  affix,  by 
pasting,  on  each  package  containing  oleomargarine  manu- 
factured by  him,  a  label  on  which  shall  be  printed,  besides 
the  number  of  the  manufactory  and  the  district  and  State 
in  which  it  is  situated,  these  words:  "Notice — The  manu- 
facturer of  the  oleomargarine  herein  contained  has  com- 
plied with  all  the  requirements  of  law.  Every  person 
is  cautioned  not  to  use  either  this  package  again  or  the 
stamp  thereon  again,  nor  to  remove  the  contents  of  this 
package  without  destroying  said  stamp,  under  the 
penalty  provided  by  law  in  such  cases."  Every  manu- 
tacturer of  oleomargarine  who  neglects  to  affix  such  label 
to  any  package  containing  oleomargarine  made  by  him, 
or  sold  or  offered  for  sale  by  or  for  him,  and  every  person 
who  removes  any  such  label  so  affixed  from  any  such 
package,  shall  be  fined  fifty  dollars  for  each  package  in 
respect  to  which  such  offense  is  committed. 

Sec.  8  [act  of  Aug.  2, 1886  (24  Stat.,  210),  as  amended  by 
sec.  3,  act  oj  May  9,  1902  (32  Stat.,  193)].  That  upon  oleo- 
margarine which  shall  be  manufactured  and  sold,  or  re- 
moved for  consumption  or  use,  there  shall  be  assessed  and 
collected  a  tax  of  ten  cents  per  pound,  to  be  paid  by  the  Tax  per  pound. 
manufacturer  thereof;  and  any  fractional  part  of  a  pound 


296  OLEOMARGARINE. 

in  a  package  shall  be  taxed  as  a  pound:  Provided,  When 
oleomargarine  is  free  from  artificial  coloration  that  causes 
it  to  look  like  butter  of  any  shade  of  yellow  said  tax  shall  be 
one-fourth  of  one  cent  per  pound.  The  tax  levied  by  this 
Tax  represent-  section  shall  be  represented  by  coupon  stamps;  and  the  pro- 
stLnp!  coupon  visions  of  existing  laws  governing  the  engraving,  issue,  sale, 
accountability,  ejfacement,  and  destruction  of  stamps  rela- 
ting to  tobacco  and  snuff,  as  far  as  applicable,  are  hereby 
made  to  apply  to  stamps  provided  for  by  this  section. 

Use  of  an  ingredient  in  minute  quantities  to  impart  yellow 
color  subjects  product  to  tax  at  rate  of  10  cents  per  pound. 
(T.  D.  564,  Aug.  11,  1902.) 

Use  of  an  ingredient  containing  artificial  coloring  which 
imparts  shade  of  yellow  makes  finished  product  taxable  at  10 
cents.     (Regulations,  No.  9.) 

Butter  artificially  colored  as  an  ingredient  in  oleomargarine 
subjects  product  to  higher  rate  of  tax.  (McCray  v.  U.  S.,  195 
U.S.,  27;  T.  D.795.) 

Palm  oil  constitutes  artificial  coloration.  (Cliff  v.  U.  S., 
195  U.  S.,  159;  T.  D.  839.) 

Palm  oil.  (Moxley  v.  Hertz,  216  U.  S.,  344;  T.  D.  1596, 
affirming  173  Fed.  Rep.,  728;  T.  D.  1168;  Moxley  v.  Hertz, 
collector,  T.  D.  1671.) 

Coloring  for  customer  after  sale.  (W.  H.  Zinn  Co.  v.  U.  S., 
T.  D.  1517.) 

Use  of  a  rubber  stamp  for  cancellation  of  tax-paid  stamps  for 
oleomargarine,  in  lieu  of  a  stencil  plate  of  brass  or  copper. 
(T.  D.  614,  Jan.  12,  1903.) 

See  chapter  under  heading  "Tobacco  and  Snuff"  for  laws 
relating  to  stamps. 

Stamps  issued  in  book  form  in  denominations  of  10,  20,  30,  40, 
50,  60,  70,  80,  90,  and  100  pounds,  and  each  book  contains  200 
stamps  and  1,800  coupons. 

oftaxwfthStwo     Sec-  9  lad  °f  Au9-  2> 1886  (®4  Stat:>  211)l  That  wnen" 
years.  ever  any  manufacturer  of  oleomargarine  sells,  or  removes 

for  sale  or  consumption,  any  oleomargarine  upon  which 
the  tax  is  required  to  be  paid  by  stamps,  without  the  use 
of  the  proper  stamps,  it  shall  be  the  duty  of  the  Commis- 
sioner of  Internal  Revenue,  within  a  period  of  not  more 
than  two  years  after  such  sale  or  removal,  upon  satisfac- 
tory proof,  to  estimate  the  amount  of  tax  which  has  been 
omitted  to  be  paid,  and  to  make  an  assessment  therefor 
and  certify  the  same  to  the  collector.  The  tax  so 
assessed  shall  be  in  addition  to  the  penalties  imposed  by 
law  for  such  sale  or  removal. 

See  Regulations  No.  1. concerning  assessments. 

poned   Sa»£   ,  Sec-  10  &*  ?f  Aug.  2,  1886  (24  Stat,  211)}.  That  all 
garine.  oleomargarine  imported  from  foreign  countries  shall,  in 

addition  to  any  import  duty  imposed  on  the  same,  pay 
an  internal  revenue  tax  of  fifteen  cents  per  pound,  such 
stamps.  tax  to  be  represented  by  coupon  stamps  as  in  the  case  of 

oleomargarine  manufactured  in  the  United  States.  The 
stamps  shall  be  affixed  and  canceled  by  the  owner  or 
importer  of  the  oleomargarine  while  it  is  in  the  custody 
of  the  proper  custom-house  officers;  and  the  oleomar- 
garine shall  not  pass  out  of  the  custody  of  said  officers 
until  the  stamps  have  been  so  affixed  and  canceled,  but 


OLEOMARGARINE.  297 

shall  be  put  up  in  wooden  packages,  each  containing  not 
less  than  ten  pounds,  as  prescribed  in  this  act  for  oleo- 
margarine manufactured  in  the  United  States,  before  the 
stamps  are  affixed;  and  the  owner  or  importer  of  such 
oleomargarine  shall  be  liable  to  all  the  penal  provisions 
of  this  act  prescribed  for  manufacturers  of  oleomargarine 
manufactured    in    the   United   States.     Whenever   it    is.  warehousing 
necessary  to  take  any  oleomargarine  so  imported  to  any  margarine.   °le°" 
place  other  than  the  public  stores  of  the  United  States  for 
the  purpose  of  affixing  and  canceling  such  stamps,  the 
collector  of  customs  of  the  port  where  such  oleomargarine 
is  entered  shall  designate  a  bonded  warehouse  to  which  it 
shall  be  taken,  under  the  control  of  such  customs  officer 
as  such  collector  may  direct ;  and  every  officer  of  customs 
who  permits  any  such  oleomargarine  to  pass  out  of  his 
custody  or  control  without  compliance  by  the  owner  or 
importer  thereof  with  the  provisions  of  this  section  relat- 
ing thereto,  shall  be  guilty  of  a  misdemeanor,  and  shall  be    Penalty  for 
fined  not  less  than  one  thousand  dollars  nor  more  than  customs  officer.by 
five  thousand  dollars,  and  imprisoned  not  less  than  six 
months  nor  more  than  three  years.     Every  person  who 
sells  or  offers  for  sale  any  imported  oleomargarine,  or 
oleomargarine  purporting  or  claimed  to  have  been  im- 
ported, not  put  up  in  packages  and  stamped  as  provided    Penaitv  for  seii- 
by  this  act,  shall  be  fined  not  less  than  five  hundred  dol-K£lproperly 
lars  nor  more  than  five  thousand  dollars,   and  be  im- 
prisoned not  less  than  six  months  nor  more  than  two  years. 

Oleomargarine  exported  free  of  tax  and  reimported  dutiable 
at  domestic  rates  remitted.     (T.  D.  669,  June  10,  1903.) 

Sec.  11  [ad  of  Aug.  2, 1886  (2A  Stat,  211).}    That  every  pi£^gty  £ 
person  who  knowingly  purchases  or  receives  for  sale  any  omargarine    not 
oleomargarine  which  has  not  been  branded  or  stamped  stamped.6  r  1  y 
according  to  law  shall  be  liable  to  a  penalty  of  fifty 
dollars  for  each  such  offense. 

Sec.  12  [act  of  Aug.  2, 1886  (2L  Stat.,  211).}     That  every  ^-a  it  y^for 
person  who  knowingly  purchases  or  receives  for  sale  any  manufacturers 
oleomargarine  from  any  manufacturer  who  has  not  paid  speeiaiataxg  pai 
the  special  tax  shall  be  liable  for  each  offense  to  a  penalty 
of  one  hundred  dollars,  and  to  a  forfeiture  of  all  articles 
so  purchased  or  received,  or  of  the  full  value  thereof. 

Svc.  13  [act  of  Aug.  2, 1886  (2  A  Stat.,  211).}    That  when-    stamps    on 

J       ••  3       s  ~ ,     .    •  '  I  .  -    empty    packages 

ever  any  stamped  package  containing  oleomargarine  is  to  be  destroyed. 

emptied,  it  shall  be  the  duty  of  the  person  in  whose  hands 

the  same  is  to  destroy  utterly  the  stamps  thereon ;  and 

any  person  who  willfully  neglects  or  refuses  so  to  do  shall 

for  each  such  offense  be  fined  not  exceeding  fifty  dollars,    Penalty. 

and  imprisoned  not  less  than  ten  days  nor  more  than  six 

months. 

And  any  person  who  fraudulently  gives  away  or  accepts 
from  another,  or  who  sells,  buys,  or  uses  for  packing 
oleomargarine,  any  such  stamped  package,  shall  for  each 
such  offense  be  fined  not  exceeding  one  hundred  dollars, 
and  be  imprisoned  not  more  than  one  year. 


298  OLEOMARGARINE. 

Any  revenue  officer  may  destroy  an}^  emptied  oleomar- 
garine package  upon  which  the  tax-paid  stamp  is  found. 

Failure  to  destroy  stamp  on  empty  package.  (Morris  v.  U.  S., 
161  Fed.  Rep.,  672;  Vermont  r.  U.  S.,  174  Fed.  Rep.,  792;  T.  D. 
1579;  U.  S.  v.  White  &  Paller,  U.  S.  D.  C.  E.  D.  Pa.;  T.  D. 
1334;  U.  S.  v.  Ripper,  178  Fed.  Rep.,  24;  Ripper  v.  U.  S.,  179 
Fed.  Rep.,  497;  T.  D.  1609.) 

mSSSStB.^  Sec-  14  tad  °fAu9-  2,  1886  (H  8tat:>  ?**).]  That  there 
shall  be  in  the  office  of  the  Commissioner  of  Internal 

Revenue  an  analytical  chemist  and  a  microscopist,  who 
shall  each  be  appointed  by  the  Secretary  of  the  Treasury, 
and  shall  each  receive  a  salary  of  two  thousand  five  hun- 
dred dollars  per  annum;  and  the  Commissioner  of  Internal 
Revenue  may,  whenever  in  his  judgment  the  necessities  of 
the  service  so  require,  employ  chemists  and  microscopists, 
to  be  paid  such  compensation  as  he  may  deem  proper, 
not  exceeding  in  the  aggregate  any  appropriation  made 
for  that  purpose, 
commissioner     AnCi  sucn  Commissioner  is  authorized  to  decide  what 

to     decide     con-  .  . 

tested  cases.  substances,  extracts,  mixtures,  or  compounds  which  may 
be  submitted  for  his  inspection  in  contested  cases  are  to 
be  taxed  under  this  act;  and  his  decision  in  matters  of 
taxation  under  this  act  shall  be  final. 

The  Commissioner  may  also  decide  whether  any  sub- 
stance made  in  imitation  or  semblance  of  butter,   and 
intended  for  human  consumption,  contains  ingredients 
Appeal.  deleterious  to  the  public  health;  but  hi  case  of  doubt  or 

contest  his  decision  in  this  class  of  cases  may  be  appealed 
from  to  a  board  hereby  constituted  for  the  purpose,  and 
composed  of  the  Surgeon-General  of  the  Army,  the  Sur- 
geon-General of  the  Navy,  and  the  Commissioner  (now 
Secretary)  of  Agriculture;  and  the  decisions  of  this  board 
shall  be  final  in  the  premises. 

u Iftl m% ed     Sec-  15  &ct  °f  Au9-  2:  1886  (®4  Stat'  212^  That  a.° 
packages    andpackages  of  oleomargarine  subject   to    tax    under   this 

margarine!  °le°  act  that  shall  be  found  without  stamps  or  marks  as 
herein  provided,  and  all  oleomargarine  intended  for 
human  consumption  which  contain  ingredients  adjudged, 
as  hereinbefore  provided,  to  be  deleterious  to  the  public 
health,  shall  be  forfeited  to  the  United  States.     Any  per- 

r  e  nfo  v  i  n  gson  who  shall  willfully  remove  or  deface  the  stamps, 
marks,  or  brands  on  a  package  containing  oleomargarine 
taxed  as  provided  herein  shall  be  guilty  of  a  misde- 
meanor, and  shall  be  punished  by  a  fine  of  not  less  than 
one  hundred  dollars  nor  more  than  two  thousand  dollars, 
and  by  imprisonment  for  not  less  than  thirty  days  nor 
more  than  six  months. 

Wilkins  v.  U.  S.,  96  Fed.  Rep.,  837;  T.  D.  21623. 

oleomargarine     gEC    16  [act  ofAuq.  2,  1886  (2A  Stat.,  212).]   That  oleo- 

for  export.  „  L  J  i  r  ±\  l  c  c      4. 

margarine  may  be  removed  irom  tiie  place  or  manufacture 
for  export  to  a  foreign  country  without  payment  of  tax 
or  allixing  stamps  thereto,  under  such  regulations  and 
the  tiling  of  such  bonds  and  other  security  as  the  Com- 


OLEOMARGARINE.  299 

missioner  of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  may  prescribe.  Every  person 
who  shall  export  oleomargarine  shall  brand  upon  every 
tub,  firkin,  or  other  package  containing  such  article  the 
word  " Oleomargarine,"  in  plain  Roman  letters  not  less 
than  one-half  inch  square. 

Sales  to  vessels  in  ports  of  this  country  not  exportation  (T.  D. 
657,  May  18,  1903;  Swan  &  Finch  Co.  v.  U.  S.,  190  U.  S.,  143). 

See  Regulations  No.  29  concerning  exportations. 

Oleomargarine  reimported  subject  to  duty  equal  to  the  internal- 
revenue  tax,  although  returned  to  the  factory  for  remanufacture. 
(T.  D.  857.) 

Withdrawals  of  oleomargarine  free  of  tax  for  export  where  the 
tax  remitted  amounts  to  $100  or  over  can  not  be  afterwards 
separated  into  small  consignments  for  the  purpose  of  being 
accounted  for  as  shipments  on  which  the  tax  is  less  than  $100. 
(T.  D.  1662.) 

Sec.  17  [act  of  Aug.  2, 1886  (24  Stat.,  212).}     That  when-    Forfeiture  and 
ever  any  person  engaged  in  carrying  on  the  business  of  fraud %>"  Su- 
manufacturing  oleomargarine  defrauds,   or  attempts  tofacturer- 
defraud,  the  United  States  of  the  tax  on  the  oleomar- 
garine produced  by  him,  or  any  part  thereof,  he  shall  for- 
feit the  factory  and  manufacturing  apparatus  used  by 
him,  and  all  oleomargarine  and  all  raw  material  for  the 
production  of  oleomargarine  found  in  the  factory  and  on 
the  factory  premises,  and  shall  be  fined  not  less  than  five 
hundred   dollars   nor   more   than  live   thousand    dollars, 
and  be  imprisoned  not  less  than  six  months  nor  more 
than  three  years. 

Indictment.     Enders  v.  U.  S.     (T.  D.  1669.) 

Forfeiture  and  penalty  for  defrauding  or  attempting  to  defraud. 

(Hardesty  v.  U.  S.,  168  Fed.  Rep.,  25.) 

Information     for    forfeiture     of    oleomargarine     plant.     The 

language  of  this  section  is  similar  to  that  in  regard  to  distilled 

spirits  (sec.  3257),  and  decision  under  latter  section  applicable. 

(U.  S.  v.  Manufacturing  Apparatus,  etc.,  of  New  Jersey  Melting 

&  Churning  Co.,  141  Fed.  Rep.,  475.) 

Sec.  18  [act  of  Aug.  2, 1886  (24  Stat.,  212) .]  That  if  any  Forfeiture  for 
manufacturer  of  oleomargarine,  any  dealer  therein,  or^|[ln7aw.eoinply 
any  importer  or  exporter  thereof  shall  knowingly  or  will- 
fully omit,  neglect,  or  refuse  to  do,  or  cause  to  be  done, 
any  of  the  things  required  by  law  in  the  carrying  on  or 
conducting  of  his  business,  or  shall  do  anything  by  this 
act  prohibited,  if  there  be  no  specific  penalty  or  punish- 
ment imposed  by  any  other  section  of  this  act  for  the 
neglecting,  omitting,  or  refusing  to  do,  or  for  the  doing 
or  causing  to  be  done,  the  thing  required  or  prohibited, 
he  shall  pay  a  penalty  of  one  thousand  dollars;  and  if  the 
person  so  offending  be  the  manufacturer  of  or  a  wholesale 
dealer  in  oleomargarine,  all  the  oleomargarine  owned  by 
him,  or  in  which  he  has  any  interest  as  owner,  shall  be 
forfeited  to  the  United  States. 

Sales  in  quantities  exceeding  10  pounds  at  one  time  by  retail 
dealers,  penalty  provided  in  section  18  applies.  (U.  S.  v.  Ripper, 
178  Fed.  Rep.,  24;  Ripper  v.  U.  S.,  179  Fed.  Rep.,  497;  T.  D. 
1609.) 


300  OLEOMARGARINE. 

^Recovery  of  Sec  19  [act  of  Aug.  2, 1886  (24  Stat,  212) .]  Thatallfines, 
penalties,  and  forfeitures  imposed  by  this  act  may  be 
recovered  in  any  court  of  competent  jurisdiction. 
Regulations.  Sec._  20  [act  of  Aug.  2,  1886  (24  Stat,  212).]  That  the 
Commissioner  of  Internal  Revenue,  with  the  approval  of 
the  Secretary  of  the  Treasury,  may  make  all  needful  regu- 
lations for  the  carrying  into  effect  of  this  act. 

See  citations  under  section  6,  power  of  Commissioner  to  make 
regulations,  page  295. 

(A  mf^  SeC'  21  [act  °fAuV-  ®> 1886  (H  Stat->  21S)1  That  this  act 
shall  go  into  effect  on  the  ninetieth  day  after  its  passage; 
and  all  wooden  packages  containing  ten  or  more  pounds 
of  oleomargarine  found  on  the  premises  of  any  dealer  on 
or  after  the  ninetieth  day  succeeding  the  date  of  the 
passage  of  this  act  shall  be  deemed  to  be  taxable  under 
section  eight  of  this  act,  and  shall  be  taxed,  and  shall  have 
affixed  thereto  the  stamps,  marks,  and  brands  required 
by  this  act  or  by  regulations  made  pursuant  to  tins  act; 
and  for  the  purpose  of  securing  the  affixing  of  the  stamps, 
marks,  and  brands  required  by  this  act,  the  oleomargarine 
shall  be  regarded  as  having  been  manufactured  and  sold, 
or  removed  from  the  manufactory  for  consumption  or 
use,  on  or  after  the  day  tins  act  takes  effect;  and  such 
stock  on  hand,  stock  on  hand  at  the  time  of  the  taking  effect  of  tins  act 
may  be  stamped,  marked,  and  branded  under  special 
regulations  of  the  Commissioner  of  Internal  Revenue, 
approved  by  the  Secretary  of  the  Treasury;  and  the 
Commissioner  of  Internal  Revenue  may  authorize  the 
holder  of  such  packages  to  mark  and  brand  the  same  and 
to  affix  thereto  the  proper  tax-paid  stamps. 
See  section  7,  act  May  9,  1902,  page  304. 
Butter  denned.  Sec.  4  [act  of  May  9,  1902  {32  Stat,  94)].  That  for  the 
purpose  of  this  Act  "butter"  is  hereby  defined  to  mean 
an  article  of  food  as  defined  in  "An  Act  defining  butter, 
also  imposing  a  tax  upon  and  regulating  the  manufacture, 
sale,  importation,  and  exportation  of  oleomargarine," 
approved  August  second,  eighteen  hundred  and  eighty- 

buuerudetnnedtedsix;  that  'Adulterated  butter"  is  hereby  defined  to  mean 
a  grade  of  butter  produced  by  mixing,  reworking,  rechurn- 
ing  in  milk  or  cream,  refining,  or  in  any  way  producing  a 
uniform,  purified,  or  improved  product  from  different  lots 
or  parcels  of  melted  or  unmelted  butter  or  butter  fat,  in 
which  any  acid,  alkali,  chemical,  or  any  substance  what- 
ever is  introduced  or  used  for  the  purpose  or  with  the 
effect  of  deodorizing  or  removing  therefrom  rancidity,  or 
any  butter  or  butter  fat  with  which  there  is  mixed  any 
substance  foreign  to  butter  as  herein  defined,  with  intent 
or  effect  of  cheapening  in  cost  the  product  or  any  butter 
in  the  manufacture  or  manipulation  of  which  any  process 
or  material  is  used  with  intent  or  effect  of  causing  the 
absorption  of    abnormal    quantities  of  water,   milk,   or 

vaTeTbXrrT:reT;  ?£*  " Process  butter"  or  "renovated  butter"  is 
fined.  hereby  defined  to  mean  butter  which  has  been  subjected 


OLEOMARGARINE.  301 

to  any  process  by  which  it  is  melted,  clarified  or  refined 
and  made  to  resemble  genuine  butter,  always  excepting 
"adulterated  butter"  as  defined  by  this  Act.     *     *     * 

The  provisions  of  this  section  imposing  special  taxes  on  manu- 
facturers of  renovated  and  adulterated  butter  and  on  dealers  in 
adulterated  butter  will  be  found  on  page  143,  under  head  of 
Special  Taxes;  also  the  provision  imposing  fines  for  nonpayment 
of  special  tax,  page  132. 

That  every  manufacturer  of  process  or  renovated  butter  Manufacturers 
or  adulterated  butter  shall  file  with  the  collector  of S?ventori^etc.s 
internal  revenue  of  the  district  in  which  his  manufactory 
is  located  such  notices,  inventories,  and  bonds,  shall  keep 
such  books  and  render  such  returns  of  material  and  prod- 
ucts, shall  put  up  such  signs  and  affix  such  number  of  his  signs 
factory,  and  conduct  his  business  under  such  surveillance 
of  officers  and  agents  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treas- 
ury, may  by  regulation  require.  But  the  bond  required 
of  such  manufacturer  shall  be  with  sureties  satisfactory 
to  the  collector  of  internal  revenue,  and  in  a  penal  sum 
of  not  less  than  five  hundred  dollars;  and  the  sum  of 
said  bond  may  be  increased  from  time  to  time  and  addi- 
tional sureties  required  at  the  discretion  of  the  collector 
or  under  instructions  of  the  Commissioner  of  Internal 
Revenue. 

That  all  adulterated  butter  shall  be  packed  bv  the  Manufacturers 
manufacturer  thereof  in  firkins,  tubs,  or  other  wooden 
packages  not  before  used  for  that  purpose,  each  contain- 
ing not  less  than  ten  pounds,  and  marked,  stamped,  and 
branded  as  the  Commissioner  of  Internal  Revenue,  with 
the  approval  of  the  Secretary  of  the  Treasury,  shall  pre- 
scribe; and  all  sales  made  by  manufacturers  of  adulter- 
ated butter  shall  be  in  original  stamped  packages. 

Dealers  in  adulterated  butter  must  sell  only  original  or  Dealers'  pack- 
from  original  stamped  packages,  and  when  such  original 
stamped  packages  are  broken  the  adulterated  butter  sold 
from  same  shall  be  placed  in  suitable  wooden  or  paper 
packages,  which  shall  be  marked  and  branded  as  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  shall  prescribe.  Every  person 
who  knowingly  sells  or  offers  for  sale,  or  delivers  or  offers 
to  deliver,  any  adulterated  butter  in  any  other  form  than 
in  new  wooden  or  paper  packages  as  above  described,  or 
who  packs  in  any  package  any  adulterated  butter  in  any 
manner  contrary  to  law,  or  who  falsely  brands  any  pack- 
age or  affixes  a  stamp  on  any  package  denoting  a  less  Penalty, 
amount  of  tax  than  that  required  by  law,  shall  be  fined 
for  each  offense  not  more  than  one  thousand  dollars  and 
be  imprisoned  not  more  than  two  years. 

That  every  manufacturer  of  adulterated  butter  shall    caution  label, 
securely  affix,  by  pasting,  on  each  package  containing 
adulterated  butter  manufactured  by  him  a  label  on  which 
shall  be  printed,  besides  the  number  of  the  manufactory 
and  the  district  and  State  in  which  it  is  situated,  these 


302  OLEOMARGARINE. 

words:  "Notice. — That  the  manufacturer  of  the  adulter- 
ated butter  herein  contained  has  complied  with  all  the  re- 
quirements of  law.  Every  person  is  cautioned  not  to  use 
either  this  package  again  or  the  stamp  thereon,  nor  to 
remove  the  contents  of  this  package  without  destroying 
said  stamp,  under  the  penalty  provided  by  law  in  such 
cases."  Every  manufacturer  of  adulterated  butter  who 
neglects  to  affix  such  label  to  any  package  containing 
adulterated  butter  made  by  him,  or  sold  or  offered  for  sale 
Penalty.  for  or  by  him,  and  every  person  who  removes  any  such 
label  so  affixed  from  any  such  package  shall  be  fined  fifty 
dollars  for  each  package  in  respect  to  which  such  offense 
is  committed, 
terated  °b  u  u e'r  That  upon  adulterated  butter,  when  manufactured  or 
and  process  orsold  or  removed  for  consumption  or  use,  there  shall  be 
renovated  butter.  assesse(|  and  collected  a  tax  of  ten  cents  per  pound,  to  be 
paid  by  the  manufacturer  thereof,  and  any  fractional  part 
of  a  pound  shall  be  taxed  as  a  pound,  and  that  upon  proc- 
ess or  renovated  butter,  when  manufactured  or  sold  or 
removed  for  consumption  or  use,  there  shall  be  assessed 
and  collected  a  tax  of  one-fourth  of  one  cent  per  pound 
to  be  paid  by  the  manufacturer  thereof,  and  any  frac- 
tional part  of  a  pound  shall  be  taxed  as  a  pound.  The 
tax  to  be  levied  by  this  section  shall  be  represented  by 
stamps.  coupon  stamps,  and  the  provisions  of  existing  laws  gov- 

erning engraving,  issuing,  sale,  accountability,  effacement, 
and  destruction  of  stamps  relating  to  tobacco  and  snuff, 
as  far  as  applicable,  are  hereby  made  to  apply  to  the 
stamps  provided  by  this  section. 

That  the  provisions  of  sections  nine,  ten,  eleven,  twelve, 
thirteen,  fourteen,  fifteen,  sixteen,  seventeen,  eighteen, 
nineteen,  twenty,  and  twenty-one  of  "An  Act  defining 
butter,  also  imposing  a  tax  upon  and  regulating  the  manu- 
facture, sale,  importation,  and  exportation  of  oleomar- 
garine," approved  August  second,  eighteen  hundred  and 
eighty-six,  shall  apply  to  manufacturers  of  "adulterated 
butter"  to  an  extent  necessary  to  enforce  the  marking, 
branding,  identification,  and  regulation  of  the  exportation 
and  importation  of  adulterated  butter. 

Butter  containing  16  per  cent  or  more  of  moisture  is  held  to  be 
adulterated.  (Regulations  No.  9.  concerning  adulterated  butter 
and  process  or  renovated  butter.) 

Explanation  of  regulations  concerning  adulterated  butter. 
(T.  D.  1009,  June  6,  1906.) 

Authority  of  Commissioner  to  fix  moisture  limit — intent  to 
manufacture  not  material  if  process  has  that  effect.  (Coopers- 
ville  Cooperative  Creamery  Co.  v.  Lemon,  163  Fed.  Rep.,  145; 
T.  D.  1371;  T.  D.  1679,  March  3,  1911.) 

Refined  butter,  manufactured  from  salt,  glucose,  and  im- 
ported low-grade  or  "grease"  butter,  is  held  subject  to  tax  as 
adulterated  butter.     (T.  D.  557,  July  19,  1902.) 

Ladled  butter  containing  16  per  cent  of  moisture  liable  to 
stamp  tax  at  10  cents  per  pound.     (T.  D.  783.) 

Evidence  showing  reasonable  diligence  to  keep  moisture  con- 
tent within  requirements  of  law  not  sufficient  to  relieve  from 
liability.  (West  Point  Butter  and  Creamery  Co.  r.  Hammond, 
collector.     Cir.  Ct.  8th  circuit,  T.  D.  1667,  December  28,  1910.) 

Forwarding  samples  for  analysis.     (T.  D.  1587.) 


OLEOMARGARINE.  303 

Method  of  sampling  butter.     (T.  D.  1618.) 

Adulterated  butter. — No  assessment  should  be  recommended 

on  the  basis  of  a  single  sample  unless  there  is  other  evidence. 

(T.  D.  1539.) 

Sec.  5  [act  of  May  9,  1902  (32  Stat.,  196).}  All  parts  of  inspection  of 
an  Act  providing  for  an  inspection  of  meats  for  exporta- renovated  butter- 
tion,  approved  August  thirtieth,  eighteen  hundred  and 
ninety,  and  of  an  Act  to  provide  for  the  inspection  of  live 
cattle,  hogs,  and  the  carcasses  and  products  thereof 
which  are  the  subjects  of  interstate  commerce,  approved 
March  third,  eighteen  hundred  and  ninety-one,  and  of 
amendment  thereto  approved  March  second,  eighteen 
hundred  and  ninety-five,  which  are  applicable  to  the  sub- 
jects and  purposes  described  in  this  section  shall  apply  to 
process  or  renovated  butter.  And  the  Secretary  of  Agri- 
culture is  hereby  authorized  and  required  to  cause  a  rigid 
sanitary  inspection  to  be  made,  at  such  times  as  he  may 
deem  proper  or  necessary,  of  all  factories  and  storehouses 
where  process  or  renovated  butter  is  manufactured, 
packed,  or  prepared  for  market,  and  of  the  products 
thereof  and  materials  going  into  the  manufacture  of  the 
same.  All  process  or  renovated  butter  and  the  packages  Marking  of  ren- 
containing  the  same  shall  be  marked  with  the  words01 
"Renovated  Butter"  or  "Process  Butter"  and  by  such 
other  marks,  labels,  or  brands  and  in  such  manner  as  may 
be  prescribed  by  the  Secretary  of  Agriculture,  and  no 
process  or  renovated  butter  shall  be  shipped  or  trans- 
ported from  its  place  of  manufacture  into  any  other 
State  or  Territory  or  the  District  of  Columbia,  or  to  any 
foreign  country,  until  it  has  been  marked  as  provided  in 
this  section.     The  Secretary  of  Agriculture  shall  make  all  , s c/?,n?,La rL°f 

-.       .  „  •*  &1  .  .  .  „,  Agriculture  shall 

needful  regulations  for  carrying  this  section  into  effect,  make  regulations, 
and  shall  cause  to  be  ascertained  and  reported  from  time 
to  time  the  quantity  and  quality  of  process  or  renovated 
butter  manufactured,  and  the  character  and  the  condition 
of  the  material  from  which  it  is  made.  And  he  shall  also 
have  power  to  ascertain  whether  or  not  materials  used  in 
the  manufacture  of  said  process  or  renovated  butter  are 
deleterious  to  health  or  unwholesome  in  the  finished  prod- 
uct, and  in  case  such  deleterious  or  unwholesome  materials 
are  found  to  be  used  in  product  intended  for  exportation 
or  shipment  into  other  States  or  in  course  of  exportation 
or  shipment  he  shall  have  power  to  confiscate  the  same. 
Any  person,  firm,  or  corporation  violating  any  of  the  pro-  I'enaity. 
visions  of  this  section  shall  be  deemed  guilty  of  a  misde- 
meanor and  on  conviction  thereof  shall  be  punished  by  a 
fine  of  not  less  than  fifty  dollars  nor  more  than  five  hun- 
dred dollars  or  by  imprisonment  not  less  than  one  month 
nor  more  than  six  months,  or  by  both  said  punishments, 
in  the  discretion  of  the  court. 

Removal  of  marks,  brands,  stamps,  and  caution  labels  a  crime. 
(U.  S.  v.  Green,  137  Fed.  Rep.,  179;  T.  D.  980,  T.  D.  578;  contra, 
U.  S.  v.  Bohl,  125  Fed.  Rep.,  625.) 

The  Food  and  Drugs  Act  of  June  30,  1906,  (34  Stat.,  768.) 
The  Secretary  of  Agriculture  is  charged  with  the  enforcement 
of  this  act. 


304  OLEOMARGARINE. 

Note. — No  provision  is  made  in  the  act  of  May  9,  1902,  for 
the  exportation,  free  of  tax,  of  renovated  butter  nor  for  drawback 
of  tax  on  such  articles  when  exported.  Consequently,  all  reno- 
vated butter  for  export  must  be  stamped  and  marked  the  same 
as  for  the  domestic  market. 

[Act  Apr.  23,  1904,  making  appropriation  for  Department  of  Agriculture.] 

*  *  *  T^t  the  Secretary  of  Agriculture  may  construe 
the  provisions  of  the  act  of  March  third,  eighteen  hundred  and 
ninety-one,  as  amended  March  second,  eighteen  hundred  and 
ninety-five,  for  the  inspection  of  live  cattle  and  products  thereof, 
to  include  dairy  prodvicts  intended  for  exportation  to  any  foreign 
country  and  may  apply,  under  rules  and  regulations  to  be  pre- 
scribed by  him,  the  provisions  of  said  act  for  inspection  and 
certification  appropriate  for  ascertaining  the  purity  and  quality 
of  such  products  and  may  cause  the  same  to  be  so  marked, 
stamped,  or  labeled  as  to  secure  their  identity  and  make  known 
in  markets  of  foreign  countries  to  which  they  may  be  sent  from 
the  United  States  their  purity,  quality,  and  grade;  and  all  the 
provisions  of  said  act  relating  to  live  cattle  and  products  thereof 
for  export  shall  apply  to  dairy  products  so  inspected  and  certified. 

(See  Regulations  No.  9  and  No.  29.) 

Returns, books,  Sec.  6  [act  of  May  9, 1902  (32  Stat,  197).]  That  whole- 
saler! wholesale  sale  dealers  in  oleomargarine,  process,  renovated,  or  adul- 
terated butter  shall  keep  such  books  and  render  such 
returns  in  relation  thereto  as  the  Commissioner  of  Internal 
Revenue,  with  the  approval  of  the  Secretary  of  the  Treas- 
ury, may,  by  regulation,  require;  and  such  books  shall 
be  open  at  all  times  to  the  inspection  of  any  internal  reve- 
nue officer  or  agent.  And  any  person  who  willfully  vio- 
lates any  of  the  provisions  of  this  section  shall  for  each 
such  offense  be  fined  not  less  than  fift}"  dollars  and  not 
exceeding  five  hundred  dollars,  and  imprisoned  not  less 
than  thirty  days  nor  more  than  six  months. 

Section  41,  act  of  October  1.  1890  (26  Stat.,  621),  relative  to 
wholesale  dealers  in  oleomargarine  keeping  books  and  rendering 
returns  superseded  by  this  section. 

Collectors  of  internal  revenue  should  require  power  of  attorney, 
in  proper  legal  form,  from  agents  of  manufacturers  of  oleo- 
margarine, etc.,  who  render  and  sign  monthlv  returns.  (T.  D. 
1263".) 

Failure  by  wholesale  dealer  to  keep  books  and  render  returns; 
although  corporations  are  not  mentioned  in  sec.  6  it  was 
intended  to  embrace  them.  (U.  S.  v.  Union  Supply  Co.,  215 
U.  S.,  50;  T.  D.  1564.) 

Sec.  7  [act  of  May  9, 1902  (32  Stat.,  197).]  This  act  shall 
take  effect  on  the  first  day  of  July,  nineteen  hundred  and 
two. 

Oleomargarine  law  constitutional.  (McCray  v.  U.  S.,  195 
U.  S.,  27;  T.  D.  795;  Schick  v.  U.  S.,  Broadwell  v.  U.  S.,  195 
U.  S.,  65;  T.  D.  802.) 

The  oleomargarine  act  is  not  unconstitutional  as  a  delegation 
of  legislative  power  to  an  administrative  branch  of  the  Govern- 
ment.    (Lockwood  v.  U.  S.,  C.  C.  A.,  1909,  178  Fed.  Rep.,  437.) 

Constitutionality  of  State  laws  relating  to  oleomargarine: 

The  statute  of  Pennsylvania  prohibiting  the  manufacture  and 
sale  of  oleomargarine  within  the  State  not  unconstitutional. 
(Powell  r.  Pa..  L27  U.  S.,  675;  34  Int.  Rev.  Rec,  166.) 

New  Hampshire  law  prohibiting  sale  of  oleomargarine  unless 
colored  pink  unconstitutional.  (Collins  v.  New  Hampshire, 
171  U.  S.,  30.) 


Chapter  Ten. 
FILLED  CHEESE. 

[Act  of  June  6,  1896.     (29  Stat. ,  253.)] 


Sec. 
1  and  2.  Definitions. 

5.  Manufacturers'  notice,  books,  bonds, 

etc. 

6,  7,  and  8.  Marks,  signs,  label,  stamps. 
9  and  10.  Tax  on  filled  cheese. 

11.  Imported  filled  cheese. 
12  and  13.  Penalties. 


Sec. 

14.  Destruction    of    stamps    on    empty 

packages. 

15.  Scientific  tests. 

16  and  17.  Relative  to  fines  and  forfeit- 
ures. 

18.  Regulations  authorized. 

19.  When  act  to  take  effect. 


AN  ACT  Defining  cheese,  also  imposing  a  tax  upon  and  regulating  the 
manufacture,  sale,  importation,  and  exportation  of  "filled  cheese." 

Sec.  1.  [Act  of  June  6,  1896  (29  Stat.,  253).]  That  for  Cheese  deflned- 
the  purpose  of  this  Act,  the  word  "  cheese"  shall  be  under- 
stood to  mean  the  food  product  known  as  cheese,  and 
which  is  made  from  milk  or  cream  and  without  the  addi- 
tion of  butter,  or  any  animal,  vegetable,  or  other  oils  or 
fats  foreign  to  such  milk  or  cream,  with  or  without  addi- 
tional coloring  matter. 

Sec.  2.  That  for  the  purposes  of  this  Act  certain  sub-^jj^1  cheese 
stances  and  compounds  shall  be  known  and  designated  as 
"filled  cheese,"  namely:  All  substances  made  of  milk  or 
skimmed  milk,  with  the  admixture  of  butter,  animal  oils 
or  fats,  vegetable  or  any  other  oils,  or  compounds  foreign 
to  such  milk,  and  made  in  imitation  or  semblance  of 
cheese. 

Enacting  clause,  act  of  August  2,  1886,  as  amended  by  act  of 
May  9, 1902,  makes  all  imitation  dairy  products  subject  to  laws  of 
States  into  which  transported. 

Special  Taxes. — Sections  3  and  4  of  the  act  of  June  6,  1896, 
imposing  special  taxes  on  manufacturers  and  dealers  and  pen- 
alties for  failure  to  pay  special  taxes,  will  be  found  in  chapter 
3,  "Special  Taxes,"  page  144. 

Sec.  5.  That  every  manufacturer  of  filled  cheese  shall    Bonds,  notices, 
file  with  the  collector  of  internal  revenue  of  the  district  manufacturer. 
in  which  his  manufactory  is  located  such  notices,  inven- 
tories, and  bonds,  shall  keep  such  books  and  render  such  tu^n°soks  and  re" 
returns  of  materials  and  products,  shall  put  up  such  signs 
and  affix  such  number  to  his  factory,  and  conduct  his 
business  under  such  surveillance  of  officers  and  agents  as 
the  Commissioner  of  Internal  Revenue,  with  the  approval 
of  the  Secretary  of  the  Treasury,  may  by  regulation  re- 
quire.    But  the  bond  required  of  such  manufacturer  shall 
be  with  sureties  satisfactory  to  the  collector  of  internal 
revenue,  and  in  a  penal  sum  of  not  less  than  five  thousand 
dollars;  and  the  amount  of  said  bond  may  be  increased 

72170°— 11 20  305 


306 


FILLED    CHEESE. 


Penalty. 


Packages. 


m 

brands 


Retail  dealers. 


from  time  to  time,  and  additional  sureties  required,  at  the 
discretion  of  the  collector  or  under  instructions  of  the 
Commissioner  of  Internal  Revenue.  Any  manufacturer 
of  filled  cheese  who  fails  to  comply  with  the  provisions  of 
tins  section  or  with  the  regulations  herein  authorized, 
shall  be  deemed  guilty  of  a  misdemeanor  and  upon  con- 
viction thereof  shall  be  fined  not  less  than  five  hundred 
nor  more  than  one  thousand  dollars. 

Sec.  6.  That  filled  cheese  shall  be  packed  by  the  manu- 
arkf^Tnd  facturers  in  wooden  packages  only,  not  before  used  for 
that  purpose,  and  marked,  stamped,  and  branded  with  the 
words  " filled  cheese"  in  black-faced  letters  not  less  than 
two  inches  in  length,  in  a  circle  in  the  center  of  the  top  and 
bottom  of  the  cheese;  and  in  black-faced  letters  of  not  less 
than  two  inches  in  length  in  line  from  the  top  to  the  bot- 
tom of  the  cheese,  on  the  side  in  four  places  equidistant 
from  each  other;  and  the  package  containing  such  cheese 
shall  be  marked  in  the  same  manner,  and  in  the  same  num. 
ber  of  places,  and  in  the  same  description  of  letters  as 
above  provided  for  the  marking  of  the  cheese ;  and  all  sales 
or  consignments  made  by  manufacturers  of  filled  cheese  to 
wholesale  dealers  in  filled  cheese  or  to  exporters  of  filled 
cheese  shall  be  in  original  stamped  packages.  Retail  deal- 
ers in  filled  cheese  shall  sell  only  from  original  stamped 
packages,  and  shall  pack  the  filled  cheese  when  sold  in 
suitable  wooden  or  paper  packages,  which  shall  be  marked 
and  branded  in  accordance  with  rules  and  regulations  to 
be  prescribed  by  the  Commissioner  of  Internal  Revenue 
with  the  approval  of  the  Secretary  of  the  Treasury.  Every 
person  who  knowingly  sells  or  offers  to  sell,  or  delivers  or 
offers  to  deliver,  filled  cheese  in  any  other  form  than  in 
new  wooden  or  paper  packages,  marked  and  branded  as 
hereinbefore  provided  and  as  above  described,  or  who 
packs  in  any  package  or  packages  filled  cheese  in  any  man- 
ner contrary  to  law,  or  who  falsely  brands  any  package  or 
affixes  a  stamp  on  any  package  denoting  a  less  amount  of 
tax  than  that  required  by  law,  shall  upon  conviction 
thereof  be  fined  for  each  and  every  offense  not  less  than 
fifty  dollars  and  not  more  than  five  hundred  dollars  or  be 
imprisoned  not  less  than  thirty  days  nor  more  than  one 
year. 

Sec.  7.  That  all  retail  and  wholesale  dealers  in  filled 
cheese  shall  display  in  a  conspicuous  place  in  his  or  their 
sales  room  a  sign  bearing  the  words  "Filled  cheese  sold 
here"  in  black-faced  letters  not  less  than  six  inches  in 
length,  upon  a  white  ground,  with  the  name  and  number 
of  the  revenue  district  in  which  his  or  their  business 
is  conducted;  and  any  wholesale  or  retail  dealer  in 
filled  cheese  who  fails  or  neglects  to  comply  with  the  pro- 
visions of  this  section  shall  be  deemed  guilty  of  a  misde- 
meanor, and  shall  on  conviction  thereof  be  fined  for  each 
and  every  offense  not  less  than  fifty  dollars  and  not  more 
than  two  hundred  dollars. 


Penalties. 


Signs  of  whole- 
sale and  retail 
dealers. 


Penalty. 


FILLED   CHEESE.  307 

Sec.  8.  That  every  manufacturer  of  filled  cheese  shall  Label, 
securely  affix,  by  pasting  on  each  package  containing  filled 
cheese  manufactured  by  him,  a  label  on  which  shall  be 
printed,  besides  the  number  of  the  manufactory  and  the 
district  and  state  in  which  it  is  situated,  these  words: 
''Notice. — The  manufacturer  of  the  filled  cheese  herein 
contained  has  complied  with  all  the  requirements  of  the 
law.  Every  person  is  cautioned  not  to  use  either  this 
package  again  or  the  stamp  thereon  again,  nor  to  remove 
the  contents  of  this  package  without  destroying  said 
stamp,  under  the  penalty  provided  by  law  in  such  cases." 
Every  manufacturer  of  filled  cheese  who  neglects  to  affix 
such  label  to  any  package  containing  filled  cheese  made 
by  him  or  sold  or  offered  for  sale  by  or  for  him,  and  every 
person  who  removes  any  such  label  so  affixed  from  any 
such  package,  shall  be  fined  fifty  dollars  for  each  package  Penalty. 
in  respect  to  which  such  offense  is  committed. 

Sec.  9.  That  upon  all  filled  cheese  which  shall  be  man-Jai  on  prod' 
ufactured  there  shall  be  assessed  and  collected  a  tax  of 
one  cent  per  pound,  to  be  paid  by  the  manufacturer 
thereof;  and  any  fractional  part  of  a  pound  in  a  package 
shall  be  taxed  as  a  pound.  The  tax  levied  by  this  section 
shall  be  represented  by  coupon  stamps;  and  the  provi-  coupon  stamps, 
sions  of  existing  laws  governing  the  engraving,  issue,  sale, 
accountability,  effacement,  and  destruction  of  stamps 
relating  to  tobacco  and  snuff,  as  far  as  applicable,  are 
hereby  made  to  apply  to  stamps  provided  for  by  this 
section. 

See  sections  3218,  3369,  3445,  and  3446,  Revised  Statutes. 
Filled  cheese  for  export  to  be  tax  paid.     (Cornell  v.  Coyne, 
192  U.  S.,  418;  T.  D.  757.) 

Sec.  10.  That  whenever  any  manufacturer  of  filled  oftt|SiepstS.ent 
cheese  sells  or  removes  for  sale  or  consumption  any  filled 
cheese  upon  which  the  taxis  required  to  be  paid  by  stamps, 
without  paying  such  tax,  it  shall  be  the  duty  of  the  Com- 
missioner of  Internal  Revenue,  within  a  period  of  not 
more  than  two  years  after  such  sale  or  removal,  upon 
satisfactory  proof,  to  estimate  the  amount  of  tax  which 
has  been  omitted  to  be  paid  and  to  make  an  assessment 
therefor  and  certify  the  same  to  the  collector.  The  tax 
so  assessed  shall  be  in  addition  to  the  penalties  imposed 
by  law  for  such  sale  or  removal. 

Sec.  11.  That  all  filled  cheese  as  herein  defined  im-  imported  tax 
ported  from  foreign  countries  shall,  in  addition  to  any01 
import  duty  imposed  on  the  same,  pay  an  internal-reve- 
nue tax  of  eight  cents  per  pound,  such  tax  to  be  repre- 
sented by  coupon  stamps ;  and  such  imported  filled  cheese 
and  the  packages  containing  the  same  shall  be  stamped, 
marked,  and  branded,  as  in  the  case  of  filled  cheese  manu- 
factured in  the  United  States. 

Sec.  12.  That  any  person  who  knowingly  purchases  or    Penalty, 
receives  for  sale  any  filled  cheese  which  has  not  been 


308  FILLED   CHEESE. 

branded  or  stamped  according  to  law,  or  which  is  con- 
tained in  packages  not  branded  or  marked  according  to 
law,  shall  be  liable  to  a  penalty  of  fifty  dollars  for  each 
such  offense. 

penalty.  Sec.  13.  That  every  person  who  knowingly  purchases 

or  receives  for  sale  any  filled  cheese  from  any  manufac- 
turer or  importer  who  has  not  paid  the  special  tax  herein 
provided  for  shall  be  liable,  for  each  offense,  to  a  penalty 
of  one  hundred  dollars  and  to  a  forfeiture  of  all  articles  so 
purchased  or  received,  or  of  the  full  value  thereof. 

Empty  pack-  Sec.  14.  That  whenever  any  stamped  package  con- 
SoyXst°be  taining  filled  cheese  is  emptied  it  shall  be  the  duty  of  the 
person  in  whose  hands  the  same  is  to  destroy  the  stamps 
thereon;  and  any  person  who  willfully  neglects  or  refuses 
so  to  do  shall,  for  each  such  offense,  be  fined  not  exceeding 
fifty  dollars  or  imprisoned  not  less  than  ten  days  nor  more 
than  six  months. 

Deleterious  in-  Sec.  15.  That  the  Commissioner  of  Internal  Revenue 
n£tt  to^-is  authorized  to  have  applied  scientific  tests,  and  to  decide 
cide-  whether  any  substances  used  in  the  manufacture  of  filled 

Appeal.  cheese  contain  ingredients  deleterious  to  health.     But  in 

case  of  doubt  or  contest  his  decision  in  this  class  of  cases 
may  be  appealed  from  to  a  board  hereby  constituted  for 
the  purpose,  and  composed  of  the  Surgeon-General  of  the 
Army,  the  Surgeon-General  of  the  Navy,  and  the  Secre- 
tary of  Agriculture,  and  the  decision  of  this  board  shall 
be  final  in  the  premises. 

Forfeiture.  Sec.  16.  That  all  packages  of  filled  cheese  subject  to 

tax  under  this  Act  that  shall  be  found  without  stamps  or 
marks  as  herein  provided,  and  all  filled  cheese  intended 
for  human  consumption  which  contains  ingredients  ad- 
judged as  hereinbefore  provided  to  be  deleterious  to  the 
public  health,  shall  be  forfeited  to  the  United  States. 

Fines,    penai-     §EC.  17.  That  all  fines,  penalties,  and  forfeitures  imj 
ties,  etc.,  recov-poged  by  this  Act  may  be  recovered  in  any  court  of  com- 
petent jurisdiction. 

Regulations.  gEC-  jg.  That  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  shall 
make  all  needful  regulations  for  the  carrying  into  effect 
of  the  provisions  of  this  Act. 

Regulations  No.  22  relative  to  filled  cheese. 

when60"'6'  date  Sec.  19.  That  this  Act  shall  go  into  effect  on  the  nine- 
tieth day  after  its  passage,  and  all  wooden  packages  con- 
taining ten  or  more  pounds  of  filled  cheese  found  on  the 
premises  of  any  dealer  on  and  after  the  ninetieth  day 
succeeding  the  date  of  the  passage  of  this  Act,  shall  be 
deemed  to  be  taxable  under  section  nine  of  this  Act,  and 
shall  be  taxed,  and  shall  have  affixed  thereto  the  stamps, 
marks,  and  brands  required  by  this  Act  or  by  regulations 
made  pursuant  to  this  Act;  and  for  the  purpose  of  secur- 
ing the  affixing  of  the  stamps,  marks,  and  brands  required 
by  this  Act,  the  filled  cheese  shall  be  regarded  as  having 


FILLED    CHEESE.  309 

been  manufactured  and  sold  or  removed  from  the  manu- 
factory for  consumption  or  use  on  or  after  the  day  this 
Act  takes  effect;  and  such  stock  on  hand  at  the  time  of 
the  taking  effect  of  this  Act  may  be  stamped,  marked, 
and  branded  under  special  regulations  of  the  Commis- 
sioner of  Internal  Revenue,  approved  by  the  Secretary  of 
the  Treasury ;  and  the  Commissioner  of  Internal  Revenue 
may  authorize  the  holder  of  such  packages  to  mark  and 
brand  the  same  and  to  affix  thereto  the  proper  tax-paid 
stamps. 

circular  letter  to  collectors  and  revenue  agents  relative  to  the 
enforcement  of  the  law  imposing  a  tax  on  filled  cheese.  (T.  D. 
1516.) 


Chapter  Eleven. 
MIXED  FLOUR. 

[Sections  35  to  49,  act  of  June  13,  1S98  (30  Stat.,  448),  as  amended  by  act  April  12,  1902  (32  Stat.,  96).] 


Sec. 

35.  Mixed  flour  defined. 

36.  Special  tax. 

37.  Marks  and  brands;  penalty. 

38.  Packages;  penalty. 

39.  Label;  penalty. 

40.  Tax,  stamps,   laws  applicable.     Re- 

packed flour;  penalty. 

41.  Assessment   of   tax   on   mixed    flour 

when  removed  without  stamps. 

42.  Tax  on  imported  mixed   flour;  pen- 

alty. 


Sec. 

43.  Penalty  and  forfeiture. 

44.  Removal  for  export. 

45.  -  Destruction    of    stamps    on    empty 

packages;  penalty. 

46.  Penalties  recoverable. 

47.  Regulations.     Additional  clerks  and 

agents. 

48.  Penalty  for  subsequent  violations. 

49.  Date  when  act  takes  effect. 


Sec.  35.  [Act  June  13,  1898  (30  Stat.,  467),  as  amended 
by  sec.  13,  act  Mar.  2,  1901  (31  Stat.,  949),  and  act  of  Apr. 
12, 1902  (32  Stat.,  99) .]  That  for  the  purposes  of  this  Act, 
^xed  flour  de- t}ie  WOrds  "mixed  flour"  shall  be  taken  and  construed 
to  mean  the  food  product  resulting  from  the  grinding  or 
mixing  together  of  wheat,  or  wheat  flour,  as  the  principal 
constituent  in  quantity,  with  any  other  grain,  or  the 
product  of  any  other  grain,  or  other  material,  except  such 
material,  and  not  the  product  of  any  grain,  as  is  com- 
monly used  for  baking  purposes:  Provided,  That  when 
the  product  resulting  from  the  grinding  or  mixing- 
together  of  wheat  or  wheat  flour  with  any  other  grain,  or 
the  product  of  any  other  grain,  of  which  wheat  or  wheat 
flour  is  not  the  principal  constituent  as  specified  in  the 
foregoing  definition,  is  intended  for  sale,  or  is  sold,  or 
offered  for  sale  as  wheat  flour,  such  product  shall  be  held 
to  be  mixed  flour  within  the  meaning  of  this  Act. 

See  pages  7-8,  Regulations,  No.  25,  revised  August,  1907.  _ 
"Pancake"  and  "Compound"  Flours  are  classed  as  "mixed 
flour' '  if  wheat  flour  is  principal  ingredient.     (T.  D.  971,  Jan.  27, 
■     1906.) 

special  taxes.  gEC-  35,  That  every  person,  firm,  or  corporation,  before 
engaging  in  the  business  of  making,  packing,  or  repacking 
mixed  flour,  shall  pay  a  special  tax  at  the  rate  of  twelve 
dollars  per  annum,  the  same  to  be  paid  and  posted  in 
accordance  with  the  provisions  of  sections  thirty-two 
hundred  and  forty-two  and  thirty-two  hundred  and 
thirty-nine  of  the  Revised  Statutes,  and  subject  to  the 
fines  and  penalties  therein  imposed  for  any  violation 
thereof. 

Mixed  flour — Investigations  by  collectors  as  to  proper  returns. 
(T.  D.  471,  Feb.  6,  1902.) 

310 


MIXED    FLOUR. 


311 


Sec.  37.  That  every  person,  firm,  or  corporation  mak-m^r£j a  ge^, 
ing,  packing,  or  repacking  mixed  flour  shall  plainly  mark  brands. 
or  brand  each  package  containing  the  same  with     the 
words  ''mixed  flour"  in  plain  black  letters  not  less  than 
two  inches  in  length,  together  with  the  true  weight  of 
such  package,  the  names  of  the  ingredients  composing  the 
same,  the  name  of  the  maker  or  packer,  and  the  place 
where  made  or  packed.     In  addition  thereto,  such  maker 
or  packer  shall  place  in  each  package  a  card  not  smaller    cards  in  pack- 
than  two  inches  in  width  by  three  inches  in  length,  upon** 
which  shall  be  printed  the  words  "mixed  flour,"  together 
with  the  names  of  the  ingredients  composing  the  same, 
and  the  name  of  the  maker  or  packer,  and  the  place  where 
made  or  packed.     Any  person,  firm,  or  corporation  mak- 
ing, packing,  or  repacking  mixed  flour  hereunder,  failing 
to  comply  with  the  provisions  of  this  section,  shall  bs 
deemed  guilty  of  a  misdemeanor,  and  upon  conviction    Penalty. 
shall  be  punished  by  a  fine  of  not  less  than  two  hundred 
and  fifty  dollars  and  not  more  than  five  hundred  dollars, 
or  be  imprisoned  not  less  than  sixty  days  nor  more  than 
one  year. 

Pages  12-13,  Regulations,  No.  25,  revised  August,  1907. 

Sec.  38.  That  all  sales  and  consignments  of  mixed  flour    Packages, char- 
shall  be  in  packages  not  before  used  for  that  purpose ;  and a( 
every  person,  firm,  or  corporation  knowingly  selling  or 
offering  for  sale  any  mixed  flour  in  other  than  marked  and 
branded  packages,  as  required  by  the  provisions  of  this 
Act  relating  to  the  manufacture  and  sale  of  mixed  flour, 
or  who  packs  in  any  package  or  packages  any  mixed  flour 
in  any  manner  contrary  to  the  provisions  relating  to  the 
manufacture  and  sale  of  mixed  flour  of  this  Act,  or  who 
falsely  marks  or  brands  any  package  or  packages  contain- 
ing mixed  flour,  or  unlawfully  removes  such  marks  or 
brands,  shall,  for  each  such  offense,  be  punished  by  a  fine    Penalty. 
of  not  less  than  two  hundred  and  fifty  dollars  and  not 
more  than  five  hundred  dollars,  or  by  imprisonment  not 
less  than  thirty  days  nor  more  than  one  year. 

Sec.  39.  That  in  addition  to  the  branding  and  marking  Label. 
of  mixed  flour  as  herein  provided,  there  shall  be  affixed  to 
the  packages  containing  the  same  a  label  in  the  following 
words:  " Notice. — The  (manufacturer  or  packer,  as  the 
case  may  be)  of  the  mixed  flour  herein  contained  has  com- 
plied with  all  the  requirements  of  law.  Every  person  is 
cautioned  not  to  use  this  package  or  label  again  or  to 
remove  the  contents  without  destroying  the  revenue 
stamp  thereon,  under  the  penalty  prescribed  by  law  in 
such  cases."  Every  person,  firm,  or  corporation  failing 
or  neglecting  to  affix  such  label  to  any  package  contain- 
ing mixed  flour  made  or  packed  by  him  or  them,  or  who 
removes  from  any  such  package  any  label  so  affixed,  shall, 
upon  conviction  thereof,  be  fined  not  less  than  fifty  dol-  Penalty. 
lars  for  each  label  so  removed. 


312 


MIXED   FLOUR. 


uct 


taxable. 


irod-  Sec.  40.  That  barrels  or  other  packages  in  which  mixed 
flour  may  be  packed  shall  contain  not  to  exceed  one  hun- 
dred and  ninety-six  pounds;  that  upon  the  manufacture 
and  sale  of  mixed  flour  there  shall  be  levied  a  tax  of  four 
cents  per  barrel  or  other  package  containing  one  hundred 
and  nmety-six  pounds  or  more  than  ninety-eight  pounds; 
two  cents  on  every  half  barrel  or  other  package  contain- 
ing ninety-eight  pounds  or  mors  than  forty-nine  pounds; 
one  cent  on  every  quarter  barrel  or  other  package  con- 
taining forty^nine  pounds  or  more  than  twenty-four  and 
one-half  pounds*  and  one-half  cent  on  every  one-eighth 
barrel  or  other  package  containing  twenty-four  and  a  half 
pounds  or  less,  to  be  paid  by  the  person,  firm,  or  corpora- 
tion making  or  packing  said  flour.  The  tax  levied  by  this 
coupon  stamps,  section  shall  be  represented  by  coupon  stamps,  and  the 
Laws  appiica- provisions  of  existing  laws  governing  the  engraving,  issue, 
sale,  accountability,  effacement,  and  destruction  of 
stamps  relating  to  tobacco  and  snuff  shall,  so  far  as  ap- 
plicable, be  made  to  apply  to  stamps  provided  in  this  sec- 
tion: Provided,  That  when  mixed  flour,  on  the  manufac- 
ture and  sale  of  which  the  tax  herein  imposed  has  been 
paid,  is  sold  and  then  repacked  without  the  addition  of 
Repacked,  not  any  other  material,  such  repacked  flour  shall  not  be  liable 
to  any  additional  tax;  but  the  packages  containing  such 
repacked  flour  shall  be  branded  or  marked  as  required  by 
the  provisions  of  section  thirty-seven  of  this  Act,  and  shall 
contain  the  card  provided  for  in  section  thirty-seven 
hereof;  and  in  addition  thereto  the  person,  firm,  or  cor- 
poration repacking  mixed  flour  shall  place  on  the  pack- 
ages containing  the  same  a  label  in  the  following  words: 
"Notice. — The  contents  of  this  package  have  been  taken 
from  a  regular  statutory  package,  upon  which  the  tax  has 
been  duly  paid."  Any  person  violating  the  provisions  of 
this  section  shall,  upon  conviction  thereof,  be  punished 
by  a  fine  of  not  less  than  two  hundred  and  fifty  dollars 
and  not  more  than  five  hundred  dollars,  or  by  imprison- 
ment not  to  exceed  one  year. 

Cartons  or  other  small  unstamped  packages  in  original  pack- 
ages, page  16,  Regulations,  No.  25. 

stamptSaTnt  of  ^EC-  41-  That  whenever  any  person,  firm,  or  corpora- 
tion sells,  consigns,  or  removes  for  sale,  consignment,  or 
consumption  any  mixed  flour  upon  which  the  tax  required 
by  this  Act  has  not  been  paid,  it  shall  be  the  duty  of  the 
Commissioner  of  Internal  Revenue,  for  a  period  of  not 
more  than  one  year  after  such  sale,  consignment,  or  re- 
moval, upon  satisfactory  proof,  to  estimate  the  amount 
of  tax  which  should  have  been  paid,  and  to  make  an  as- 
sessment therefor  and  certify  the  same  to  the  collector  of 
the  proper  district.  The  tax  so  assessed  shall  be  in  addi- 
tion to  the  penalties  imposed  by  this  Act  for  an  unau- 
thorized sale  or  removal. 

mixed  'flour*  tax     ^EC*  42,  That  all  mixed  flours,  imported  from  foreign 

thereon, etc.'     '  countries,  shall,  in  addition  to  any  import  duties  imposed 

thereon,  pay  an  internal  revenue  tax  equal  in  amount  to 


Notice. 


Penalty. 


MIXED   FLOUR.  313 

the  tax  imposed  under  section  forty  of  this  Act,  such  tax 
to  be  represented  by  coupon  stamps,  and  the  packages 
containing  such  imported  mixed  flour  shall  be  marked, 
branded,  labeled,  and  stamped  as  in  the  case  of  mixed 
flour  made  or  packed  in  the  United  States.  Any  person,  Penalty, 
firm,  or  corporation  purchasing  or  receiving  for  sale  or 
repacking  any  such  mixed  flour  which  has  not  been 
branded,  labeled,  or  stamped,  as  required  by  this  Act,  or 
which  is  contained  in  packages  which  have  not  been 
marked,  branded,  labeled,  or  stamped,  as  required  by  this 
Act,  shall,  upon  conviction,  be  fined  not  less  than  fifty 
dollars  nor  more  than  five  hundred  dollars. 

Sec.  43.  That  any  person,  firm,  or  corporation  know-  Penalty. 
ingly  purchasing  or  receiving  for  sale  or  for  repacking  and 
resale  any  mixed  flour  from  any  maker,  packer,  or  im- 
porter, who  has  not  paid  the  tax  herein  provided,  shall, 
for  each  offense,  be  fined  not  less  than  fifty  dollars,  and 
forfeit  to  the  United  States  all  the  articles  so  purchased  or 
received,  or  the  full  value  thereof. 

Sec.  44.  That  mixed  flour  may  be  removed  from  the  Removal  for  ex- 
place  of  manufacture  or  from  the  place  where  packed  for  p01 
export  to  a  foreign  country  without  payment  of  tax  or 
affixing  stamps  or  label  thereto,  under  such  regulation 
and  the  filing  of  such  bond  and  other  security  as  the  Com- 
missioner of  Internal  Revenue,  with  the  approval  of  the 
Secretary  of  the  Treasury,  may  prescribe.  Every  person, 
firm,  or  corporation  who  shall  export  mixed  flour  shall 
plainly  mark  on  each  package  containing  the.  same  the 
words  "mixed  flour,"  and  the  names  of  the  ingredients 
composing  the  same,  the  name  of  the  maker  or  packer, 
and  the  place  where  made  or  packed,  in  accordance  with 
the  provisions  of  sections  thirty-six  to  forty-five,  inclu- 
sive, of  this  Act. 

See  Regulations  No.  29  relative  to  all  exportations  under  Int. 
Rev.  Laws. 

Sec.  45.  That  whenever  any  package  containing  mixed  agfs™^7mpsade-" 
flour  is  emptied  it  shall  be  the  duty  of  the  person  in  whose  stroyed. 
possession  it  is  to  destroy  the  stamp  thereon.     Any  person    Penalty, 
disposing  of  such  package  without  first  having  destroyed 
the  stamp  or  mark  or  marks  thereon  shall,  upon  convic- 
tion, be  punished  by  a  fine  not  exceeding  the  sum  of 
twenty-five  dollars. 

Sec.  46.  That  all  fines,  penalties,  and  forfeitures  im-  e^atias recov" 
posed   by  section  thirty-six  to   section  forty-five,   both 
inclusive,  of  this  Act  ma}7  be  recovered  in  any  court  of 
competent  jurisdiction. 

Sec.  47.  That  the  Commissioner  of  Internal  Re  venue,.  cJSKtK.by 
with  the  approval  of  the  Secretary  of  the  Treasury,  shall 
make  all  needful  rules  and  regulations  for  carrying  into 
effect  the  provisions  relating  to  the  manufacture  and  sale 
of  mixed  flour,  being  section  thirty-five  to  section  forty- 
nine,  both  inclusive,  of  this  Act  (and  the  said  Commis- 
sioner of  Internal  Revenue,  by  and  with  the  approval  of 
the  Secretary  of  the  Treasury,  for  the  purpose  of  carrying 


314  MIXED   FLOUR. 

said  last-mentioned  provisions  of  this  Act  into  effect,  is 
hereby  authorized  to  employ  such  additional  clerks  and 
agents  as  may  be  necessary  for  that  purpose,  not  to  exceed 
twenty  in  number.) 

Regulations  No.  25  revised  August,  1907. 

The  provision  in  regard  to  employment  of  clerks  and  agents 
is  obsolete. 

As  to  agents,  see  Leg.  Ex.  and  Jud.  Appro.  Act  of  April  28, 1902, 
page  68. 

Penalty  for  sub-      SEC  48.  That  anv  person,  firm,  or  corporation  found 

sequent  violation.        Mj  „  i  i_  •    i    j.-  x  e 

guilty  ol  a  second  or  any  subsequent  violation  ol  any  oi 
the  provisions  of  section  thirty-six  to  section  forty -five, 
both  inclusive,  relating  to  the  manufacture  and  sale  of 
mixed  flour  as  aforesaid,  of  this  Act  shall,  in  addition  to 
the  penalties  herein  imposed,  be  imprisoned  not  less  than 
thirty  days  nor  more  than  ninety  days. 
Effective,  date  Sec.  49.  That  the  provisions  of  this  Act  relating  to  the 
when.  manufacture  and  sale  of  mixed  flour  shall  take  effect  and 

be  in  force  sixty  days  from  and  after  the  date  of  the  pas- 
sage of  this  Act;  and  all  packages  of  mixed  flour  found  on 
the  premises  of  any  person,  firm,  or  corporation  on  said 
day,  who  has  made,  packed,  or  repacked  the  same,  on 
which  the  tax  herein  authorized  has  not  been  paid,  shall 
be  deemed  taxable  under  the  provisions  of  section  thirty- 
six  to  section  forty-five,  both  inclusive,  of  this  Act,  and 
shall  be  taxed  and  have  affixed  thereon  such  marks, 
brands,  labels,  and  stamps  as  required  by  the  provisions 
of  said  sections  or  by  the  rules  and  regulations  prescribed 
bv  the  Commissioner  of  Internal  Revenue,  under  author- 
ity  of  this  Act. 


Chapter  Twelve. 

LEGACIES    AND    DISTRIBUTIVE    SHARES    OF    PERSONAL 

PROPERTY. 

[Sections  29  and  30.     Act  of  June  13,  1898.     (30  Stat.,  464.)] 

The  tax  on  legacies  (sec.  29)  was  repealed  by  section  7  of  the 
act  of  April  12,  1902  (32  Stat.,  96),  taking  effect  July  1,  1902. 

No  legacy  tax  accrued  where  the  testator  died  prior  to  the  act 
of  June  13,  1898.  (Penn.  Co.  for  Insurance  on  Lives  and  Grant- 
ing Annuities  v.  Collector  McClain,  105  Fed.  Rep.,  367,  T.  D. 
343.) 

Legacy  tax  constitutional.  (Knowlton  et  al.  v.  Moore,  col- 
lector, 178  U.  S.,  41;  T.  D.,  129,  1900.) 

Vanderbilt  v.  Eiclman.  (196  U.  S.,  480;  T.  D.,  868;  Decision  in 
United  States  circuit  court,  southern  district  of  N.  Y.,  121  Fed. 
Rep.,  590;  T.  D.,  No.  618.) 

SAVING    CLAUSE. 

Sec.  8.  [of  the  act  of  April  12,  1902  (32  Stat.,  96).]  That 
all  taxes  or  duties  imposed  by  section  twenty -nine  of  the 
Act  of  June  thirteenth,  eighteen  hundred  and  ninety- 
eight,  and  amendments  thereof,  prior  to  the  taking  effect 
of  this  Act,  shall  be  subject,  as  to  lien,  charge,  collection, 
and  otherwise,  to  the  provisions  of  section  thirty  of  said 
Act  of  June  thirteenth,  eighteen  hundred  and  ninety- 
eight,  and  amendments  thereof,  which  are  hereby  con- 
tinued in  force,  as  follows: 

"Sec.  30.  That  the  tax  or  duty  aforesaid  shall  be  due 
and  payable  in  one  year  after  the  death  of  the  testator 
and  shall  be  a  lien  and  charge  upon  the  propertv  of  every    Legacy  tax  a 

i  i.  £  •  i  £  j.  j_-\  lien  on  testator's 

person  who  may  die  as  aforesaid  tor  twenty  years,  or  until  property. 
the  same  shall,  within  that  period,  be  fully  paid  to  and 
discharged  by  the  United  States;  and  every  executor,  ad- 
ministrator, or  trustee  having  in  charge  or  trust  any 
legacy  or  distributive  share,  as  aforesaid,  shall  give  notice  ec^ic|tcby  ex" 
thereof,  in  writing,  to  the  collector  or  deputy  collector  of 
the  district  where  the  deceased  grantor  or  bargainer  last 
resided  within  thirty  days  after  he  shall  have  taken  charge 
of  such  trust,  and  every  executor,  administrator,  or  trus- 
tee, before  payment  and  distribution  to  the  legatees,  or 
any  parties  entitled  to  beneficial  interest  therein,  shall  pay  Payment. 
to  the  collector  or  deputy  collector  of  the  district  of  which 
the  deceased  person  was  a  resident,  or  in  which  the  prop- 
erty was  located  in  case  of  nonresidents,  the  amount  of 
the  duty  or  tax  assessed  upon  such  legacy  or  distributive 
share,  and  shall  also  make  and  render  to  the  said  collector 

315 


316 


LEGACIES   AND   DISTRIBUTIVE    SHARES. 


schedules,  etc.  or  deputy  collector  a  schedule,  list,  or  statement,  in  dupli- 
cate, of  the  amount  of  such  legacy  or  distributive  share, 
together  with  the  amount  of  duty  which  has  accrued,  or 
shall  accrue,  thereon,  verified  by  his  oath  or  affirmation, 
to  be  administered  and  certified  thereon  by  some  magis- 
trate or  officer  having  lawful  power  to  administer  such 
oaths,  in  such  form  and  manner  as  may  be  prescribed  by 
the  Commissioner  of  Internal  Revenue,  which  schedule, 
list,  or  statement  shall  contain  the  names  of  each  and 
every  person  entitled  to  any  beneficial  interest  therein, 
together  with  the  clear  value  of  such  interest,  the  dupli- 
cate of  which  schedule,  list,  or  statement  shall  be  by  him 
immediately  delivered,  and  the  tax  thereon  paid  to  such 
collector;  and  upon  such  payment  and  delivery  of  such 
schedule,  list,  or  statement  said  collector  or  deputy  col- 
lector shall  grant  to  such  person  paying  such  duty  or  tax 
Receipts.  a  receipt  or  receipts  for  the  same  in  duplicate,  which  shall 
be  prepared  as  hereinafter  provided.  Such  receipt  or 
receipts,  duly  signed  and  delivered  by  such  collector  or 
deputy  collector,  shall  be  sufficient  evidence  to  entitle 
such  executor,  administrator,  or  trustee  to  be  credited  and 
allowed  such  payment  by  every  tribunal  which,  by  the 
laws  of  any  State  or  Territory,  is,  or  may  be,  empowered 
to  decide  upon  and  settle  the  accounts  of  executors  and 
administrators.  And  in  case  such  executor,  administra- 
tor, or  trustee  shall  refuse  or  neglect  to  pay  the  aforesaid 
duty  or  tax  to  the  collector  or  deputy  collector,  as  afore- 
said, within  the  time  hereinbefore  provided,  or  shall  neg- 
lect or  refuse  to  deliver  to  said  collector  or  deputy  collec- 
tor the  duplicate  of  the  schedule,  list,  or  statement  of  such 
legacies,  property,  or  personal  estate,  under  oath,  as  afore- 
said, or  shall  neglect  or  refuse  to  deliver  the  schedule,  list, 
or  statement  of  such  legacies,  property,  or  personal  estate, 
under  oath,  as  aforesaid,  or  shall  deliver  to  said  collector 
or  deputy  collector  a  false  schedule  or  statement  of  such 
legacies,  property,  or  personal  estate,  or  give  the  names 
Assessment,  and  relationship  of  the  persons  entitled  to  beneficial  inter- 
on'faiiure0ofCex- ests  therein  untruly,  or  shall  not  truly  and  correctly  set 
ecutor,  etc.  forth  and  state  therein  the  clear  value  of  such  beneficial 
interest,  or  where  no  administration  upon  such  property 
or  personal  estate  shall  have  been  granted  or  allowed 
under  existing  laws,  the  collector  or  deputy  collector  shall 
make  out  such  lists  and  valuation  as  in  other  cases  of  neg- 
lect or  refusal,  and  shall  assess  the  duty  thereon;  and  the 
Legal  proceed- collector  shall  commence  appropriate  proceedings  before 
ings  to  recover.  any  court  0f  the  United  States,  in  the  name  of  the  United 
States,  against  such  person  or  persons  as  may  have  the 
actual  or  constructive  custody  or  possession  of  such  prop- 
erty or  personal  estate,  or  any  part  thereof,  and  shall  sub- 
ject such  property  or  personal  estate,  or  any  portion  of  the 
same,  to  be  sold  upon  the  judgment  or  decree  of  such 
court,  and  from  the  proceeds  of  such  sale  the  amount  of 
such  tax  or  duty,  together  with  all  costs  and  expenses  of 
every  description  to  be  allowed  by  such  court,  shall  be  first 


LEGACIES  AND   DISTRIBUTIVE   SHARES.  317 

paid,  and  the  balance,  if  any,  deposited  according  to  the 
order  of  such  court,  to  be  paid  under  its  direction  to  such 
person  or  persons  as  shall  establish  title  to  the  same.  The 
deed  or  deeds,  or  any  proper  conveyance  of  such  property 
or  personal  estate,  or  any  portion  thereof,  so  sold  under 
such  judgment  or  decree,  executed  by  the  officer  lawfully 
charged  with  carrying  the  same  into  effect,  shall  vest  in 
the  purchaser  thereof  all  the  title  of  the  delinquent  to  the  pUrci!aserested  m 
property  or  personal  estate  sold  under  and  by  virtue  of 
such  judgment  or  decree,  and  shall  release  every  other 
portion  of  such  property  or  personal  estate  from  the  lien 
or  charge  thereon  created  by  this  Act.  And  every  person 
or  persons  who  shall  have  in  his  possession,  charge,  or 
custody  any  record,  file,  or  paper  containing,  or  supposed 
to  contain,  any  information  concerning  such  property  or 
personal  estate,  as  aforesaid,  passing  from  any  person  who 
may  die,  as  aforesaid,  shall  exhibit  the  same  at  the  request  papers!  etc°n  °f 
of  the  collector  or  deputy  collector  of  the  district,  and  to 
any  law  officer  of  the  United  States,  in  the  performance  of 
his  duty  under  this  Act,  his  deputy  or  agent,  who  may 
desire  to  examine  the  same.  And  if  any  such  person,  Penalty  for  re- 
having  in  his  possession,  charge,  or  custody  any  such  rec- 
ords, files,  or  papers,  shall  refuse  or  neglect  to  exhibit  the 
same  on  request,  as  aforesaid,  he  shall  forfeit  and  pay  the 
sum  of  five  hundred  dollars:  Provided,  That  in  all  legal  Provisos- 
controversies  where  such  deed  or  title  shall  be  the  subject 
of  judicial  investigation,  the  recital  in  said  deed  shall  be  Effect  of  recital 
prima  facie  evidence  of  its  truth,  and  that  the  require- 
ments of  the  law  had  been  complied  with  by  the  officers  of 
the  Government:  And  provided  further,  That  in  case  of  lec^nf"yforneg" 
willful  neglect,  refusal,  or  false  statement  by  such  executor, 
administrator,  or  trustee,  as  aforesaid,  he  shall  be  liable  to 
a  penalty  of  not  exceeding  one  thousand  dollars,  to  be 
recovered  with  costs  of  suit.  Any  tax  paid  under  the  pro-  Deductlon- 
visions  of  sections  twenty-nine  and  thirty  shall  be  de- 
ducted from  the  particular  legacy  or  distributive  share  on 
account  of  which  the  same  is  charged. 

Effect  of  the  repealing  act, — The  war  revenue  act  of  June  13, 
1898,  as  amended,  provided  for  a  tax  on  legacies  to  become  due 
and  payable  in  one  year  after  the  death  of  the  testator,  and  to  be 
a  lien  and  charge  on  his  property  for  20  years. 

Such  provisions  were  repealed  by  the  act  of  April  12,  1902, 
with  a  saving  clause  as  to  all  taxes  imposed  thereby  prior  to  July 
1,  1902,  when  the  repeal  took  effect. 

The  act  of  June  27,  1902,  prohibited  the  further  assessment  or 
imposition  of  any  tax  under  said  act  "upon  or  in  respect  of  any 
contingent  beneficial  interest  which  shall  not  become  absolutely 
vested  in  possession  or  enjoyment"  prior  to  July  1,  1902,  and 
required  the  refunding  of  taxes  previously  collected  on  any  such 
interests.  Held,  that  where  a  testator  who  died  in  December, 
1901,  bequeathed  a  share  of  his  residuary  estate  in  trust,  the 
income  to  be  paid  to  a  son  during  his  life,  the  life  estate  of  the 
son  in  the  income  of  the  trust  property  became  absolutely  vested 
in  enjoyment  at  once  on  the  death  of  the  testator,  and  subject 
to  the  tax;  that  the  tax  was  "imposed"  by  the  statute  itself  at 
the  time  of  such  vesting  without  reference  to  the  time  when  it 
became  due  and  payable  or  to  any  act  of  assessment  by  the 
internal  revenue  officers,  which  was  merely  an  administrative 


318  LEGACIES    AND   DISTRIBUTIVE    SHARES. 

detail  necessary  to  fix  the  amount  but  not  affecting  the  time 
when  the  tax  was  imposed  or  became  a  lien.  (Westhus  et  al.  v. 
Union  Trust  Co.,  164  Fed.  Rep.,  795;  168  Fed.  Rep.,  617;  pe- 
tition for  rehearing  denied.  Contra  Lynch  v.  Union  Trust  Co., 
164  Fed.  Rep.,  161.) 

The  fact  that  the  testator  dies  within  one  year  prior  to  the  tak- 
ing effect  of  the  repealing  act  of  April  12,  1902,  does  not  relieve 
from  taxation  legacies  otherwise  taxable  under  sections  29  and 
30  of  the  act  of  June  13,  1898,  as  amended  by  the  act  of  March  2, 
1901,  being  saved  by  the  saving  clause  of  the  repealing  act. 
(Hertz,  Collector,  v.  Woodman  (218  U.S.,  205),  T.  D.  1636, 
overruling  decision  in  Eidman  v.  Tilghman  (136  Fed.  Rep.,  141).) 

In  Disston  v.  McClain,  collector  (1906),  it  was  held  that  an 
annuity  passing  as  a  legacy  prior  to  repeal  of  the  act,  payable 
in  quarterly  installments  out  of  the  income  of  personal  property 
during  the  life  of  the  beneficiary  was  taxable,  only  as  to  so  much 
of  the  income  as  was  vested  in  the  actual  possession  of  the  leg- 
atee prior  to  the  1st  day  of  July,  1902,  when  the  law  was  repealed. 
(147  Fed.  Rep.,  114,  reversing  143  Fed.  Rep.,  191;  T.  D.  976). 

A  petition  was  filed  in  the  Lnited  States  Supreme  Court  for  a 
writ  of  certiorari  in  this  case,  but  the  court  refused  to  issue  the 
writ.     (207  U.  S.,  587.) 

REFUND  OF  TAX  ON  LEGACIES  AND  BEQUESTS  FOR  USES  OF 
A  RELIGIOUS,  CHARITABLE,  OR  EDUCATIONAL  CHAR- 
ACTER; REFUND  OF  TAX  ON  CONTINGENT  BENEFICIAL 
INTERESTS,  WHICH  HAD  NOT  BECOME  VESTED  JULY  1, 
1902. NO  TAX  TO  BE  ASSESSED  ON  CONTINGENT  BENE- 
FICIAL   INTERESTS    NOT   VESTED   JULY    1,    1902. 

AN  ACT  To  provide  for  refunding  taxes  paid  upon  legacies  and  bequests 
for  uses  of  a  religious,  charitable,  or  educational  character,  for  the 
encouragement  of  art,  and  so  forth,  under  the  Act  of  June  thirteenth, 
eighteen  hundred  and  ninety-eight,  and  for  other  purposes,  approved 
June  27,  1902.     (32  Stat.,  406.) 

Sec.  1.  That  the  Secretary  of  the  Treasury,  under 
appropriate  rules  and  regulations  to  be  prescribed  by  him, 
be,  and  he  is  hereby,  authorized  and  directed  to  pay,  out 
of  any  money  in  the  Treasury  not  otherwise  appropriated, 
to  the  corporations,  associations,  societies,  or  individuals 
as  trustees  or  executors,  such  sums  of  money  as  have  been 
paid  by  them  as  taxes  upon  bequests  or  legacies  for  uses 
of  a  religious,  literary,  charitable,  or  educational  character, 
or  for  the  encouragement  of  art,  or  legacies  or  bequests 
to  societies  for  the  prevention  of  cruelty  to  children, 
under  the  provisions  of  section  twenty-nine  of  the  Act 
entitled  "An  Act  to  provide  ways  and  means  to  meet  war 
expenditures,  and  for  other  purposes, "  approved  June 
thirteenth,  eighteen  hundred  and  ninety-eight. 

Sec.  2.   (See  p.  340.) 

Sec.  3.  That  in  all  cases  where  an  executor,  adminis- 
trator, or  trustee  shall  have  paid,  or  shall  hereafter  pay, 
any  tax  upon  any  legacy  or  distributive  share  of  personal 
property  under  the  provisions  of  the  act  approved  June 
thirteenth,  eighteen  hundred  and  ninety-eight,  entitled 
"An  Act  to  provide  ways  and  means  to  meet  war  expend- 
itures, and  for  other  purposes,"  and  amendments  thereof, 
the  Secretary  of  the  Treasury  be,  and  he  is  hereby, 
authorized  and  directed  to  refund,  out  of  any  money  in 


LEGACIES   AND    DISTRIBUTIVE    SHARES.  319 

the  Treasury  not  otherwise  appropriated,  upon  proper 
application  being  made  to  the  Commissioner  of  Internal 
Revenue,  under  such  rules  and  regulations  as  may  be 
prescribed,  so  much  of  said  tax  as  may  have  been  col- 
lected on  contingent  beneficial  interests  which  shall  not 
have  become  vested  prior  to  July  first,  nineteen  hundred 
and  two.  And  no  tax  shall  hereafter  be  assessed  or  im- 
posed under  said  Act  approved  June  thirteenth,  eighteen 
hundred  and  ninety-eight,  upon  or  in  respect  of  any  con- 
tingent beneficial  interest  which  shall  not  become  abso- 
lutely vested  in  possession  or  enjoyment  prior  to  said 
July  first,  nineteen  hundred  and  two. 

^  %  %  %:  ^< 

Circular  No.  627,  relative  to  refunding  legacy  taxes  as  provided 
in  the  first  paragraph.    July  3,  1902.     T.  D.  No.  543. 

The  act  of  June  27,  1902,  relative  to  the  refund  of  tax  collected 
on  contingent  beneficial  interests  not  vested  prior  to  July  1, 
fixes  no  time  within  which  the  claim  for  refund  must  be  filed 
with  the  collector. 

If  the  two  years'  limit  is  applicable  under  section  3228,  R.  S., 
it  must  be  two  years  from  the  passage  of  the  act  and  not  two 
years  from  payment  of  the  tax.  Thacher  v.  United  States. 
(United  States  Circuit  Court,  District  of  Massachusetts,  149  Fed. 
Rep.,  902;  26  Op.  Atty.  Gen.,  194.) 

Attorney  General's  opinion  as  to  vested  interests,  August  1, 
1902.  (T.  D.  570,  modifying  Circular  No.  630,  T.  D.  552;  24  Op. 
Atty.  Gen.,  98.) 


Chapter  Thirteen. 
SPECIAL    EXCISE    TAX     ON     CORPORATIONS. 


[Sec.  38,  act  of  August  5,  1909.     (36  Stat.,  112.)] 


Sec. 

38.  Excise  tax  on  corporations;  rate  of 
tax;  organizations  excepted. 

Second.  Net  income;  how  deter- 
mined. 

Third.  Annual  returns  required 
from  officers  of  corporations; 
computation  of  tax. 

Fourth.  Procedure  when  returns 
are  incorrect;  failure  to  make 
returns ;  books  may  be  examined ; 
attendance  of  witnesses  com- 
pelled. 

Fifth.  Assessment  of  tax;  addition 
to  tax  for  false  returns;  payment 
of  tax;  penalty  for  failure  to  pay; 
notice;  limitation;  penalty;  in- 
terest. 

Sixth.  Returns  to  be  filed  in  office 
of  Commissioner  of  Internal 
Revenue. 


Sec. 

38.  Excise  tax,  etc. — Continued. 

Seventh.  Government  officer  or 
employee  divulging  information; 
penalty. 

Eighth.  Failure  to  make  true  re- 
turns; false  returns;  penalty; 
revenue  laws  made  applicable 
for  collection,  etc.,  of  tax;  juris- 
diction United  States  courts  to 
compel  testimony  and  produc- 
tion of  books,  etc. 

Act  of  June  17,  1910  (36  Stat., 
494 ) .  Appropriation  for  expenses 
of  collecting  corporation  tax.  Re- 
lurns  open  to  inspection  by  order 
of  the  President. 

Act  of  June  25,  1910  (36  Stat., 
780).  Additional  employees  au- 
thorized. 


Corpor  ations 
subject  to  tax. 
(36  Stat.  112.; 


Rate. 


Sec.  38.  [Act  of  Aug.  5,  1909.]  That  every  corpora- 
tion, joint  stock  company  or  association,  organized  for 
profit  and  having  a  capital  stock  represented  by  shares, 
and  every  insurance  company,  now  or  hereafter  organized 
under  the  laws  of  the  United  States  or  of  any  State  or 
Territory  of  the  United  States  or  under  the  Acts  of  Con- 
gress applicable  to  Alaska  or  the  District  of  Columbia,  or 
now  or  hereafter  organized  under  the  laws  of  any  foreign 
country  and  engaged  in  business  in  any  State  or  Territory 
of  the  United  States  or  in  Alaska  or  in  the  District  of  Co- 
lumbia, shall  be  subject  to  pay  annually  a  special  excise 
tax  with  respect  to  the  carrying  on  or  doing  business  by 
such  corporation,  joint  stock  company  or  association,  or 
insurance  company,  equivalent  to  one  per  centum  upon 
the  entire  net  income  over  and  above  five  thousand  dol- 
lars received  by  it  from  all  sources  during  such  year,  ex- 
clusive of  amounts  received  by  it  as  dividends  upon  stock 
of  other  corporations,  joint  stock  companies  or  associa- 
tions, or  insurance  companies,  subject  to  the  tax  hereby 
imposed;  or  if  organized  under  the  laws  of  any  foreign 
country,  upon  the  amount  of  net  income  over  and  above 
five  thousand  dollars  received  by  it  from  business  trans- 
acted and  capital  invested  within  the  United  States  and  its 
Territories,  Alaska,  and  the  District  of  Columbia  during 

320 


EXCISE    TAX    ON    CORPORATIONS.  321 

such  year,  exclusive  of  amounts  so  received  by  it  as  divi- 
dends upon  stock  of  other  corporations,  joint  stock  com- 
panies or  associations,  or  insurance  companies,  subject  to 
the  tax  hereby  imposed :  Provided,  liowever,  That  nothing ^^c or p orations 
in  this  section  contained  shall  apply  to  labor,  agricultural63 
or  horticultural  organizations,  or  to  fraternal  beneficiary 
societies,  orders,  or  associations  operating  under  the  lodge 
system,  and  providing  for  the  payment  of  life,  sick,  acci- 
dent, and  other  benefits  to  the  members  of  such  societies, 
orders,  or  associations,  and  dependents  of  such  members, 
nor  to  domestic  building  and  loan  associations,  organized 
and  operated  exclusively  for  the  mutual  benefit  of  their 
members,  nor  to  any  corporation  or  association  organ- 
ized and  operated  exclusively  for  religious,  charitable, 
or  educational  purposes,  no  part  of  the  net  income  of 
which  inures  to  the  benefit  of  any  private  stockholder 
or  individual. 

Second.  Such  net  income  shall  be  ascertained  by  de-  h^scll\l^; 
ducting  from  the  gross  amount  of  the  income  of  such  cor- 
poration, joint  stock  company  or  association,  or  insurance 
company,  received  within  the  year  from  all  sources,  (first) 
all  the  ordinary  and  necessary  expenses  actually  paid 
within  the  year  out  of  income  in  the  maintenance  and 
operation  of  its  business  and  properties,  including  all 
charges  such  as  rentals  or  franchise  payments,  required 
to  be  made  as  a  condition  to  the  continued  use  or  pos- 
session of  property;  (second)  all  losses  actually  sustained 
within  the  year  and  not  compensated  by  insurance  or 
otherwise,  including  a  reasonable  allowance  for  deprecia- 
tion of  property,  if  any,  and  in  the  case  of  insurance  com- 
panies the  sums  other  than  dividends,  paid  within  the 
year  on  policy  and  annuity  contracts  and  the  net  addition, 
if  any,  required  by  law  to  be  made  within  the  year  to 
reserve  funds;  (third)  interest  actually  paid  within  the 
3Tear  on  its  bonded  or  other  indebtedness  to  an  amount  of 
such  bonded  and  other  indebtedness  not  exceeding  the 
paid-up  capital  stock  of  such  corporation,  joint  stock  com- 
pany or  association,  or  insurance  company,  outstanding 
at  the  close  of  the  year,  and  in  the  case  of  a  bank,  banking 
association  or  trust  company,  all  interest  actually  paid  by 
it  within  the  year  on  deposits;  (fourth)  all  sums  paid  by 
it  within  the  year  for  taxes  imposed  under  the  authority 
of  the  United  States  or  of  any  State  or  Territory  thereof, 
or  imposed  by  the  government  of  any  foreign  country  as 
a  condition  to  carrying  on  business  therein;  (fifth)  all 
amounts  received  by  it  within  the  year  as  dividends  upon 
stock  of  other  corporations,  joint  stock  companies  or  asso- 
ciations, or  insurance  companies,  subject  to  the  tax  hereby 
imposed:  Provided,  That  in  the  case  of  a  corporation,    Foreign  corpo- 

•     .*  ,  i  •     ■■  •  x  „     '  rations;       deduc- 

joint  stock  company  or  association,  or  insurance  company,  tions  allowable. 
organized  under  the  laws  of  a  foreign  country,  sucii  net 
income  shall  be  ascertained  by  deducting  from  the  gross 
amount   of  its   income   received  within   the   year   from 

72170°— 11 21 


322  EXCISE    TAX    OX    CORPORATIONS. 

business  transacted  and  capital  invested  within  the 
United  States  and  any  of  its  Territories,  Alaska,  and  the 
District  of  Columbia,  (first)  all  the  ordinary  and  necessary 
expenses  actually  paid  within  the  year  out  of  earnings  in 
the  maintenance  and  operation  of  its  business  and  prop- 
erty within  the  United  States  and  its  Territories,  Alaska, 
and  the  District  of  Columbia,  including  all  charges  such 
as  rentals  or  franchise  payments  required  to  be  made  as 
a  condition  to  the  continued  use  or  possession  of  property ; 
(second)  all  losses  actually  sustained  within  the  year  in 
business  conducted  by  it  within  the  United  States  or  its 
Territories,  Alaska,  or  the  District  of  Columbia  not  com- 
pensated by  insurance  or  otherwise,  including  a  reasonable 
allowance  for  depreciation  of  property,  if  any,  and  in  the 
case  of  insurance  companies  the  sums  other  than  divi- 
dends, paid  within  the  year  on  policy  and  annuity  con- 
tracts and  the  net  addition,  if  any,  required  by  law  to  be 
made  within  the  year  to  reserve  funds;  (third)  interest 
actually  paid  within  the  year  on  its  bonded  or  other 
indebtedness  to  an  amount  of  such  bonded  and  other 
indebtedness,  not  exceeding  the  proportion  of  its  paid-up 
capital  stock  outstanding  at  the  close  of  the  year  which 
the  gross  amount  of  its  income  for  the  year  from  business 
transacted  and  capital  invested  within  the  United  States 
and  any  of  its  Territories,  Alaska,  and  the  District  of 
Columbia  bears  to  the  gross  amount  of  its  income  derived 
from  all  sources  within  and  without  the  United  States; 
(fourth)  the  sums  paid  by  it  within  the  year  for  taxes 
imposed  under  the  authority  of  the  United  States  or  of  any 
State  or  Territory  thereof;  (fifth)  all  amounts  received 
by  it  within  the  year  as  dividends  upon  stock  of  other 
corporations,  joint  stock  companies  or  associations,  and 
insurance  companies,  subject  to  the  tax  hereby  imposed. 

insurance Scompa-  In  the  case  of  assessment  insurance  companies  the  actual 

mes,  reserve  deposit  of  sums  with  State  or  Territorial  officers,  pursuant 
to  law,  as  additions  to  guaranty  or  reserve  funds  shall  be 
treated  as  being  payments  required  by  law  to  reserve 
funds. 

^specific  deduc-  Third.  There  shall  be  deducted  from  the  amount  of  the 
net  income  of  each  of  such  corporations,  joint  stock  com- 
panies or  associations,  or  insurance  companies,  ascer- 
tained as  provided  in  the  foregoing  paragraphs  of  this 
section,  the  sum  of  five  thousand  dollars,  and  said  tax 
computation  ot shall  be  computed  upon  the  remainder  of  said  net  in- 
come of  such  corporation,  joint  stock  company  or  associa- 
tion, or  insurance  company,  for  the  year  ending  December 
thirty-first,  nineteen  hundred  and  nine,  and  for  each  cal- 
endar year  thereafter;  and  on  or  before  the  first  day  of 
March,  nineteen  hundred  and  ten,  and  the  first  day  of 

,  I::',"r"  r\°  fb"  March  in  each  year  thereafter,  a  true  and  accurate  return 

ina'Ii'  on  or  before  .  .  /x»  •  e  • 

March i  to couec- under  oath  or  affirmation  ol  its  president,  vice-president, 
or  other  principal  officer,  and  its  treasurer  or  assistant 
treasurer,  shall  be  made  by  each  of  the  corporations,  joint 
stock  companies  or  associations,  and  insurance  companies, 


EXCISE  TAX  ON  CORPORATIONS.  323 

subject  to  the  tax  imposed  by  this  section,  to  the  collector 
of  internal  revenue  for  the  district  in  which  such  corpora- 
tion, joint  stock  company  or  association,  or  insurance 
company,  has  its  principal  place  of  business,  or,  in  the  case 
of  a  corporation,  joint  stock  company  or  association,  or 
insurance  company,  organized  under  the  laws  of  a  foreign 
country,  in  the  place  where  its  principal  business  is  carried 
on  within  the  United  States,  in  such  form  as  the  Commis- 
sioner of  Internal  Revenue,  with  the  approval  of  the  Sec- 
retary of  the  Treasury,  shall  prescribe,  setting  forth  (first)  items  to  be  re- 
the  total  amount  of  the  paid-up  capital  stock  of  such  cor-po' 
poration,  joint  stock  company  or  association,  or  insurance 
company,  outstanding  at  the  close  of  the  year;  (second) 
the  total  amount  of  the  bonded  and  other  indebtedness  of 
such  corporation,  joint  stock  compan}r  or  association,  or 
insurance  company  at  the  close  of  the  year;  (third)  the 
gross  amount  of  the  income  of  such  corporation,  joint 
stock  company  or  association,  or  insurance  company, 
received  during  such  year  from  all  sources,  and  if  organ- 
ized under  the  laws  of  a  foreign  country  the  gross  amount 
of  its  income  received  within  the  year  from  business  trans- 
acted and  capital  invested  within  the  United  States  and 
any  of  its  Territories,  Alaska,  and  the  District  of  Colum- 
bia; also  the  amount  received  by  such  corporation,  joint 
stock  company  or  association,  or  insurance  company, 
within  the  year  by  way  of  dividends  upon  stock  of  other 
corporations,  joint  stock  companies  or  associations,  or 
insurance  companies,  subject  to  the  tax  imposed  by  this 
section;  (fourth)  the  total  amount  of  all  the  ordinary  and 
necessary  expenses  actually  paid  out  of  earnings  in  the  Deductions  ai 
maintenance  and  operation  of  the  business  and  properties  penses. ' 
of  such  corporation,  joint  stock  company  or  association, or 
insurance  company,  within  the  year,  stating  separately  all 
charges  such  as  rentals  or  franchise  payments  required  to 
be  made  as  a  condition  to  the  continued  use  or  possession 
of  property,  and  if  organized  under  the  laws  of  a  foreign 
country  the  amount  so  paid  in  the  maintenance  and  oper- 
ation of  its  business  within  the  United  States  and  its  Ter- 
ritories, Alaska,  and  the  District  of  Columbia;  (fifth)  the 
total  amount  of  all  losses  actuallv  sustained  during  the    Losses  actually 

,  i    i         •  •        sustained.       De- 

year  and  not  compensated   by  insurance  or  otherwise,  preciation. 

stating  separately  any  amounts  allowed  for  depreciation 
of  property,  and  in  the  case  of  insurance  companies  the 
sums  other  than  dividends,  paid  within  the  year  on  policy 
and  annuity  contracts  and  the  net  addition,  if  any,  re- 
quired by  law  to  be  made  within  the  year  to  reserve  funds; 
and  in  the  case  of  a  corporation,  joint  stock  company  or 
association,  or  insurance  company,  organized  under  the 
laws  of  a  foreign  country,  all  losses  actually  sustained  by 
it  during  the  year  in  business  conducted  by  it  within  the 
United  States  or  its  Territories,  Alaska,  and  the  District  of 
Columbia,  not  compensated  by  insurance  or  otherwise, 
stating  separately  any  amounts  allowed  for  depreciation  of 
property,  and  in  the  case  of  insurance  companies  the  sums 


324  EXCISE   TAX   OX    CORPORATIONS. 

other  than  dividends,  paid  within  the  year  on  policy  and 
annuity  contracts  and  the  net  addition,  if  any,  required 
by  law  to  be  made  within  the  year  to  reserve  fund ;   (sixth) 
i  Inafdest  actua1'  the  amount  of  interest  actually  paid  within  the  year  on  its 
bonded  or  other  indebtedness  to  an  amount  of  such  bonded 
and  other  indebtedness  not  exceeding  the  paid-up  capital 
stock  of  such  corporation,  joint  stock  compan}^  or  asso- 
ciation, or  insurance  company,  outstanding  at  the  close  of 
the  year,  and  in  the  case  of  a  bank,  banking  association  or 
trust  company,  stating  separately  all  interest  paid  by  it 
byfoS  co^pcf-  wi.tnin  the  year  on  deposits;   or  in  case  of  a  corporation, 
rations  to  be  ap- joint  stock  company  or  association,  or  insurance  company, 
portioned.  organized  under  the  laws  of  a  foreign  country,  interest  so 

paid  on  its  bonded  or  other  indebtedness  to  an  amount  of 
such  bonded  and  other  indebtedness  not  exceeding  the 
proportion  of  its  paid-up  capital  stock  outstanding  at  the 
close  of  the  year,  which  the  gross  amount  of  its  income  for 
the  year  from  business  transacted  and  capital  invested 
within  the  United  States  and  any  of  its  Territories, 
Alaska,  and  the  District  of  Columbia,  bears  to  the  gross 
amount  of  its  income  derived  from  all  sources  within  and 
Taxes  paid,  without  the  United  States;  (seventh)  the  amount  paid 
by  it  within  the  year  for  taxes  imposed  under  the  author- 
ity of  the  United  States  or  any  State  or  Territory  thereof, 
and  separately  the  amount  so  paid  by  it  for  taxes  imposed 
by  the  government  of  any  foreign  country  as  a  condition 
to  carrying  on  business  therein;  (eighth)"  the  net  income 
of  such  corporation,  joint  stock  company  or  association,  or 
insurance  company,  after  making  the  deductions  in  this 
section  authorized.  All  such  returns  shall  as  received  be 
transmitted  forthwith  by  the  collector  to  the  Commis- 
sioner of  Internal  Revenue. 
may0requfrSe0Dinr-  Fourth.  Whenever  evidence  shall  be  produced  before 
fonhation  as  to  the  Commissioner  of  Internal  Revenue  which  in  the  opin- 
quenTretmn.6  m"ion  of  the  Commissioner  justifies  the  belief  that  the  return 
made  by  any  corporation,  joint  stock  company  or  associa- 
tion, or  insurance  company,  is  incorrect,  or  whenever  any 
collector  shall  report  to  the  Commissioner  of  Internal 
Revenue  that  any  corporation,  joint  stock  company  or 
association,  or  insurance  company,  has  failed  to  make  a 
return  as  required  by  law,  the  Commissioner  of  Internal 
Revenue  may  require  from  the  corporation,  joint  stock 
company  or  association,  or  insurance  company  making 
such  return,  such  further  information  with  reference  to 
its  capital,  income,  losses,  and  expenditures  as  he  may 
Reve  deem    expedient;     and    the    Commissioner    of    Internal 

to elSI  books!  Revenue,  for  the  purpose  of  ascertaining  the  correctness 
etc-  of  such  return  or  for  the  purpose  of  making  a  return 

where  none  has  been  made,  is  hereby  authorized,  by  any 
regularly  appointed  revenue  agent  specially  designated 
by  him  for  that  purpose,  to  examine  any  books  and  papers 
bearing  upon  the  matters  required  to  be  included  in  the 
return  of  such  corporation,' joint  stock  company  or  asso- 
ciation, or  insurance  company,  and  to  require  the  attend- 


EXCISE  TAX  ON  CORPORATIONS.  325 

ance  of  any  officer  or  employee  of  such  corporation,  joint 

stock  company  or  association,  or  insurance  company,  and 

to    take    his    testimony    with    reference    to    the   matter 

required  by  law  to  be  included  in  such  return,  with  power 

to  administer  oaths  to  such  person  or  persons;    and  the 

Commissioner  of  Internal  Revenue  may  also  invoke  the 

aid  of  any  court  of  the  United  States  having  jurisdiction 

to  require  the  attendance  of  such  officers  or  employees  and 

the  production  of  such  books   and  papers.     Upon  the 

information   so   acquired   the   Commissioner  of   Internal 

Revenue  may  amend  any  return  or  make  a  return  where  m£om™^sioner 

none   has   been  made.     All   proceedings   taken  by   the  make  return. 

Commissioner  of  Internal  Revenue  under  the  provisions 

of  this  section  shall  be  subject  to  the  approval  of  the 

Secretary  of  the  Treasury. 

Fifth.  All  returns  shall  be  retained  by  the  Commis- „/%£$$&?£. 
sioner  of  Internal  Revenue,  who  shall  make  assessments  turn, 
thereon;  and  in  case  of  any  return  made  with  false  or 
fraudulent  intent,  he  shall  add  one  hundred  per  centum  of 
such  tax,  and  in  case  of  a  refusal  or  neglect  to  make  a 
return  or  to  verify  the  same  as  aforesaid  he  shall  add  fifty 
per  centum  of  such  tax.     In  case  of  neglect  occasioned  by    collector   may 

li  •    i  i  ■>  rr>  pi  i  •  extend    tune    for 

the  sickness  or  absence  01  an  omcer  01  such  corporation,  making  return. 
joint  stock  company  or  association,  or  insurance  company, 
required  to  make  said  return,  or  for  other  sufficient  reason, 
the  collector  may  allow  such  further  time  for  making  and 
delivering  such  return  as  he  may  deem  necessary,  not 
exceeding  thirty  days.  The  amount  so  added  to  the  tax  Penalty,  when 
shall  be  collected  at  the  same  time  and  in  the  same  nian_andhowcollec 
ner  as  the  tax  originally  assessed  unless  the  refusal, 
neglect,  or  falsity  is  discovered  after  the  date  for  payment 
of  said  taxes,  in  which  case  the  amount  so  added  shall  be 
paid  by  the  delinquent  corporation,  joint  stock  company 
or  association,  or  insurance  company,  immediately  upon 
notice  given  by  the  collector.  All  assessments  shall  be  Notification 
made  and  the  several  corporations,  joint  stock  companies 
or  associations,  or  insurance  companies,  shall  be  notified 
of  the  amount  for  which  they  are  respectively  liable  on  or 
before  the  first  day  of  June  of  each  successive  year,  and 
said  assessments  shall  be  paid  on  or  before  the  thirtieth 
day  of  June,  except  in  cases  of  refusal  or  neglect  to  make 
such  return,  and  in  cases  of  false  or  fraudulent  returns, 
in  which  cases  the  Commissioner  of  Internal  Revenue 
shall,  upon  the  discovery  thereof,  at  any  time  within  three 
years  after  said  return  is  due,  make  a  return  upon  infor- 
mation obtained  as  above  provided  for,  and  the  assess- 
ment made  by  the  Commissioner  of  Internal  Revenue 
thereon  shall  be  paid  by  such  corporation,  joint  stock 
company  or  association,  or  insurance  company  imme- 
diately upon  notification  of  the  amount  of  such  assess- 
ment; and  to  any  sum  or  sums  due  and  unpaid  after  then J^11*  l^fe n°[ 
thirtieth  day  of  June  in  any  year,  and  for  ten  days  after  when  due. 
notice  and  demand  thereof  by  the  collector,  there  shall  be 
added  the  sum  of  five  per  centum  on  the  amount  of  tax 


326  EXCISE    TAX   ON    CORPORATIONS. 

unpaid  and  interest  at  the  rate  of  1  per  centum  per 
month  upon  said  tax  from  the  time  the  same  becomes  due. 

T.  D.  1659,  Oct,  20,  1910;  sec.  3184,  p.  95. 

Returns  to  be      Sixth.  When  the  assessment  shall  be  made,  as  provided 

filed  with    Com-.  .  .  .  .  ..  r  . 

missioner.  m  this  section,  the  returns,  together  with  any  corrections 

thereof  which  may  have  been  made  by  the  Commissioner, 
shall  be  filed  in  the  office  of  the  Commissioner  of  Internal 
Revenue  and  shall  constitute  public  records  and  be  open 
to  inspection  as  such. 

Amended  by  the  Act  of  June  17,  1910,  which  provides  that  the 
returns  shall  be  open  to  inspection  only  upon  the  order  of  the 
President,  page  328. 

unlawful  to  di-      Seventh.  It  shall  be  unlawful  for  any  collector,  deputy 
tionge  Penait^  collector,  agent,  clerk,  or  other  officer  or  employee  of  the 
United  States  to  divulge  or  make  known  in  any  manner 
whatever  not  provided  by  law  to  any  person  any  informa- 
tion obtained  by  him  in  the  discharge  of  his  official  duty, 
or  to  divulge  or  make  known  in  any  manner  not  provided 
by  law  any  document  received,  evidence  taken,  or  report 
made  under  this  section  except  upon  the  special  direction 
of  the  President;    and  any  offense  against  the  foregoing 
provision  shall  be  a  misdemeanor  and  be  punished  by  a 
fine  not  exceeding  one  thousand  dollars,  or  by  imprison- 
ment not  exceeding  one  year,  or  both,  at  the  discretion  of 
the  court. 
Penalty  for  re-     Eighth.  If  any  of  the  corporations,  joint  stock  com- 
make°rreteurnf  or  panies  or  associations,  or  insurance  companies,  aforesaid, 
i^^&iifif?  ?J  shall  refuse  or  neglect  to  make  a  return  at  the  time  or 
turn.  times  herein  bel ore  specified  m  each  year,  or  shall  render 

a  false  or  fraudulent  return,  such  corporation,  joint  stock 
company  or  association,  or  insurance  company,  shall  be 
liable  to  a  penalty  of  not  less  than  one  thousand  dollars 
and  not  exceeding  ten  thousand  dollars. 

Any  person  authorized  by  law  to  make,  render,  sign, 
or  verify  any  return  who  makes  false  or  fraudulent 
return,  or  statement,  with  intent  to  defeat  or  evade  the 
assessment  required  by  this  section  to  be  made,  shall  be 
guilty  of  a  misdemeanor,  and  shall  be  fined  not  exceeding 
one  thousand  dollars  or  be  imprisoned  not  exceeding  one 
year,  or  both,  at  the  discretion  of  the  court,  with  the  costs 
of  prosecution. 
iteabiemade  ap"  laws  relating  to  the  collection,  remission,  and  refund 

of  internal-revenue  taxes,  so  far  as  applicable  to  and  not 
inconsistent  with  the  provisions  of  this  section,  are  hereby 
extended  and  made  applicable  to  the  tax  imposed  by  this 
section. 
-iJIVii^iS*1™      Jurisdiction  is  hereby  conferred  upon  the  circuit  and 

c  o  n  1  e  r  r  e  u    on  .  pi       t  t     •        10  <■  1         1  ■        •  •   i  ■ 

United  s t a tes district  courts  of  the  United  States  for  the  district  within 
which  any  person  summoned  under  this  section  to  appear 
to  testify  or  to  produce  books,  as  aforesaid,  shall  reside, 
to  compel  such  attendance,  production  of  books,  and 
testimony  by  appropriate  process. 

Regulations  relating  to  the  assessment  and  collection  of  the 
special  excise  tax  imposed  on  corporations,  joint-stock  companies, 


EXCISE  TAX  ON  CORPORATIONS.  327 

associations,  and  insurance  companies.  (Regulations  Xo.  31, 
Dec.  3,  1909;  T.  D.  1571.) 

Excise  tax— Publicity  clause.  (T.  D.  1594,  Feb.  17,  1910; 
Executive  Order,  T.  D.  1665,  Nov.  28,  1910.) 

Synopsis  of  decisions  relating  to  the  tax.  (T.  D.  1606,  Mar. 
29,  1910;  revised  T.  D.  1675,  Feb.  14,  1911.) 

Corporations  engaged  in  business  after  approval  of  act  of  August 
5,  1909,  are  amenable  to  the  provisions  of  section  38,  although 
having  gone  into  liquidation  prior  to  December  31,  1909.  (T.  D. 
1615,  Apr.  15,  1910.) 

Assets  belonging  to  corporations  liable  to  this  tax  are  subject 
to  the  lien  created  by  section  3186,  R.  S.,  after  demand  has  been 
made  for  the  tax.  Where  assets  have  been  distributed  prior  to 
such  demand  the  Government  may  collect  the  tax  by  pursuing 
the  assets  into  the  hands  of  the  stockholders.  (28  Op.  Atty.  Gen., 
241;  T.  D.1615.) 

As  the  tax  imposed  is  measured  by  and  is  not  a  tax  upon  the 
net  receipts  of  corporations,  etc.,  interest  received  during  the 
year  on  Government  bonds  is  not  a  proper  deduction  from  such 
income  in  determining  the  amount  of  tax  due.  (28  Op.  Atty. 
Gen.,  138;  T.  D.  1583.) 

Dividends  received  by  corporations  on  stock  of  other  corpor- 
ations whose  net  income  does  not  exceed  .$5,000  is  nevertheless 
a  proper  deduction  under  the  law.  (28  Op.  Attv.  Gen.,  140, 
Jan.  24,  1910.) 

Limited  partnerships  under  Pennsylvania  Statutes,  if  organ- 
ized for  profit  and  having  a  capital  stock  represented  by  shares, 
although  "no  certificates  of  stock"  are  issued,  are  liable  to  the 
tax.     (28    Op.    Atty.  Gen.,  189,  Feb.  14,  1910.) 

Mutual  savings  banks  under  West  Virginia  Statutes  having  no 
capital  stock  not  liable  to  tax  (28  Op.  Atty.  Gen.,  189,  Feb.  14, 
1910.) 

Mortgage  indebtedness  on  real  estate,  if  assumed  by  the  corpo- 
ration acquiring  such  real  estate,  to  be  included  in  the  indebted- 
ness of  the  corporation.  But  if  not  so  assumed  and  remains  only 
as  a  lien  on  the  property,  interest  paid  thereon  may  be  deducted 
as  a  charge  "made  as  a  condition  to  the  continued  use  or  pos- 
session of  the  property."  (28  Op.  Atty.  Gen.,  198,  Feb.  21, 
1910.) 

Stella  P.  Flint,  as  general  guardian,  etc.,  v.  Stone  Tracy  Co. 
et  al.  (Test  Case  in  United  States  Supreme  Court;  appeal  from 
United  States  circuit  court,  district  of  Vermont.)  Decided  March 
13,  1911.     Constitutionality  of  the  act  sustained.     (T.  D.  1685.) 

A  coroporation  which  owned  an  office  building,  leased  the 
property  for  130  years  and  reorganized,  practically  going  out  of 
business,  its  sole  authority  being  to  hold  title  and  receive  and 
distribute  the  rentals  or  proceeds  of  sale,  if  the  property  should 
be  sold,  Held,  Not  liable  to  the  tax.  Zonne  v.  Minneapolis  Syn- 
dicate, Supreme  Court  decision  Mar.  13,  1911.     (T.  D.  1687.) 

Certain  real  estate  trusts  in  Massachusetts  not  liable.  Con- 
gress intended  to  embrace  only  such  corporations  and  joint- 
stock  associations  as  are  organized  under  some  statute,  or 
derive  from  that  source  some  quality  or  benefit  not  existing 
at  the  common  law.  Eliot  v.  Freeman  et  al.  (dishing  Real 
Estate  Trust).  Maine  Baptist  Missionary  Convention  v.  Cot- 
ting  et  al.  Trustees  (Department  Store  Trust),  Supreme  Court  de- 
cision Mar.  13,  1911.     (T.  D.  1686.) 

[Extract  from  the  legislative,  executive,  and  judicial  appropriation  act  for  the  fiscal 
year  ending  June  30,  1911,  approved  June  17,  1910.    (30  Stat.  494.;] 

:);  :£  ^  ^  :jc 

For  expenses  of  collecting  the  corporation  tax  author- for^Pi£^ation 
ized  by  the  Act  approved  August  fifth,  nineteen  hundred 
and   nine:  "To   provide   revenue,   equalize   duties,    and 
encourage  the  industries  of  the  United   States,  and  for 
other  purposes,"  one  hundred  thousand  dollars. 


328  EXCISE  TAX  ON  CORPORATIONS. 

For  classifying,  indexing,  exhibiting  and  properly 
caring  for  the  returns  of  all  corporations,  required  by 
section  thirty-eight  of  an  Act  entitled  "An  Act  to  pro- 
vide revenue,  equalize  duties,  encourage  the  industries  of 
the  United  States,  and  for  other  purposes,"  approved 
August  fifth,  nineteen  hundred  and  nine,  including  the 
employment,  in  the  District  of  Columbia,  of  such  clerical 
and  other  personal  services  and  for  rent  of  such  quarters 
as  may  be  necessary,  twenty-five  thousand  dollars: 
toUm^LnpeonProvided^  T}iat  anV  <wd  all  such  returns  shall  be  open  to 
order  of  the  Pres\- inspection  only  upon  the  order  of  the  President  under  rules 
and  regulations  to  be  prescribed  by  the  Secretary  of  the 
Treasury  and  approved  by  the  President. 

See  also  the  legislative,  executive,  and  judicial  appropriation 
act  approved  March  4,  1911,  which  appropriates  the  same  amount 
for  the  year  ending  June  30,  1912,  repeating  the  proviso.  (36 
Stat.,  1197.) 

Deficiency  appropriation  act  of  March  4,  1911  (36  Stat.,  1291) 
appropriates  $5,000  for  the  purposes  above  specified,  repeating 
the  proviso. 

Executive  Order  and  Regulations  governing  the  publicity  of 
returns  November  25,   1910.     (T.   D.  1665.) 

[Extract  from  the  deficiency  appropriation  Act  for  1910.    (Act  of  June  25    1910     36 

Stat.,  780.)] 

The  Commissioner  of  Internal  Revenue,  with  the 
forced  authorized!  aPProval  of  the  Secretary  of  the  Treasury,  is  authorized 
out  of  the  appropriation  made  for  the  purpose  of  carrying 
into  effect  section  thirty-eight  of  the  tariff  Act  of  August 
fifth,  nineteen  hundred  and  nine,  for  the  fiscal  year  nine- 
teen hundred  and  eleven,  and  out  of  the  balance  of  the 
appropriation  for  that  purpose  for  the  fiscal  year  nineteen 
hundred  and  ten,  which  balance  is  hereby  reappropriated 
and  made  available  for  the  fiscal  year  nineteen  hundred 
and  eleven,  to  employ  such  additional  force  of  internal- 
revenue  agents,  inspectors,  deputy  collectors,  clerks, 
laborers,  and  other  assistants  as  he  may  deem  proper 
and  necessary  to  the  prompt  operation  and  enforcement 
of   said    section    thirty-eight. 

***** 

See  also  the  deficiency  appropriation  act  of  March  4,  1911 
(36  Stat.,  1291),  which  reenacts  authority  to  employ  additional 
force. 


Chapter  Fourteen. 
STAMP  TAXES  ON  SPECIFIC  OBJECTS. 


Sec. 

3422.  Affixing  stamps  to  instruments  to 
render  them  valid. 

3426  (amended).    Superseded   by  Act  of 
May  12,  1900  (amended). 
Redemption  of  stamps. 

3429  (amended).  Forging,  counterfeiting, 
etc.,  or  fraudulently  using  or  sell- 
ing stamps,  etc. ;  penalties. 
23.  Act  August  5,  1909.  Manufacture 
of  articles  intended  for  exporta- 
tion in  bonded  warehouses. 

3433  (amended).  Articles  for  exportation, 
manufactured  in  bonded  ware- 
houses. 

[3433a.]  Withdrawal  of  distilled  spirits 
by  manufacturer  of  cordials,  liq- 
uors, etc. 

[34336.]  Section  15,  act  May  28,  1880. 
Allowance  for  loss  in  transit. 

25.  Act  August  5,  1909.     Drawback. 

26.  Act  August  5,  1909.     Duties  on  re- 

imported  taxable  articles. 


Sec. 

3437.  Assessment  of  stamp  taxes  where 
articles    are    removed    without 
being  stamped. 
Act  of  June  13,  1898: 

Sec.  13.  Provisions  for  stamping  any 
document  issued  without 
stamps. 

14.  Unstamped  instruments  not 

admissible  as  evidence. 

15.  Recording    unstamped    in- 

struments. 
Act  of  June  27,  1902.  Refund  of  tax  on 

export  bills  of  lading. 
Act  of  March  4,  1907.  Refund  of  tax  on 

export  ship's  manifests. 
Act  of  February  1,  1909.  Refund  of  tax 

on  foreign  bills  of  exchange. 
Act  of  June  25,  1910.  Extension  of  time 

for    refunding    stamp    taxes    on 

foreign  bills  of  exchange. 


For  former  acts  of  Congress  requiring  stamps  to  be  affixed  to 
certain  written  instruments,  see  act  of  Julv  1,  1862,  Schedule  B 
following  section  110  (12  Stat.,  479),  act  of  March  3,  1863,  sec- 
tion 6  (12  Stat.,  720),  act  of  June  30,  1864,  section  151  (13  Stat., 
291);  act  of  March  3,  1865,  section  1  (13  Stat.,  469);  act  of  July 
13,  1866  (r4  Stat.,  141);  act  of  June  23,  1874,  section  1  (18  Stat', 
part  3,  250). 

The  act  of  June  6,  1872,  section  36  (17  Stat.,  256),  provided 
for  the  repeal,  on  and  after  October  31,  1872,  of  stamp  taxes  on 
instruments,  except  the  tax  of  2  cents  on  bank  checks,  drafts, 
and  orders,  which  was  repealed  by  the  act  of  March  3,  1883  (22 
Stat.,  488). 

Taxes  were  imposed  by  the  act  of  June  13, 1898,  on  instruments 
and  documents,  under  Schedule  A  thereof,  and  were  repealed  in 
part  by  the  act  of  March  2,  1901,  and  wholly  repealed  by  the  war- 
revenue  repeal  act  (act  of  Apr.  12,  1902)  (32  Stat.,  96)  taking 
effect  July  1,  1902. 


Sec.  3422. 


Provided,  That,  hereafter,  in 


a]J      AlTixingstamps 
to  unstamped  in- 

cases  where  the  party  has  not  affixed  to  any  instrument  struments. 
the  stamp  required  by  law  thereon,  at  the  time  of  making 
or  issuing  the  said  instrument,  and  he  or  they,  or  any 
party  having  an  interest  therein,  shall  be  subsequently 
desirous  of  affixing  such  stamp  to  said  instrument,  or  if 
said  instrument  be  lost,  to  a  copy  thereof,  he  or  they  shall 
appear  before  the  collector  of  the  revenue  of  the  proper 
district,  who  shall,  upon  the  payment  of  the  price  of  the 
proper  stamp  required  by  law,  and  of  a  penalty  of  double 
the  amount  of  tax  remaining  unpaid,  but  in  no  case  less 

329 


330  STAMP   TAXES   ON    SPECIFIC    OBJECTS. 

than  five  dollars,  and  where  the  whole  amount  of  the  tax 
denoted  by  the  stamp  required  shall  exceed  the  sum  of 
fifty  dollars,  on  payment  also  of  interest,  at  the  rate  of 
six  per  centum  on  said  tax  from  the  day  on  which  such 
stamp  ought  to  have  been  affixed,  affix  the  proper  stamp 
to  such  instrument  or  copy,  and  note  upon  the  margin 
thereof  the  date  of  his  so  doing,  and  the  fact  that  such 
penalty  has  been  paid;  and  the  same  shall  thereupon  be 
deemed  and  held  to  be  as  valid,  to  all  intents  and  purposes, 
as  if  stamped  when  made  or  issued. 
when    instru-      And  provided  further,  That  where  it  shall  appear  to  said 

ments  not  stamp-        n       ,  ,1  ,  1  •  i  •  •  \.r      •  , 

ed  through    ac-  collector,  upon  oath  or  otherwise,  to  his  satisfaction,  that 

take6 etc.    mis"any  such  instrument  has  not  been  duly  stamped  at  the 

W5°*  °f(i8esta1t8;  ^me  °f  m.aking  or  issuing  the  same,  by  reason  of  accident, 

316.)  'mistake,  inadvertence,  or  urgent  necessity,  and  without 

any  willful  design  to  defraud  the  United  States  of  the 

stamps,  or  to  evade  or  delay  the  payment  thereof,  then, 

and  in  such  case,  if  such  instrument,  or,  if  the  original  be 

lost,  a  copy  thereof,  duly  certified  by  the  officer  having 

charge  of  any  records  in  which  such  original  is  required  to 

be  recorded,  or  otherwise  duly  proven  to  the  satisfaction 

of  the  collector,   shall,   within  twelve  calendar  months 

after  the  making  or  issuing  thereof,  be  brought  to  the  said 

collector  of  revenue  to  be  stamped,  and  the  stamp- tax 

chargeable  thereon  shall  be  paid,  it  shall  be  lawful  for  the 

remft1pCetD,altyansaid  collector  to  remit  the  penalty  aforesaid,  and  to  cause 

such  instrument  to  be  duly  stamped. 

And  when  the  original  instrument,  or  a  certified  or  duly 
proved  copy  thereof,  as  aforesaid,  duly  stamped  so  as  to 
entitle  the  same  to  be  recorded,  shall  be  presented  to  the 
clerk,  register,  recorder,  or  other  officer  having  charge  of 
the  original  records,  it  shall  be  lawful  for  such  officer,  upon 
the  payment  of  the  fee  legally  chargeable  for  the  record- 
ing thereof,  to  make  a  new  record  thereof,  or  to  note  upon 
the  original  record  the  fact  that  the  error  or  omission  in 
the  stamping  of  said  original  instrument,  has  been  cor- 
rected pursuant  to  law;  and  the  original  instrument,  or 
such  certified  copy  of  the  record  thereof  may  be  used  in 
all  courts  and  places  in  the  same  manner  and  with  like 
effect  as  if  the  instrument  had  been  originally  stamped. 
But  no  right  acquired  in  good  faith  before  the  stamping 
of  such  instrument  or  copy  thereof,  and  the  recording 
thereof,  as  herein  provided,  if  such  record  be  required 
by  law,  shall  in  any  manner  be  affected  by  such  stamp- 
ing as  aforesaid. 

The  above  section  was  practically  superseded  by  section  13, 
act  of  June  13,  1898  (30  Stat.,  448),  page  338. 

See  act  to  provide  for  the  stamping  of  unstamped  instruments, 
etc  ,  approved  June  23, 1874  (18  Stat,,  250),  and  act  to  extend  the 
time  for  stamping  unstamped  instruments  approved  February 
25,  1876  (19  Stat.,  5). 


STAMP    TAXES    ON    SPECIFIC    OBJECTS.  331 

Sec.  3426  [as  amended  by  sec.  17,  act  oj  Mar.  1,  1879 
(20  Stat,  327)}.     Redemption  of  stamps,  etc. 

This  section  has  been  superseded  by  the  following  Act: 

REDEMPTION    OF    STAMPS. 

An  Act  Authorizing  the  Commissioner  of  Internal  Revenue  to  redeem 
or  make  allowance  for  internal-revenue  stamps.  (Act  of  Mav  12, 
1900  (31  Stat.,  177),  as  amended  by  the  act  of  June  30,  1902  (32 
Stat.,  506).) 

That  the  Commissioner  of  Internal  Revenue,  subject r  e^ tfn™? n°nt he 
to  regulations  prescribed  by  the  vSeeretary  of  the  Treas- value  of  stamps 
ury,  may,,  upon  receipt  of  satisfactory  evidence  of  theme^t^f  an/m- 
facts,  make  allowance  for  or  redeem  such  of  the  stamps,  temai-re  venue 
issued  under  authority  of  law,  to  denote  the  payment  of 
any  internal-revenue  tax,  as  may  have  been  spoiled, 
destroyed,  or  rendered  useless  or  unfit  for  the  purpose 
intended,  or  for  which  the  owner  may  have  no  use,  or 
which  through  mistake  may  have  been  improperly  or 
unnecessarily  used,  or  where  the  rates  or  duties  repre- 
sented thereby  have  been  excessive  in  amount,  paid  in 
error,  or  in  any  manner  wrongfully  collected.  Such 
allowance  or  redemption  may  be  made,  either  by  giving 
other  stamps  in  lieu  of  the  stamps  so  allowed  for  or 
redeemed,  or  by  refunding  the  amount  or  value  to  the 
owner  thereof,  deducting  therefrom,  in  case  of  repay- 
ment, the  percentage,  if  any,  allowed  to  the  purchaser 
thereof;  but  no  allowance  or  redemption  shall  be  made 
in  any  case  until  the  stamps  so  spoiled  or  rendered  useless 
shall  have  been  returned  to  the  Commissioner  of  Internal 
Revenue,  or  until  satisfactory  proof  has  been  made 
showing  the  reason  why  the  same  can  not  be  returned  ;  or, 
if  so  required  by  the  said  Commissioner,  when  the  person 
presenting  the  same  can  not  satisfactorily  trace  the 
history  of  said  stamps  from  their  issuance  to  the  presen- 
tation of  his  claim  as  aforesaid. 

Provided,  That  documentary  and  proprietary  stamps 
issued  under  the  provisions  of  "An  act  to  provide  ways 
and  means  for  war  expenditures,  and  for  other  purposes," 
approved  June  thirteenth,  eighteen  hundred  and  ninety- 
eight,  may  be  redeemed  only  when  presented  in  quan- 
tities of  two  dollars  or  more,  face  value: 

Provided  further,  That  no  claim  for  the  redemption  of  Limitation  to 
or  allowance  for  stamps  shall  be  allowed  unless  pre-re 
sented  within  two  years  after  the  purchase  of  said 
stamps  from  the  Government,  "excepting  documentary  and 
proprietary  stamps  issued  under  the  Act  of  June  thirteenth, 
eighteen  hundred  and  ninety-eight,  which  stamps  may  be 
redeemed  as  hereinbefore  authorized ,  upon  presentation  prior 
to  the  first  day  of  July,  nineteen  hundred  and  four." 

Sec.  2.  That  the  finding  of  facts  in  and  the  decision  of  mfs^o^ofCfi°™i 
the  Commissioner  of  Internal  Revenue  upon  the  merits  except  in  case  of 
of  any  claim  presented  under  or  authorized  by  this  Act  matfcafmiSake6" 


332  STAMP   TAXES   ON    SPECIFIC    OBJECTS. 

shall,  in  the  absence  of  fraud  or  mistake  in  mathematical 
calculation,  be  final  and  not  subject  to  revision  by  any 
accounting  officer. 

Sec  3.  That  all  laws  and  parts  of  laws  in  conflict  with 
any  of  the  provisions  of  this  Act  are  hereby  repealed. 

The  American  West  Indies  Trading  Co.  v.  U.  S.  (45  Ct.  Cls., 
488.) 

Regulations  No.  27  and  Supp.  Xo.  1. 

Court  of  Claims  has  jurisdiction  to  enforce  payment  of  a  claim 
allowed  by  Commissioner  and  disallowed  by  Comptroller. 
(Kaufman  v.  United  States,  11  Ct.  Cls.,  659;  96  U.  S.,  567;  24 
Int.  Rev.  Rec,  135.)  See  also  Woolner's  case  (13  Ct.  Cls.,  355; 
24  Int.  Rev.  Rec,  181). 

Authority  to  issue  duplicate  stamps  for  spirits,  etc.,  in  place  of 
stamps  which  have  been  lost  or  accidentally  destroyed.  (Sec. 
3315,  p.  209.) 

Stamps  not  representing  revenue  taxes  will  not  be  redeemed 
by  the  Government.  (Letter  to  Collector  Shearer,  Oct.  28,  1897; 
43  Int.  Rev.  Rec,  401.) 

There  is  no  material  difference  between  the  powers  of  the  Com- 
missioner under  section  3426,  and  under  section  3220,  page  114. 
Under  section  3426  he  is  to  "allow"  the  claim,  which  is  done 
either  by  giving  other  stamps  in  lieu  of  those  that  have  been 
spoiled,  etc. ,  or  by  repaying  the  amount  or  value.  Under  section 
3220  he  is  to  "  refund ' '  and  "  pay  back. ' '  His  payments  in  both 
cases  must  be  made  through  the  accounting  officers  of  the  Treas- 
ury Department,  as  he  is  not  himself  a  disbursing  officer.  (United 
States  v.  Savings  Bank  (1881),  104  U.  S.,  733;  28  Int.  Rev. 
Rec,  87.) 

(United  States  v.  American  Tobacco  Co.,  166  U.  S.,  468.) 

Internal-revenue  stamps  redeemable  only  when  owned  and 
presented  for  redemption  by  persons,  or  their  legal  representa- 
tives, authorized  to  purchase  and  use  them  for  the  payment  of 
taxes.     (T.  D.  19224,  1898.) 

Sec.  3429  [as  amended  by  sec.  17,  act  of  Mar.  1,  1879 
(20  Stat.,  327).     Supp.  R.  S.,  vol.  1,  p.  242.] 

Penalties  for  forging,  counterfeiting,  etc..  or  fraudulently  using 
or  selling  stamps,  etc. 

This  section  not  repealed  by  the  Criminal  Code,  and  remains  in 
force. 

Section  8  of  the  war  revenue  act  (act  of  June  13,  1898)  re- 
enacted  the  provisions  for  purposes  of  that  act  (p.  300,  Com- 
pilation of  1900). 

See  also  section  42,  act  of  August  28,  1894.  page  344. 

***** 
Prima  facie  evi-  And  the  fact  that  any  adhesive  stamp  so  bought,  sold, 
re1to?mgWetehiDS' offered  for  sale,  used,  or  had  in  possession  as  aforesaid, 
has  been  washed  or  restored  by  removing  or  altering  the 
canceling  or  defacing  marks  thereon,  shall  be  prima- 
facie  proof  that  such  stamp  has  been  once  used  and  re- 
moved by  the  possessor  thereof  from  some  paper,  instru- 
ment, or  writing,  charged  with  taxes  imposed  by  law,  in 
violation  of  the  provisions  of  this  section. 

Kaufman  v.  United  States,  51  C.  C.  A.,  549,  113  Fed.  Rep.,  919. 
(Indictment  for  having  in  possession  and  knowingly  offering 
for  sale  washed  and  restored  adhesive  documentary  stamps.) 

Counterfeiting  imitation  wine  or  compound  liquor  stamps 
(sec.  3328,  p.  217). 

Counterfeiting  stamps  for  fermented  liquors  (sec  3346.  p.  252). 

Using  imitation  stamps  on  packages  of  distilled  spirits  (sec. 
3316a,  p.  209). 


STAMP   TAXES   ON    SPECIFIC    OBJECTS.  333 

Counterfeiting  obligations  or  securities  of  the  United  States, 
which  includes  stamps  (sees.  147, 148,  Criminal  Code,  act  Mar.  4, 
1909,  35  Stat.,  1115,  p.  420,  Appendix). 

Dealing  in  counterfeit  securities  (sec.  154,  Criminal  Code,  act 
Mar.  4,  1909,  35  Stat.,  1117). 

MANUFACTURE  OF  ARTICLES  INTENDED  FOR  EXPORTATION 
IN    BONDED    WAREHOUSES. 

Sec.  23.  [Act  of  Aug.  5,  1909  (36  Stat,  88).]     That  tJ**g*  manu- 
all    articles  manufactured   in   whole  or  in  part  of    im- ported  materials 
ported  materials,   or  of   materials  subject  to  internal- jJgSL**  ex" 
revenue  tax,  and  intended  for  exportation  without  being 
charged   with   duty,    and   without   having   an   internal- 
revenue  stamp  affixed  thereto,  shall,  under  such  regula- 
tions as  the  Secretary  of  the  Treasury  may  prescribe,  in 
order  to  be  so  manufactured  and  exported,  be  made  and 
manufactured   in   bonded   warehouses   similar   to   those 
known  and  designated  in  Treasury  Regulations  as  bonded 
warehouses,  class  six:  Provided,  That  the  manufacturer 
of  such  articles  shall  first  give  satisfactory  bonds  for  the  to^°^dtarer 
faithful  observance  of  all  the  provisions  of  law  and  of 
such  regulations  as  shall  be  prescribed  by  the  Secretary 
of  the  Treasury:  Provided  further,  That  the  manufacture  ^Jgwjjj 
of  distilled  spirits  from  grain,  starch,  molasses,  or  sugar,  not  permitted  in 
including  all  dilutions  or  mixtures  of  them  or  either  ofyj£J. 
them,  shall  not  be  permitted  in  such  manufacturing  ware- 
houses. 

Whenever  goods  manufactured  in  any  bonded  ware-  w^at  is  ex- 
house  established  under  the  provisions  of  the  preceding 
paragraph  shall  be  exported  directly  therefrom  or  shall 
be  duly  laden  for  transportation  and  immediate  exporta- 
tion under  the  supervision  of  the  proper  officer  who  shall 
be  duly  designated  for  that  purpose,  such  goods  shall  be 
exempt  from  duty  and  from  the  requirements  relating  to 
revenue  stamps. 

Any  materials  used  in  the  manufacture  of  such  goods  beMf0enr^edca° 
and  any  packages,  coverings,  vessels,  brands,  and  labels  bonded  manufac- 
used  in  putting  up  the  same  may,  under  the  regulations  house  without 
of  the  Secretary  of  the  Treasury,  be  conveyed  without  payment  of  tax. 
the  payment  of  revenue  tax  or  duty  into  any  bonded 
manufacturing   warehouse,    and    imported    goods    may, 
under  the  aforesaid  regulations,  be  transferred  without 
the  exaction  of  duty  from  any  bonded  warehouse  into 
any  bonded  manufacturing  warehouse;  but  this  privilege 
shall  not  be  held  to  apply  to  implements,  machinery,  or 
apparatus  to  be  used  in  the  construction  or  repair  of  any 
bonded  manufacturing  warehouse  or  for  the  prosecution 
of  the  business  carried  on  therein. 

No   articles  or  materials  received  into   such   bonded  be^vVdrk™  ex- 
manufacturing  warehouse  shall  be  withdrawn  or  removed  cept    for    ship- 
therefrom  except  for  direct  shipment  and  exportation  ormen  ' 
for  transportation  and  immediate  exportation  in  bond 
to  foreign  countries  or  to  the  Philippine  Islands  under  the 
supervision  of  the  officer  duly  designated  therefor  by  the 


334  STAMP   TAXES   ON    SPECIFIC    OBJECTS. 

collector  of  the  port,  who  shall  certify  to  such  shipment 
and  exportation,  or  ladening  for  transportation,  as  the 
case  may  be,  describing  the  articles  by  their  mark  or 
otherwise,  the  quantity,  the  date  of  exportation,  and  the 
name  of  the  vessel:  Provided,  That  the  waste  material  or 
bij- products  incident  to  the  processes  of  manufacture  in  said 
bonded  warehouses  may  be  withdrawn  for  domestic  con- 
sumption on  the  payment  of  duty  equal  to  the  duty  which 
would  be  assessed  aiid  collected,  by  law,  if  such  waste  or  by- 
products were  imported  from  a  foreign  country.  All  labor 
performed  and  services  rendered  under  these  provisions 
shall  be  under  the  supervision  of  a  duly  designated  officer 
of  the  customs  and  at  the  expense  of  the  manufacturer. 
keptCbycoiiecton  A  careful  account  shall  be  kept  by  the  collector  of  all 
merchandise  delivered  by  him  to  any  bonded  manufac- 
turing warehouse,  and  a  sworn  monthly  return,  verified 
by  the  customs  officers  in  charge,  shall  be  made  by  the 
manufacturers  containing  a  detailed  statement  of  all 
imported  merchandise  used  by  him  in  the  manufacture  of 
exported  articles. 
wnh^ecr^farvleodf  Before  commencing  business  the  proprietor  of  any 
Treasury.  '  manufacturing  warehouse  shall  file  with  the  Secretary  of 
the  Treasury  a  list  of  all  the  articles  intended  to  be  manu- 
factured in  such  warehouse,  and  state  the  formula  of 
manufacture  and  the  names  and  quantities  of  the  in- 
gredients to  be  used  therein. 
manufacturedcan  Articles  manufactured  under  these  provisions  may  be 
be  withdrawn,  withdrawn  under  such  regulations  as  the  Secretary  of  the 
Treasury  may  prescribe  for  transportation  and  delivery 
into  any  bonded  warehouse  at  an  exterior  port  for  the 
sole  purpose  of  immediate  export  therefrom. 
appiicabfe3  made  The  provisions  of  Revised  Statutes  thirty-four  hundred 
and  thirty-three  shall,  so  far  as  may  be  practicable,  apply 
to  any  bonded  manufacturing  warehouse  established 
under  this  Act  and  to  the  merchandise  conveyed  therein. 

This  section  is  mainlv  a  reproduction  of  section  15  of  the  tariff 
act  of  July  24,  1897  (30  Stat.,  207V  See  Internal  Revenue  Com- 
pilation of  1900,  page  297,  amendments  being  in  italics. 

intended  £?S  Sec-  3433  ^as  amended  by  sec.  10,  act  of  Oct.  1,  1890  (26 
ponation  to  be  Stat.,  614)].  All  medicines,  preparations,  compositions, 
wielfUweadren- perfumery,  cosmetics,  cordials,  and  other  liquors  manu- 
houses.  factured  wholly  or  in  part  of  domestic  spirits,  intended 

for  exportation,  as  provided  by  law,  in  order  to  be  manu- 
factured and  sold  or  removed,  without  being  charged 
with  duty,  and  without  having  a  stamp  affixed  thereto, 
Regulations,  shall,  under  such  regulations  as  the  Secretary  of  the 
Treasury  may  prescribe,  be  made  and  manufactured  in 
warehouses  similarly  constructed  to  those  known  and 
designated  in  Treasury  regulations  as  bonded  warehouses, 
class  two:  Provided,  That  such  manufacturer1  shall  first 
Bonds.  give  satisfactory  bonds  to  the  collector  of  internal  revenue 

for  the  faithful  observance  of  all  the  provisions  of  law  and 
the  regulations  as  aforesaid,  in  amount  not  less  than  half 

'This  word   "manufacturer"  is  erroneously   printed   "manufactory"  in  Revised 
Statutes,  edition  of  1878. 


STAMP   TAXES   ON   SPECIFIC    OBJECTS.  335 

of  that  required  by  the  regulations  of  the  Secretary  of  the 

Treasury  from  persons  allowed  bonded  warehouses.    Such 

goods,  when  manufactured  in  such  warehouses,  may  be  0|fdgmovlng 

removed  for  exportation,  under  the  direction  of  the  proper  gc 

officer  having  charge  thereof,  who  shall  be  designated  by 

the  Secretary  of  the  Treasury,  without  being  charged  with 

duty,  and  without  having  a  stamp  affixed,  thereto. 

Anv  manufacturer  of  the  articles  aforesaid,  or  of  anv  of    Articles     and 

»^_,  ,-.  »i  i  /»  "iifii_     rno.t6na.is  tiSGu  in 

them,  having  such  bonded  warehouse  as  aforesaid,  shall  be  warehouse. 
at  liberty,  under  such  regulations  as  the  Secretary  of  the 
Treasury  may  prescribe,  to  convey  therein  any  materials 
to  be  used  in  such  manufacture  which  are  allowed  by  the 
provisions  of  law  to  be  exported  free  from  tax  or  duty,  as 
well  as  the  necessary  materials,  implements,  packages, 
vessels,  brands,  and  labels  for  the  preparation,  putting  up, 
and  export  of  the  said  manufactured  articles;  and  every 
article  so  used  shall  be  exempt  from  the  payment  of  stamp 
and  excise  duty  by  such  manufacturer. 

Articles  and  materials  so  to  be  used  may  be  transferred  ^Us£°4n?is°in 
from  any  bonded  warehouse  in  which  the  same  may  be,  bond. 
under  such  regulations  as  the  Secretary  of  the  Treasury 
may  prescribe,  into  any  bonded  warehouse  in  which  such 
manufacture  may  be  conducted,  and  may  be  used  in  such 
manufacture,  and  when  so  used  shall  be  exempt  from 
stamp  and  excise  duty;  and  the  receipt  of  the  officer  in 
charge,  as  aforesaid,  shall  be  received  as  a  voucher  for  the 
manufacture  of  such  articles. 

Any  materials  imported  into  the  TjDited  States  may, 
under  such  rules  as  the  Secretary  of  the  Treasury  may 
prescribe,  and  under  the  direction  of  tue  proper  officer,  be 
removed  in  original  packages  from  on  shipboard,  or  from 
the  bonded  warehouse  in  which  the  same  may  be,  into  the 
bonded  warehouse  in  which  such  manufacture  may  be 
carried  on,  for  the  purpose  of  being  used  in  such  manufac- 
ture, without  payment  of  duties  thereon,  and  may  there 
be  used  in  such  manufacture. 

No  article  so  removed,  nor  any  article  manufactured  in 
said  bonded  warehouse,  shall  be  taken  therefrom  except 
for  exportation,  under  the  direction  of  the  proper  officer 
having  charge  thereof,  as  aforesaid,  whose  certificate, 
describing  the  articles  by  their  marks,  or  otherwise,  the 
quantity,  the  date  of  importation,  and  name  of  vessel, 
with  such  additional  particulars  as  may  from  time  to  time 
be  required,  shall  be  received  by  the  collector  of  customs 
in  cancellation  of  the  bonds,  or  return  of  the  amount  of 
foreign  import  duties. 

All  labor  performed  and  services  rendered  under  these    supervision, 
regulations  shall  be  under  the  supervision  of  an  officer  of el 
the  customs,  and  at  the  expense  of  the  manufacturer. 

(Regulations  of  the  Secretary  of  Treasury  relating  to  the  estab- 
lishment of  bonded  manufacturing  warehouses  (Customs  Regu- 
lations 1908.) 

(Treasury  Department  Document  2464,  Division  of  Customs, 
May  6.  1907. )  (T.  D.  30458.,  Mar.  22.  1910;  T.  D.  30516,  Apr.  9, 
1910;  T.  D.  30927,  Sept.  15,  1910) 


336 


STAMP   TAXES   ON    SPECIFIC   OBJECTS. 


Allowance 
leakage. 


for 


spSKv  mLt  tSEC-  3433a,]  [Sec.  20,  act  of  Mar.  1 ,  1879  (20  Stat.,  327) , 
facturer  "of  per- as  amended  by  sec.  14,  act  of  May  28,  1880  (21  Stat.,  145).] 
That  under  such  regulations  and  requirements  as  to 
stamps,  bonds,  and  other  security  as  shall  be  prescribed  by 
the  Commissioner  of  Internal  Revenue,  any  manufacturer 
of  medicines,  preparations,  compositions,  perfumeries,  cos- 
metics, cordials,  and  other  liquors,  for  export,  manufactur- 
ing the  same  in  a  duly  constituted  manufacturing  ware- 
house, shall  be  authorized  to  withdraw,  in  original  pack- 
ages, from  any  distillery-warehouse,  so  much  distilled 
spirits  as  he  may  require  for  the  said  purpose,  without  the 
payment  of  the  internal- revenue  tax  thereon. 

[Sec.  34336.]  [See.  15,  act  of  May  28,  1880  (21  Stat., 
145).]  That  where  spirits  are  withdrawn  from  distillery 
warehouses  for  transfer  to  manufacturing  warehouses, 
under  the  provisions  of  this  act,  it  shall  be  lawful,  under 
such  rules  and  regulations  and  limitations  as  shall  be 
prescribed  by  the  Commissioner  of  Internal  Revenue, 
with  the  approval  of  the  Secretary  of  the  Treasury,  for  an 
allowance  to  be  made  for  leakage  or  loss  by  any  unavoid- 
able accident,  and  without  any  fraud  or  negligence  of  the 
distiller,  owner,  exporter,  carrier,  or  their  agents  or  em- 
ployees, occurring  during  transportation  from  a  distillery 
warehouse  to  a  manufacturing  warehouse. 

See  Regulations,  No.  29,  relative  to  transportation  and  exporta- 
tion of  distilled  spirits  in  bond  free  of  tax. 

Sec.  3434.  Superseded  by  sec.  23  of  the  act  of  Aug.  5, 
1909,  last  paragraph  but  one,  p.  334. 


Drawback. 


Equal    to 
duty  paid,  less 
per  cent. 


the 


DRAWBACK. 

Sec.  25.  [Act  of  Aug.  5,  1909  (36  Stat.,  90).}  That  where 
imported  materials  on  which  duties  have  been  paid  are 
used  in  the  manufacture  of  articles  manufactured  or 
produced  in  the  United  States,  there  shall  be  allowed  on 
the  exportation  of  such  articles  a  drawback  equal  in 
amount  to  the  duties  paid  on  the  materials  used,  less  one 
per  centum  of  such  duties:  Provided,  That  when  the 
articles  exported  are  made  in  part  from  domestic  materials 
the  imported  materials,  or  the  parts  of  the  articles  made 
from  such  materials,  shall  so  appear  in  the  completed 
articles  that  the  quantity  or  measure  thereof  may  be 
ascertained:  And  provided  further,  That  the  drawback 
on  any  article  allowed  under  existing  law  shall  be  con- 
tinued at  the  rate  herein  provided.  That  the  imported 
materials  used  in  the  manufacture  or  production  of 
articles  entitled  to  drawback  of  customs  duties  when 
exported  shall,  in  all  cases  where  drawback  of  duties  paid 
on  such  materials  is  claimed,  be  identified,  the  quantity 
of  such  materials  used  and  the  amount  of  duties  paid 
thereon  shall  be  ascertained,  the  facts  of  the  manufacture 
or  production  of  such  articles  in  the  United  States  and 
their  exportation  therefrom  shall  be  determined,  and  the 
drawback  due  thereon  shall  be  paid  to  the  manufacturer, 
producer,  or  exporter,  to  the  agent  of  either,  or  to  the 


STAMP    TAXES   ON    SPECIFIC    OBJECTS.  337 

person  to  whom  such  manufacturer,  producer,  exporter, 
or  agent  shall  in  writing  order  such  drawback  paid,  under 
such  regulations  as  the  Secretary  of  the  Treasury  shall 
prescribe. 

That  on  the  exportation  of  medicinal  or  toilet  prepara-  ^Jquai  ^tge 
tions   (including  perfumery)   hereafter  manufactured  oraicohoi  used  in 
produced  in  the  United  States  in  part  from  domestic  ^cinalprep|^ 
alcohol  on  which  an  internal-revenue  tax  has  been  paid,  tions. 
there  shall  be  allowed  a  drawback  equal  in  amount  to  the 
tax  found  to  have   been  paid  on    the  alcohol  so  used: 
Provided,  That  no  other  than  domestic  tax-paid  alcohol 
shall  have  been  used  in  the  manufacture  or  production 
of  such  preparations.     Such  drawback  shall  be  deter- 
mined and  paid  under  such  rules  and  regulations,  and 
upon  the  filing  of  such  notices,  bonds,  bills  of  lading,  and 
other  evidence  of  payment  of  tax  and  exportation,  as  the 
Secretary  of  the  Treasury  shall  prescribe.     *     *  ■    * 

Drawback  on  medicinal  and  toilet  preparations  manufactured 
from  tax-paid  domestic  alcohol. — Regulations,  Department 
Circular  No.  39,  August  13,  1909.     (T.  D.  29952.) 

Drawback  on  medicinal  and  toilet  preparations  manufactured 
from  tax-paid  domestic  alcohol. — Amended  Regulations.  (T. 
D.  30559,  Apr.  22,  1910;  T.  D.  30831,  July  27,  1910.) 

Drawback  payable  from  the  permanent  appropriation  carried 
by  section  3689,  Revised  Statures.     (17  Comp.  Dec,  24.) 

Free  entry  of  domestic  products  exported  and  returned. 
(Dept.  Cir.  No.  64,  Oct.  29,  1907.) 

Sec.  26.  [Reimportation  of  articles  exported  in  bond  or  th£ U^teer^f-U- 
with drawback.    Act  of  Aug .5 , 1 909  (36  Stat.,  90).]     That enue  tax  jo^bj 
upon  the  reimportation  of  articles  once  exported,  of  therehnportedartloen 
growth,  product,  or  manufacture  of  the  United  States,  ^£ve™eta£x 
upon  which  no  internal  tax  has  been  assessed  or  paid,  or  was  paid,  or,  if 
upon  which  such  tax  has  been  paid  and  refunded  by  allow-  Funded. w 
ance  or  drawback,  there  shall  be  levied,  collected,  and 
paid  a  duty  equal  to  the  tax  imposed  by  the  internal- 
revenue  laws  upon  such  articles,  except  articles  manu- 
factured in  bonded  warehouses  and  exported  pursuant 
to  law,  which  shall  be  subject  to  the  same  rate  oi  duty  as 
if  originally  imported,  but  proof  of  the  identity  of  such  arti- 
cles shall  be  made  under  general  regulations  to  be  prescribed 
by  the  Secretary  of  the  Treasury. 

This  section  is  mainly  a  reproduction  of  section  27  of  the  tariff 
act  of  July  24  1897  (.30  Stat. ,  210),  Internal  Revenue  Compilation 
of  1900,  page  298,  amendment  being  in  italics. 

Sec.  3437.  Whenever  any  article  upon  which  a  tax  is  s  ^^ tf 
required  to  be  paid  by  means  of  a  stamp  is  sold  or  removed  when   article  is 
for  sale  by  the  manufacturer  thereof,  without  the  use  oi^gtta^^11 
the  proper  stamp,  in  addition  to  the  penalties  imposed  by 
law  for  such  sale  or  removal,  it  shall  be  the  duty  of  the 
Commissioner  of  Internal  Revenue,  within  a  period  of  not 
more  than  two  years  after  such  removal  or  sale,  upon  such 
information  as  he  can  obtain,  to  estimate  the  amount  of 
the  tax  which  has  been  omitted  to  be  paid,  and  to  make 
an  assessment  therefor  upon  the  manufacturer  or  pro- 
ducer of  such  article.     He  shall  certify  such  assessment 
to  the  collector,  who  shall  immediately  demand  payment 

72170°— 11 22 


338 


STAMP   TAXES   ON   SPECIFIC   OBJECTS. 


Penalty. 


of  such  tax,  and  upon  the  neglect  or  refusal  of  payment 
by  such  manufacturer  or  producer,  shall  proceed  to  collect 
the  same  in  the  manner  provided  for  the  collection  of  other 
assessed  taxes. 

As  to  assessments  in  general,  section  3182,  page  92. 

Any  person     Sec  13.   (Act  June  13, 1898)  30  Stat.,  454,  as  amended 

5£  SKSy  &  hV  sec-  ?,  Act  °f  Marclh  2i  1901>:  31  Stat->  94°-)     That  any 
men^etc'  with-  Person  or  persons  who  shall  register,  issue,  sell,  or  transfer, 
out  stamp.''         or  who  shall  cause  to  be  issued,  registered,  sold,  or  trans- 
ferred, any  instrument,  document,  or  paper  of  any  kind  or 
description  whatsoever  mentioned  in  Schedule  A  of  this 
Act,  without  the  same  being  duly  stamped,  or  having 
thereupon  an  adhesive  stamp  for  denoting  the  tax  charge- 
able thereon,  and  canceled  in  the  manner  required  by  law, 
with  intent  to  evade  the  provisions  of  this  Act,  shall  be 
deemed  guilty  of  a  misdemeanor,  and  upon  conviction 
thereof  shall  be  punished  by  a  fine  not  exceeding  fifty 
dollars,  or  by  imprisonment  not  exceeding  six  months,  or 
both,  in  the  discretion  of  the  court;  and  such  instrument, 
document,  or  paper,  not  being  stamped  according  to  law, 
shall  be  deemed  invalid  and  of  no  effect :  Provided,  That 
hereafter,  in  all  cases  where  the  party  has  not  affixed  to 
any  instrument  the  stamp  required  by  law  thereon  at  the 
time  of  issuing,  selling,  or  transferring  the  said  bonds, 
un- debentures,  or  certificates  of  stock  or  of  indebtedness,  or 
any  instrument,  document,  or  paper  of  any  Jcind  or  descrip- 
tion whatsoever  mentioned  in  Schedule  A  of  this  Act,  and 
he  or  they,  or  any  party  having  an  interest  therein,  shall 
be  subsequently  desirous  of  affixing  such  stamp  to  said 
instrument,  or,  if  said  instrument  be  lost,  to  a  copy  there- 
of, he  or  they  shall  appear  before  the  collector  of  internal 
revenue  of  the  proper  district,  who  shall,  upon  the  pay- 
ment of  the  price  of  the  proper  stamp  required  by  law,  and 
of  a  penalty  of  ten  dollars,  and.  where  the  whole  amount 
of  the  tax  denoted  by  the  stamp  required  shall  exceed  the 
sum  of  fifty  dollars,  on  payment  also  of  interest,  at  the 
rate  of  six  per  centum,  on  said  tax  from  the  day  on  which 
such  stamp  ought  to  have  been  affixed,  affix  the  proper 
stamp  to  such  bond,  debenture,  certificate  of  stock  or  of 
indebtedness  or  copy,  or  instrument,  document,  or  paper 
of  any  Jcind  or  description  whatsoever  mentioned  in  Sched- 
oiule  A  of  this  Act,  and  note  upon  the  margin  thereof  the 
aTc^/entfmis-date  of  his  so  doing,  and  the  fact  that  such  penalty  has 
take,  etc.  been  paid ;   and  the  same  shall  thereupon  be  deemed  and 

held  to  be  as  valid,  to  all  intents  and  purposes,  as  if 
stamped  when  made  or  issued :  And  provided  further,  That 
where  it  shall  appear  to  said  collector,  upon  oath  or  other- 
wise, to  his  satisfaction,  that  any  such  instrument  has  not 
been  duly  stamped,  at  the  time  of  making  or  issuing  the 
same,  by  reason  of  accident,  mistake,  inadvertence,  or 
urgent   necessity,    and    without    any    willful    design    to 


Validating 
stamped     instru 
ments. 


Penalty. 


Remission 


STAMP   TAXES   ON   SPECIFIC   OBJECTS. 


339 


defraud  the  United  States  of  the  stamp,  or  to  evade  or 
delay  the  payment  thereof,  then  and  in  such  case,  if  such 
instrument,  or,  if  the  original  be  lost,  a  copy  thereof,  duly 
certified  by  the  officer  having  charge  of  any  records  in 
which  such  original  is  required  to  be  recorded,  or  other- 
wise duly  proven  to  the  satisfaction  of  the  collector,  shall, 
within  twelve  calendar  months  after  the  making  or 
issuing  thereof,  be  brought  to  the  said  collector  of 
internal  revenue  to  be  stamped,  and  the  stamp  tax 
chargeable  thereon  shall  be  paid,  it  shall  be  lawful  for  the 
said  collector  to  remit  the  penalty  aforesaid  and  to  cause 
such  instrument  to  be  duly  stamped.  And  when  the 
original  instrument,  or  a  certified  or  duly  proven  copy  Recording, 
thereof,  as  aforesaid,  duly  stamped  so  as  to  entitle  the 
same  to  be  recorded,  shall  be  presented  to  the  clerk, 
register,  recorder,  or  other  officer  having  charge  of  the 
original  record,  it  shall  be  lawful  for  such  officer,  upon  the 
payment  of  the  fee  legally  chargeable  for  the  recording 
thereof,  to  make  a  new  record  thereof,  or  to  note  upon  the 
original  record  the  fact  that  the  error  or  omission  in  the 
stamping  of  said  original  instrument  has  been  corrected 
pursuant  to  law;  and  the  original  instrument  or  such 
certified  copy,  or  the  record  thereof,  may  be  used  in  all 
courts  and  places  in  the  same  manner  and  with  like  effect 
as  if  the  instrument  had  been  originally  stamped:  And 
provided  further,  That  in  all  cases  where  the  party  has  not_ 
affixed  the  stamp  required  by  law  upon  any  such  instru-  established, 
ment  issued,  registered,  sold,  or  transferred  at  a  time  when  stamped  Tit 
and  at  a  place  where  no  collection  district  was  established,  ward- 
it  shall  be  lawful  for  him  or  them,  or  any  party  having  an 
interest  therein,  to  affix  the  proper  stamp  thereto,  or,  if 
the  original  be  lost,  to  a  copy  thereof.  But  no  right 
acquired  in  good  faith  before  the  stamping  of  such  instru- 
ment, or  copy  thereof,  as  herein  provided,  if  such  record 
be  required  by  law,  shall  in  any  manner  be  affected  by 
such  stamping  as  aforesaid. 

See  section  3422,  page  329. 

Post  stamping  of  instruments  or  documents  of  any  description 
mentioned  in  Schedule  A  after  the  expiration  of  twelve  months 
from  date  of  issue.     (T.  D.  21539,  1889.) 

Collectors  can  not  remit  penalty  for  omission  of  stamps  where 
the  instrument  was  presented  more  than  twelve  months  after  it 
was  issued.     (T.  D.  21368,  July  10,  1899.) 

The  action  of  collector  in  stamping  the  instrument  under  sec- 
tion 13,  act  of  June  13,  1898,  cures  the  defect  and  operates  retro- 
actively.    (T.  D.  164,  June  27,  1900.) 

Instruments  to  be  validated  may  be  sent  to  collector  by  mail, 
with  affidavit,  instead  of  being  personally  brought  to  the  col- 
lector's office.     (T.  D.  20696,  1889.) 

Stamping  and  validating  instruments.  (T.  D.  644,  T.  D. 
749.) 

There  is  no  authority  of  law  for  the  sale  of  documentary  stamps 
except  for  the  purpose  and  in  the  manner  provided  in  section 
13,  supra. 


Where  no  col- 
lection district  is 
in- 
strument may  be 


<•■*. 


340  STAMP   TAXES   ON   SPECIFIC   OBJECTS. 

instrument  not  SEC#  14.  That  hereafter  no  instrument,  paper,  or  docu- 
evid^nceS1if  eun-ment  required  by  law  to  be  stamped,  which  has  been 
stamped.  signed  or  issued  without  being  duly  stamped,  or  with  a 

deficient  stamp,  nor  any  copy  thereof,  shall  be  recorded 
or  admitted,  or  used  as  evidence  in  any  court  until  a  legal 
stamp  or  stamps,  denoting  the  amount  of  tax,  shall  have 
been  affixed  thereto,  as  prescribed  by  law: 

***** 

Instruments  requiring  stamps  are  not  competent  evidence  in 
courts  unless  stamped.     (T.  D.  21074,  1889.) 

Unstamped  instruments  inadmissible  as  evidence,  in  Federal 
courts.     (T.  D.  474.) 

Not  lawful  to     gEC    i5#  That  it  shall  not  be  lawful  to  record  or  register 

record   instru-  .  ,  ,  iiiau 

ments    until  any  instrument,  paper,  or  document  required  by  law  to  be 
stamped.  stamped  unless  a  stamp  or  stamps  of  the  proper  amount 

shall  have  been  affixed  and  canceled  in  the  manner  pre- 
scribed by  law;  and  the  record,  registry,  or  transfer  of  any 
such  instruments  upon  which  the  proper  stamp  or  stamps 
aforesaid  shall  not  have  been  affixed  and  canceled  as  afore- 
said shall  not  be  used  in  evidence. 

REFUND    OF   TAX    OX    EXPORT    BILLS    OF   LADING. 

lading01*  Mls  °f  Sec  2  [of  An  act  to  provide  for  refunding  taxes  paid 
upon  legacies  and  bequests  for  uses  of  a  religious,  charitable, 
or  educational  character,  for  the  encouragement  of  art,  and 
so  forth,  under  the  act  of  June  13,  1898,  and  for  other 
purposes,  approved  June  27,  1902.  (32  Stat.,  406)]. 
That  the  Secretary  of  the  Treasury,  under  rules  and  regu- 
lations to  be  prescribed  by  him,  be,  and  he  is  hereby, 
authorized  and  directed  to  refund,  out  of  any  money  in 
the  Treasury  not  otherwise  appropriated,  sums  paid  for 
documentary  stamps  used  on  export  bills  of  lading,  such 
stamps  representing  taxes  which  were  illegally  assessed 
and  collected. 

Circular  No.  628,  July  8,  1902.  Rules  and  regulations  for  the 
refunding  of  amounts  paid  for  documentary  stamps  used  on 
export  bills  of  lading. 

Stamp  taxes  on  export  bills  of  lading  unconstitutional.  (Fair- 
bank  v.  U.  S.,  181  U.  S.,  283;  T.  D.  339). 

[Extract  from  an  act  making  appropriations  to  supply  deficiencies  in  the  appropria- 
tions for  the  fiscal  year  ending  June  30,  1907,  and  for  prior  years,  and  for  other  pur- 
poses, approved  Mar.  4,  1907,  (34  Stat.,  1373;  T.  D.  1144).] 

***** 

Export  ships-  To  enable  the  Secretary  of  the  Treasury,  under  the 
rules  and  regulations  to  be  prescribed  by  him,  to  audit 
and  refund  the  sums  paid  for  documentary  stamps  used 
on  export  ships'  manifests,  such  stamps  representing 
taxes  which  were  illegally  assessed  and  collected,  one 
hundred  and  twenty-five  thousand  dollars,  or  so  much 
thereof  as  may  be  necessary;  said  refund  to  be  made 


STAMP   TAXES   ON   SPECIFIC    OBJECTS.  341 

whether  said  stamp  duties  were  paid  under  protest  or 
not,  and  without  being  subject  to  any  statute  of  limita- 
tions. 

***** 

DOCUMENTARY    STAMPS    AFFIXED    TO    FOREIGN    BILES    OF 
EXCHANGE REFUNDING. 

An  Act  To  provide  for  refunding  stamp  taxes  paid  under  the  act  of 
June  13,  1898,  upon  foreign  bills  of  exchange  drawn  between  July  1, 
1898,  and  June  30,  1901,  against  the  value  of  products  of  merchandise 
actually  exported  to  foreign  countries  and  authorizing  rebate  of 
duties  on  anthracite  coal  imported  into  the  United  States  from  Octo- 
ber 6,  1902,  to  January  15,  1903,  and  for  other  purposes,  approved 
February  1,  1909.     (35  Stat.,  590.) 

That  the  Secretary  of  the  Treasury  be,  and  he  is  Jgg bUls  of 
hereby,  authorized  and  directed  to  pay,  out  of  any 
money  in  the  Treasury  not  otherwise  appropriated,  to  the 
persons  or  corporations  who  have,  prior  to  July  first, 
nineteen  hundred  and  four,  duly  presented  their  respec- 
tive claims  therefor,  the  sums  paid  for  documentary 
stamps  used  on  foreign  bills  of  exchange  drawn  between 
July  first,  eighteen  hundred  and  ninety-eight,  and  June 
thirtieth,  nineteen  hundred  and  one,  against  the  value 
of  products  or  merchandise  actually  exported  to  foreign 
countries,  such  stamps  representing  taxes  which  were 
illegally  assessed  and  collected,  said  refund  to  be  made 
whether  said  stamp  taxes  were  paid  under  protest  or 
duress  or  not. 

Regulations  for  the  refunding  of  sums  paid  for  documentary 
stamps  used  on  foreign  bills  of  exchange  drawn  between  July  1, 
1898,  and  June  30,  1901,  against  the  value  of  products  or  mer- 
chandise actually  exported  to  foreign  countries.  February  23, 
1909.     T.  D.  1467. 

Extension  of  time. — The  time  within  which  claims  may  be 
presented  for  refunding  the  sums  paid  for  documentary  stamps 
used  on  foreign  bills  of  exchange  drawn  between  July  1,  1898, 
and  June  30,  1901,  against  the  value  of  products  or  merchandise 
actually  exported  to  foreign  countries,  specified  in  the  above 
act  was  extended  to  December  1,  1909.  Act  of  August  5,  1909 
(36  Stat.,  118,  120).     (Urgent .deficiency  appropriation  act.) 

An  Act  Making  appropriations  to  supply  deficiencies  in  appropriations 
for  the  fiscal  year  1910,  and  for  other  purposes,  approved  June  25, 
1910  (36  Stat.,  779). 

***** 

Refund  of  sums  paid  for  documentary  stamps:  The  ?efim d of *™^ 
time  within  which  claims  may  be  presented  for  refunding  mentary1"  stamps 
the  sums  paid  for  documentary  stamps  used  on  foreign  ^d  onLxehanf? 
bills  of  exchange  drawn  between  July  first,  eighteen  hun-extensionoftime- 
dred  and  ninety-eight,  and  June  thirtieth,  nineteen 
hundred  and  one,  against  the  value  of  products  or  mer- 
chandise actually  exported  to  foreign  countries,  specified 


342  STAMP   TAXES   ON   SPECIFIC    OBJECTS. 

in  the  Act  entitled  "An  Act  to  provide  for  refunding 
stamp  taxes  paid  under  the  Act  of  June  thirtieth,  eighteen 
hundred  and  ninety-eight,  upon  foreign  bills  of  exchange 
drawn  between  July  first,  eighteen  hundred  and  ninety- 
eight,  and  June  thirtieth,  nineteen  hundred  and  one, 
against  the  value  of  products  or  merchandise  actually 
exported  to  foreign  countries  and  authorizing  rebate  of 
duties  on  anthracite  coal  imported  into  the  United 
States  from  October  sixth,  nineteen  hundred  and  two,  to 
January  fifteenth,  nineteen  hundred  and  three,  and  for 
other  purposes,"  approved  February  first,  nineteen  hun- 
dred and  nine,  be,  and  is  hereby,  extended  to  December 
first,  nineteen  hundred  and  ten.     *     *     * 

Time   further   extended  to  December   1,  1911.     (Deficiency 
appropriation  act  of  March  4,  1911.) 


Chapter  Fifteen. 


PLAYING  CARDS. 

[Act  of  Aug.  28,  1894  (28  Stat.,  509).] 


Sec 

38. 


Sec. 
44. 


45. 


46. 


47. 


Manufacturer  removing  or  reusing 
any  stamp,  wrapper,  or  cover  for 
the  purpose  of  evading  the  tax  lia- 
ble to  a  fine  of  $50  and  forfeiture. 

Penalty  for  selling  or  exposing  for 
sale,  removing,  or  concealing  play- 
ing cards  without  having  affixed 
the  stamp  thereto. 

Every  person  who  offers  or  exposes 
for  sale  any  playing  cards,  whether 
of  domestic  or  foreign  manufac- 
ture, shall  be  deemed  the  manu- 
facturer thereof  and  liable  to 
the  tax. 

Assessment  to  be  made  by  the  com- 
missioner in  certain  cases. 


Tax  of  2  cents  on  every  pack,  contain- 
ing not  more  than  fifty-four  cards, 
whether  manufactured,  sold,  or 
removed,  or  in  stock  of  any  dealer. 

39.  Adhesive  stamps  to  be  affixed  to  each 

package,  and  canceled  by  the  per- 
son using  the  stamp.     Penalty,  $50. 

40.  Manufacturer  to  register  with  the  col- 

lector of  the  district.  Failure  to 
register,  penalty  $50. 

41.  Stamps  to  be  furnished  by  the  col- 

lector to  registered  manufacturers 
and  importers. 

42.  Penalty  for  counterfeiting,  defacing, 

or  removing  stamp  or  illegal  use  of 
the  same. 

43.  Penalty  for  removal  or  sale  of  playing 

cards  without  having  stamp  affixed. 
Cards  may  be  removed  for  export 
without  previous  payment  of  tax. 

Sec.  38.  [Act  of  Aug.  28, 1894  GW  Stat, 509).}  That  on  Ton*e££p£* 
and  after  the  first  day  of  August,  eighteen  hundred  and  of  paying  cards. 
ninety-four,  there  shall  be  levied,  collected,  and  paid,  by 
adhesive  stamps,  a  tax  of  two  cents  for  and  upon  every 
pack  of  playing  cards  containing  not  more  than  fifty-four 
cards,  manufactured  and  sold  or  removed,  and  also  upon 
every  pack  in  the  stock  of  any  dealer  on  and  after  that 
date ;  and  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  shall  make  reg- 
ulations as  to  dies  and  adhesive  stamps. 

Where  packages  of  playing  cards  are  sent  out  from  the  factory 
duly  stamped  and  are  thereafter  opened  and  stamp  broken,  the 
cards  can  not  be  returned  to  the  packages  and  sold  under  a 
broken  stamp;  a  new  stamp  must  be  affixed  to  each  package 
and  duly  canceled.  (T.  D.  21634,  1889;  see  also  U.  S.  v.  Neu- 
staedter,  149  Fed.  Rep.,  1010,  T.  D.  1100.) 

Miniature  playing  cards,  intended  for  use  with  packages  of 
merchandise,  one  card  to  a  package,  must  be  put  up  in  packages 
and  properly  stamped  by  the  manufacturer.  (T.  D.  843,  Nov. 
17,  1904.) 

Tax  must  be  paid  on  every  pack  of  cards  intended  for  use  in 
playing  games  of  skill  or  chance  in  lieu  of  ordinary  playing  cards. 
(T.  D.  959,  Dec.  13,  1905.) 

Tax  must  be  paid  on  every  pack  of  cards  even  though  contain- 
ing half  the  ordinary  number  of  cards.     (T.  D.  1023,  July  2, 1906). 


Affixing 
cancellation 


Sec.  39.  That  in  all  cases  where  an  adhesive  stamp  is ^ 
used  for  denoting  the  tax  imposed  by  this  Act  upon  play- stamp. 
ing  cards,  except  as  hereinafter  provided,  the  person  using 

343 


and 
of 


344  PLAYING   CARDS. 

or  affixing  the  same  shall  write  thereon  the  initials  of  his 
name  and  the  date  on  which  such  stamp  is  attached  or  used 
so  that  it  may  not  again  be  used.  And  every  person  who 
fraudulently  makes  use  of  an  adhesive  stamp  to  denote  any 
tax  imposed  by  this  Act  without  so  effectually  canceling 
and  obliterating  such  stamp  shall  forfeit  the  sum  of  fifty 
dollars.  The  Commissioner  of  Internal  Revenue  is  au- 
thorized toj:>rescribe  such  method  for  the  cancellation  of 
stamps  as  substitute  for,  or  in  addition  to  the  method  pre- 
scribed in  this  section  as  he  may  deem  expedient  and  effec- 
tual. And  he  is  authorized,  in  his  discretion,  to  make  the 
application  of  such  method  imperative  upon  the  manufac- 
turers of  playing  cards. 
m  a n  u  factnrer  Sec.  40.  That  every  manufacturer  of  playing  cards  shall 
^oiiectOT,epenTity  register  with  the  collector  of  the  district  his  name  or  style, 
so%5o!ure  t0  doplace  °f  residence,  trade,  or  business,  and  the  place  where 
such  business  is  to  be  carried  on,  and  a  failure  to  register 
as  herein  provided  and  required  shall  subject  such  person 
to  a  penalty  of  fifty  dollars. 

Where  playing  cards  are  lithographed  on  large  sheets,  and  sent 
to  another  person  to  be  cut  and  finished,  the  latter  is  held  to  be 
the  manufacturer  and  required  to  register  and  stamp  the  cards. 
(T.  D.  410,  Sept.  21,  1901.) 

kept^coiiecto^  Sec-  4L  That  the  Commissioner  of  Internal  Revenue 
and  furnished  to  shall  cause  to  be  prepared,  for  payment  of  the  tax  upon 
facturers,  import- playing  cards,  suitable  stamps  denoting  the  tax  thereon. 
ha^g^tock^on^110^  stamps  shall  be  furnished  to  collectors  requiring 
hand.  them,  and  collectors  shall,  if  there  be  any  manufacturers 

of  playing  cards  within  their  respective  districts,  keep  on 
hand  at  all  times  a  supply  equal  in  amount  to  two  months' 
sales  thereof,  and  shall  sell  the  same  only  to  such  manu- 
facturers as  have  registered  as  required  by  law  and  to 
importers  of  playing  cards,  who  are  required  to  affix  the 
same  to  imported  playing  cards,  and  to  persons  who  are  re- 
quired by  law  to  affix  the  same  to  stocks  of  playing  cards' 
on  hand  when  the  tax  thereon  imposed  first  takes  effect. 
Every  collector  shall  keep  an  account  of  the  number  and 
denominate  values  of  the  stamps  sold  by  him  to  each  man- 
ufacturer and  to  other  persons  above  described. 

Decision  as  to  packing  and  stamping  cards  when  sold  in  leather, 
plush,  celluloid,  or  metal  cases.     (T.  D.  19024,  1898.) 

counterfeiting  ^EC'  42°  That  if  any  person  shall  forge  or  counterfeit,  or 
defacing,  or  re'  cause  or  procure  to  be  forged  or  counterfeited,  any  stamp, 
im?rgaistuse'  of  die,  plate,  or  other  instrument,  or  any  part  of  any  stamp, 
same.  c\[0i  plate,  or  other  instrument  which,  shall  have  been  pro- 

vided or  may  hereafter  be  provided,  made,  or  used  in  pur- 
suance of  the  provisions  of  this  Act  or  of  any  previous 
provisions  of  law  on  the  same  subjects,  or  shall  forge,  coun- 
terfeit, or  resemble,  or  cause  or  procure  to  be  forged,  coun- 
terfeited, or  resembled  the  impression  or  any  part  of  the 
impression  of  any  such  stamp,  die,  plate,  or  other  instru- 
ment, as  aforesaid,  upon  any  paper,  or  shall  stamp  or  mark 
or  cause  or  procure  to  be  stamped  or  marked  any  paper 


PLAYING   CABDS.  345 

with  any  such  forged  or  counterfeited  stamp,  die,  or  plate, 
or  other  instrument  or  part  of  any  stamp,  die,  plate,  or 
other  instrument,  as  aforesaid,  with  intent  to  defraud  the 
United  States  of  any  of  the  taxes  hereby  imposed  or  any 
part  thereof;  or  if  any  person  shall  utter,  or  sell,  or  expose 
to  sale  any  paper,  article,  or  thing  having  thereupon  the 
impression  of  any  such  counterfeited  stamp,  die,  plate,  or 
other  instrument,  or  any  part  of  any  stamp,  die,  plate,  or 
other  instrument,  or  any  such  forged,  counterfeited,  or 
resembled  impression,  or  part  of  impression,  as  aforesaid, 
knowing  the  same  to  be  forged,  counterfeited,  or  resembled 
or  if  any  person  shall  knowingly  use  or  permit  the  use  of 
any  stamp,  die,  plate,  or  other  instrument  which  shall  have 
been  so  provided,  made,  or  used,  as  aforesaid,  with  intent 
to  defraud  the  United  States;  or  if  any  person  shall  fraud- 
ulently cut,  tear,  or  remove,  or  cause  or  procure  to  be  cut, 
torn,  or  removed,  the  impression  of  any  stamp,  die,  plate, 
or  other  instrument,  which  shall  have  been  provided,  made, 
or  used  in  pursuance  of  this  Act,  or  of  any  previous  pro- 
visions of  law  on  the  same  subjects,  from  any  paper,  or 
any  instrument  or  writing  charged  or  chargeable  with  any 
of  the  taxes  imposed  by  law;  or  if  any  person  shall  fraudu- 
lently use,  join,  fix,  or  place,  or  caused  to  be  used,  joined, 
fixed,  or  placed,  to,  with,  or  upon  any  paper,  or  any  instru- 
ment or  writing  charged  or  chargeable  with  any  of  the 
taxes  hereby  imposed,  any  adhesive  stamp,  or  the  impres- 
sion of  any  stamp,  die,  plate,  or  other  instrument,  which 
shall  have  been  provided,  made,  or  used  in  pursuance  of 
law,  and  which  shall  have  been  cut,  torn,  or  removed  from 
any  other  paper  or  any  instrument  or  writing  charged  or 
chargeable  with  any  of  the  taxes  imposed  by  law;  or  if  any 
person  shall  willfully  remove  or  cause  to  be  removed,  alter 
or  cause  to  be  altered,  the  cancelling  or  defacing  marks  on 
any  adhesive  stamp,  with  intent  to  use  the  same,  or  to 
cause  the  use  of  the  same,  after  it  shall  have  been  once 
used,  or  shall  knowingly  or  willfully  sell  or  buy  such 
washed  or  restored  stamps  or  offer  the  same  for  sale,  or 
give  or  expose  the  same  to  any  person  for  use,  or  know- 
ingly use  the  same,  or  prepare  the  same  with  intent  for  the 
further  use  thereof;  or  if  any  person  shall  knowingly  and 
without  lawful  excuse  (the  proof  whereof  shall  lie  on  the 
person  accused)  have  in  his  possession  any  washed,  re- 
stored, or  altered  stamps,  which  have  been  removed  from 
any  article,  paper,  instrument,  or  writing,  then,  and  in 
every  such  case,  every  person  so  offending,  and  every  per- 
son knowingly  and  willfully  aiding,  abetting,  or  assisting 
in  committing  any  such  offense  as  aforesaid,  shall,  on  con- 
viction thereof,  forfeit  the  said  counterfeit,  washed,  re- 
stored, or  altered  stamps,  and  the  articles  upon  which  they 
are  placed  and  be  punished  by  fine  not  exceeding  one  thou- 
sand dollars,  or  by  imprisonment  and  confinement  to  hard 
labor  not  exceeding  five  years,  or  both,  at  the  discretion  of 
the  court.  And  the  fact  that  any  adhesive  stamp  so 
bought,  sold,  offered  for  sale,  used,  or  had  in  possession  as 


346  PLAYING   CARDS. 

aforesaid,  has  been  washed  or  restored  by  removing  or 
altering  the  cancelling  or  defacing  marks  thereon,  shall  be 
prima-facie  proof  that  such  stamp  has  been  once  used  and 
removed  by  the  possessor  thereof  from  some  paper,  instru- 
ment, or  writing  charged  with  taxes  imposed  by  law,  in 
violation  of  the  provisions  of  this  section. 

This  is  a  substantial  reenactment  of  section  3429,  Revised  Stat- 
utes, as  amended  by  section  17,  act  of  March  1,  1879,  the  only 
change  being  the  substitution  of  the  word  "act"  for  "chapter.  " 

Penalty  for  re-     Sec.  43.  That  whenever  any  person  makes,  prepares, 

raoval  or  sale  of         i         n  »  a*  ■   i i  r       • 

playing    card sand  sells  or  removes  lor  consumption  or  sale,  playing 
stamps^fflxed!118  cards,   whether  of  domestic  manufacture  or  imported, 
upon  which  a  tax  is  imposed  by  law,  without  affixing 
thereto  an  adhesive  stamp  denoting  the  tax  before  men- 
tioned, he  shall  incur  a  penalty  of  fifty  dollars  for  every 
Playing  cards  omission   to   affix  such   stamp:  Provided,  That  playing 
ceptedXport    ex"  cards  may  be  removed  from  the  place  of  manufacture 
for  export  to  a  foreign  country,  without  payment  of  tax 
or  affixing  stamps  thereto,  under  such  regulations  and 
the  filing  of  such  bonds  as  the  Commissioner  of  Internal 
Revenue,   with   the   approval   of   the   Secretary   of   the 
Treasury,  may  prescribe. 

Concerning  the  exportation  without  payment  of  tax  of  play- 
ing cards,  see  Regulations,  No.  29. 

No.  19  Rev.,  Supplement  No.  1.  Relative  to  the  exportation 
of  playing  cards  by  parcels  post.     (T.  D.  1668.) 

Where  a  box  of  playing  cards  is  opened  and  cards  withdrawn, 
a  new  stamp  must  be  affixed  to  the  package  before  its  resale. 
The  broken  stamp  can  not  protect  the  package.  In  sending 
packs  of  cards  abroad,  even  as  samples,  all  the  provisions  of 
the  law  and  regulations  relating  to  the  exportation  of  playing 
cards  must  be  complied  with,  unless  tax  stamps  are  affixed  to 
these  packages.    (T.  D.  21669,1899.) 

Penalty  for  re-      Sec.  44.  That  every  manufacturer  or  maker  of  playing 

moval    or    reuse  ,  ■■  P.         .-,       ^  i  i   ±i  }_• 

of  stamp,  wrap- cards  who,  alter  the  same  are  so  made,  and  the  particu- 
the'  purpose  foflara  hereinbefore  required  as  to  stamps  have  been  corn- 
evading  the  tax.  plied  with,  takes  off,  removes,  or  detaches,  or  causes,  or 
permits,  or  suffers  to  be  taken  off,  or  removed,  or  de- 
tached, any  stamp,  or  who  uses  any  stamp,  or  any  wrapper 
or  cover  to  which  any  stamp  is  affixed,  to  cover  any  other 
article  or  commodity  than  that  originally  contained  in 
such  wrapper  or  cover,  with  such  stamp  when  first  used, 
with  the  intent  to  evade  the  stamp  duties,  shall,  for  every 
such  article,  respectively,  in  respect  of  which  any  such 
offense  is  committed,  be  subject  to  a  penalty  of  fifty  dol- 
lars, to  be  recovered  together  with  the  costs  thereupon 
accruing;  and  every  such  article  or  commodity  as  afore- 
said shall  also  be  forfeited. 
Penalty  for     Sec.  45.  That  every  maker  or  manufacturer  of  playing 
Sgmfor0saieXp?I- cards  who,  to  evade  the  tax  or  duty  chargeable  thereon, 
ceaiir?g'  oriac?n"or  any  part  thereof,  sells,  exposes  for  sale,  sends  out,  re- 
cards  without  af-  moves,  or  delivers  anv  playing  cards  before  the  duty 
fixing  the  stamp.  thereon  hftg  been  fuUy       idj   by   affixing  thereon   the 

proper  stamp,  as  provided  by  law,  or  who,  to  evade  as 
aforesaid,  hides  or  conceals,  or  causes  to  be  hidden  or 


PLAYING   CAEDS.  347 

concealed,  or  removes  or  conveys  away,  or  deposits,  or 
causes  to  be  removed  or  conveyed  away  from  or  deposited 
in  any  place,  any  such  article  or  commodity,  shall  be 
subject  to  a  penalty  of  fifty  dollars,  together  with  the 
forfeiture  of  any  such  article  or  commodity. 

Sec.  46.  That  the  tax  on  playing  cards  shall  be  paid  by    Playing   cards 
the  manufacturer  thereof.     Every  person  who  offers  orf0rei?mrf  manu- 
exposes  for  sale  playing  cards,  whether  the  articles  so  bTofilred^or  ex- 
offered  or  exposed  are  of  foreign  manufacture  and  ini-ppsed    for    sale 
ported  or  are  of  domestic  manufacture,  shall  be  deemed  stamp1  denotog 
the  manufacturer  thereof,  and  subject  to  all  the  duties,  payment  of  tax. 
liabilities,  and  penalties  imposed  by  law  in  regard  to  the 
sale  of  domestic  articles  without  the  use  of  the  proper 
stamps  denoting  the  tax  paid  thereon,  and  all  such  articles 
of  foreign  manufacture  shall,  in  addition  to  the  import 
duties  imposed  on  the  same,  be  subject  to  the  stamp  tax 
prescribed  in  this  Act. 

Sec.  47.  That  whenever  any  article  upon  which  a  tax  Assessment  to 
is  required  to  be  paid  by  means  of  a  stamp  is  sold  or  re-  tw0nyears  X 
moved  for  sale  by  the  manufacturer  thereof,  without  the tain  cases- 
use  of  the  proper  stamp,  in  addition  to  the  penalties  im- 
posed by  law  for  such  sale  or  removal,  it  shall  be  the  duty 
of  the  Commissioner  of  Internal  Revenue,  within  a  period 
of  not  more  than  two  years  after  such  removal  or  sale, 
upon  such  information  as  he  can  obtain,  to  estimate  the 
amount  of  the  tax  which  has  been  omitted  to  be  paid,  and 
to  make  an  assessment  therefor  upon  the  manufacturer 
or  producer  of  such  article.  Pie  shall  certify  such  assess- 
ment to  the  collector,  who  shall  immediately  demand 
payment  of  such  tax,  and  upon  the  neglect  or  refusal  of 
payment  by  such  manufacturer  or  producer,  shall  pro- 
ceed to  collect  the  same  in  the  manner  provided  for  the 
collection  of  other  assessed  taxes. 

This  is  a  reenactment,  without  change,  of  section  3437,  Revised 
Statutes. 

Cards  for  game  called  "authors,"  and  the  like,  differing 
wholly  from  ordinary  playing  cards,  are  held  not  to  be  subject 
to  tax  under  this  act. 

It  is  held  that  any  number  of  cards  in  a  deck  above  54  and  not 
exceeding  another  of  54  must  be  regarded,  for  the  purposes  of 
this  act,  as  belonging  to  another  pack,  upon  which  an  additional 
tax  of  2  cents  must  be  paid.     (40  Int.  Rev.  Rec,  277.) 


Chapter  Sixteen. 
BANKS  AND  BANKERS. 


Sec. 
3407 


Sec. 

[3413ft.]  Tax   on   circulation   other  than 

national   banks   used    and    paid 

out. 
[3413c]  Return  of  amounts  and  payment 

of  tax. 
3414.  Banks'  and  bankers'   monthly  re- 
turns. 
In  default  of  return,  commissioner 

to  estimate,  etc. 
State  banks  converted  into  national 

banks;  returns,  how  made. 
3417.  Certain  provisions  of  this  chapter 

not  to  apply  to  national  banks. 


3415. 
3416. 


Definition  of  words  "bank"  and 
"banker." 

3408  (amended).  Tax  on  circulation  of 
banks  and  bankers. 

3409.  Taxes,  when  payable;  how  calcu- 
lated. 

3411.  Circulation,  when  exempted  from 

tax. 

3412.  Tax  on  notes  of  persons  or  State 

banks  used  as  circulation,  etc. 

3413.  Tax  on  notes  of  town,  city,  or  mu- 

nicipal corporations  paid  out  by 
banks,  etc. 
[3413a.]  Tax  on  certain  parties'  own  notes 
used  for  circulation  and  paid  out 
by  them. 

Definition     of     gEC     3407.  Every   incorporated   or   other   bank,    and 

words      "bank  _  J  i  .  ,  j»  i_       • 

and  "banker."  every  person,  firm,  or  company  having  a  place  or  business 
where  credits  are  opened  by  the  deposit  or  collection  of 
money  or  currency,  subject  to  be  paid  or  remitted  upon 
draft,  check,  or  order,  or  where  money  is  advanced  or 
loaned  on  stocks,  bonds,  bullion,  bills  of  exchange,  or 
promissory  notes,  or  where  stocks,  bonds,  bullion,  bills 
of  exchange,  or  promissory  notes  are  received  for  dis- 
count or  for  sale,  shall  be  regarded  as  a  bank  or  as  a 
banker. 

Who  are  bankers  under  this  section?  (Selden  v.  Equitable 
Trust  Co.,  94  U.S.,  419;  23  Int.  Rev.  Rec,  171;  Warren  v.  Shook, 
91  U.  S.,  704;  22  Int.  Rev.  Rec,  77.) 

Liability  of  foreign  banks  doing  business  in  United  States. 
Suits  to  recover  taxes  on  capital  employed.  (United  States  v. 
Bank  of  Montreal;  30  Int.  Rev.  Rec,  310;  21  Fed.  Rep.,  236.) 

A  loan  and  trust  company  regarded  as  a  bank  (U.  S.  v.  Farm- 
er's L.  &  T.  Co.,  25  Fed.  Cas.  No.  15070;  3  Int.  Rev.  Rec,  62.) 

Sec.  3408.  There  shall  be  levied,  collected,  and  paid,  as 
hereafter  provided : 


Tax  on  circula- 
tion. 


Third.  A  tax  of  one-twelfth  of  one  per  centum  each 
month  upon  the  average  amount  of  circulation  issued  by 
any  bank,  association,  corporation,  company,  or  person, 
including  as  circulation  all  certified  checks  and  all  notes 
and  other  obligations  calculated  or  intended  to  circulate 
or  to  be  used  as  money,  but  not  including  that  in  the 
vault  of  the  bank,  or  redeemed  and  on  deposit  for  said 
bank;   and   an   additional   tax   of  one-sixth  of  one  per 

348 


BANKS   AND   BANKERS.  349 

centum  each  month  upon  the  average  amount  of  such 
circulation,  issued  as  aforesaid,  beyond  the  amount  of 
ninety  per  centum  of  the  capital  of  any  such  bank, 
association,  corporation,  company,  or  person. 

In  the  case  of  banks  with  branches,  the  tax  herein  pro-    on  circulation 
vided  shall  be  assessed  upon  the  circulation  of  each  branch  of  branch  banks. 
severally,  and  the  amount  of  capital  of  each  branch  shall 
be  considered  to  be  the  amount  allotted  to  it. 

Taxes  on  deposits  and  capital  repealed.  Act  of  March  3,  1883. 
(22  Stat.,  488.)  The  taxation  ceased  December  1, 1882.  (29  Int. 
Rev.  Rec,  171;  17  Op.  Atty.  Gen.,  539.) 

When  the  plaintiff  admits  that  his  business  was  that  of  buying 
and  selling  stocks  for  his  customers,  and  that  in  such  business 
he  employed  capital,  he  proves  that  he  was  a  banker  within  the 
statutory  definition,  and  that,  within  the  meaning  of  section 
3408,  his  capital  was  employed  in  the  business  of  banking. 
(Richmond  v.  Blake  (1889),  132  U.  S.,  592;  36  Int.  Rev.  Rec, 
24.) 

The  tax  on  circulation  of  national  banks  is  paid  to  the  Treas- 
urer of  the  United  States.  (Sec.  5214  as  amended.  See  sec. 
3417,  p.  352.) 

Certificates  of  indebtedness  issued  by  a  person  or  a  corporation 
are  not  taxable  as  "circulation"  under  section  3408,  unless  in- 
tended to  circulate  as  money.  (United  States  v.  Wilson,  106 
U.  S.,  620.) 

What  is  capital?  (Mechanics  and  Farmers'  Bank  v.  Town- 
send,  collector,  5  Blatch.,  315.) 

Merchant's  Nat'l  Bank  v.  U.  S.,  42  Ct.  Cls.,  6. 

Sec.  3409.  The  taxes  provided  in  the  preceding  section    Taxes,  when 
shall  be  paid  semi-annually,  on  the  first  day  of  January 
and  the  first  day  of  July;  but  the  same  shall  be  calculated    How  caicu- 
at  the  rate  per  month  as  prescribed  by  said  section,  solated" 
that  the  tax  for  six  months  shall  not  be  less  than  the 
aggregate  would  be  if  such  taxes  were  collected  monthly. 

In  regard  to  abating  tax  against  insolvent  national,  State,  and 
savings  banks,  see  section  22,  act  of  March  1,  1879  (20  Stat., 
327),  and  Supplement,  Revised  Statutes  No.  1,  page  243. 
(Johnson  v.  U.  S.,  17  Ct.  Cls.,  157;  Jackson  v.  U.  S.,  20  Ct.  Cls., 
304.) 

Sec.   3411.  Whenever  the  outstanding  circulation  of    circulation, 

t         i  .     ,  •  ,  •  0  when    exempted 

any  bank,  association,  corporation,  company,  or  person,  from  tax. 
is  reduced  to  an  amount  not  exceeding  five  per  centum 
of  the  chartered  or  declared  capital  existing  at  the  time 
the  same  was  issued,  said  circulation  shall  be  free  from 
taxation;  and  whenever  any  bank  which  has  ceased  to 
issue  notes  for  circulation  deposits  in  the  Treasury  of 
the  United  States,  in  lawful  money,  the  amount  of  its 
outstanding  circulation,  to  be  redeemed  at  par,  under 
such  regulations  as  the  Secretary  of  the  Treasury  shall 
prescribe,  it  shall  be  exempt  from  any  tax  upon  such  cir- 
culation. 

Legislation  affecting  taxes  upon  the  circulation  of  State 
banks.     (Merchants  National  Bank  v.  U.  S.,  42  Ct.  Cls.,  6.) 

SeCo  3412.  Every  national  banking  association,  State  Jsons^sfate 
bank,  or  State  banking  association,  shall  pay  a  tax  of  ten  banks  used  as  cir- 
per  centum  on  the  amount  of  notes  of  any  person,  or  of culatlon' etc- 


350  BANKS   AND    BANKERS. 

any  State  bank  or  State  banking  association,  used  for 
circulation  and  paid  out  by  them. 

The  act  of  March  3,  1875  (18  Stat.,  507),  provided  that  the 
Secretary  of  the  Treasury  be  authorized  and  directed  to  settle 
and  release  any  claims  for  tax  on  circulation  of  evidences  of 
indebtedness  made  against  any  mining,  manufacturing,  or  other 
corporations  other  than  against  any  national  banking  association, 
State  bank,  or  banking  association,  by  such  corporations  paying 
the  tax,  without  penalty,  that  shall  have  accrued  thereon  since 
November  first,  eighteen  hundred  and  seventy-three. 

Internal-revenue  tax  on  State  banks.  (14  Op.  Atty.  Gen.,  98; 
16  Int.  Rev.  Rec,  57.) 

The  tax  of  10  per  cent  on  State  bank  circulation  was  designed 
to  drive  all  such  circulation  out  of  existence.  (Remark  of  the 
court  in  Head  Money  Cases.     112  U.  S.,  580,  596.) 

ofTt^n0ncitno^     Sec.  3413.  Every  national  banking  association,  State 
municipal  corpo-bank,  or  banker,  or  association,  shall  pay  a  tax  of  ten  per 
by  ban'ks!aete.out  centum  on  the  amount  of  notes  of  any  town,  city,  or 
municipal  corporation,  paid  out  by  them. 

This  tax  not  a  direct  tax  and  not  repugnant  to  the  Constitu- 
tion. (Veazie  Bank  v.  Fenno,  8  Wall.,  533;  10  Int.  Rev.  Rec, 
195.) 

Above  decision  cited  and  approved  (National  Bank  v.  United 
States,  101 U.  S.,  1)  where  the  United  States  sued  a  national  bank 
for  10  per  cent  of  the  notes  of  the  city  of  Little  Rock  paid  out. 

Tax  on  circulation  of  State  banks  (Deposit  Savings  Associa- 
tion v.  Marks,  3  Woods,  553;  23  Int.  Rev.  Rec,  241,  Fed.  Cas.  No. 
3813.) 

Section  3583  provided  a  penalty  for  issuing  notes  for  a  less  sum 
than  $1  intended  to  circulate  as  money.  (United  States  v.  Van 
Auken  (96  U.  S.,  6  Otto)  366;  24  Int.  Rev.  Rec,  204;  U.  S.  v. 
Roussopulous,  95  Fed.  Rep.,  977.) 

Section  3583  has  been  reproduced  in  section  178  of  the 
Criminal  Code.     Act  of  March  4,  1909.     (35  Stat.,  1088.) 

tax^on^arte*       [SeC*  3413a-]    \-SeC-  19  °f t7ie  act  °f  Febl  8>.  1875  V8  Stat> 

other^than"  ntsil).]  That  every  person,  firm,  association  other  than 
the1^' o^n^'ote"  national  bank  associations,  and  every  corporation,  State 
used  for  circuia-bani^  or  State  banking  association,  shall  pay  a  tax  of 
jon,  an  pai  ^^  ^^  centum  on  the  amount  of  their  own  notes  used 
for  circulation  and  paid  out  by  them. 
Ten  per  cent     [Sec.  34136.1  [Sec.  20  of the  act  of  Feb.  8,  1875.]     That 

tax    on    circula-       L  ^  n  •    .•  .■  n,     . 

tion  of  other  than  every  such  person,  nrm,  association,  corporation,  State 
Snaind  bS  bank,  or  State  banking  association,  and  also  every 
out.  national  banking  association,  shall  pay  a  like  tax  of  ten 

per  centum  on  the  amount  of  notes  of  any  person,  firm, 
association  other  than  a  national  banking  association,  or 
of  any  corporation,  State  bank,  or  State  banking  associa- 
tion, or  of  any  town,  city,  or  municipal  corporation,  used 
for  circulation  and  paid  out  by  them. 

The  main  object  of  the  Federal  legislation  on  this  subject 
was  to  secure  for  the  national  currency  the  exclusive  use  in  the 
United  States  as  a  circulating  medium;  and  this  object  was  sought 
to  be  effected  by  imposing  upon  all  competitive  money  such  a 
tax  as  would  make  its  issue  unprofitable.  (21  Op.  Atty.  Gen., 
560.) 

The  effect  of  the  act  of  February  8,  1875,  was  to  extend  sec- 
tions 3412  and  3413,  which  included  only  banks  and  banking 
associations,  to  all  persons,  firms,  associations,  and  corporations. 
The  subject  matter  of  the  tax,  to  wit,  "notes  used  for  circulation 
paid  out  by  them"  was  the  same. 


BANKS   AND    BANKEBS.  351 

Construction  of  sections  19  and  20,  act  of  February  8,  1875. 
(21  Int.  Rev.  Rec,  346.) 

"Wages  certificates"  of  Philadelphia  &  Reading  Railroad 
taxable.  (16  Op.  Atty.  Gen.,  341;  25  Int.  Rev.  Rec,  167;  see 
Philadelphia  &  R.  R.  Co.  v.  Pollock,  19  Fed.  Rep.,  401.) 

Tax  limited  to  obligations  payable  in  money.  (Hollister  v. 
Zion's  Co-operative  Mercantile  Institution,  111  U.  S.,  62;  30  Int. 
Rev.  Rec,  111.     In  re  Aldrich,  16  Fed.  Rep.,  369.) 

Glass  manufacturers'  cases.  Warrick  and  Stanger  were  glass 
manufacturers  and  issued  their  notes  in  various  amounts,  from 
5  cents  to  $5  each,  in  payment  of  wages.  These  notes  circulated 
as  money,  and  when  redeemed  were  constantly  reissued.  Every 
issue  of  the  notes  taxable.  (United  States  v.  Warrick,  31  Int. 
Rev.  Rec,  327;  25  Fed.  Rep.,  138.) 

A  national  bank  paying  out  on  checks  and  otherwise  notes  of 
a  bank  chartered  in  a  foreign  country  is  subject  to  tax  of  10  per 
cent  upon  the  total  amount  of  all  notes  it  has  received  and  used 
as  a  circulating  medium.     (20  Op.  Atty.  Gen.,  534.) 

Notes  of  Canadian  Banks  (33  Int.  Rev.  Rec,  405;  34  ibid.,  53, 
61,  and  77;  also  Treas.  Dec.  (1899),  No.  20507). 

Notes  of  the  Dominion  of  Canada  not  taxable.  (34  Int.  Rev. 
Rec,  61.) 

Notes  of  State  banks  taxable.     (T.  D.,  784.) 

Certified  checks  of  State  banks  not  notes.     (T.  D.,  885.) 

Ice  tickets  not  taxable.     (19  Op.  Atty.  Gen.,  98.) 

Opinion  of  the  Attorney  General  as  to  whether  pay-roll  checks 
issued  by  manufacturers  and  others,  and  certificates  issued  by 
clearing-house  associations  when  used  for  circulation,  are  notes 
within  the  meaning  of  section  19,  act  of  February  8,  1875.  The 
tax  applies  only  to  promissory  notes.  (39  Int.  Rev.  Rec,  398; 
20  Op.  Atty.  Gen.,  681.) 

Persons,  corporations,  banks,  etc.,  purchasing  from  foreigners 
and  returning  tourists  notes  of  foreign  banks  and  corporations 
for  resale  to  persons  going  abroad,  not  liable  for  10  per  cent  tax 
if  such  notes  are  not  used  for  circulation  in  United  States.  (T. 
D.,  1041,  Sept.  24,  1906.) 

Clearing-house  certificates  not  notes  within  the  meaning  of 
sec  34136.     (T.  D.,  1271,  Nov.  14,  1907.) 

[Sec.  3413c]  [Sec.  21  of  the  act  of  Feb.  8,  1875  (18  & ^0e^rt°  an°df 
Stat.,  311).]  That  the  amount  of  such  circulating  notes,  payment  of  tax. 
and  of  the  tax  due  thereon,  shall  be  returned,  and  the  tax 
paid  at  the  same  time,  and  in  the  same  manner,  and  with 
like  penalties  for  failure  to  return  and  pay  the  same,  as 
provided  by  law  for  the  return  and  payment  of  taxes 
on  *  *  *  circulation,  imposed  by  the  existing  pro- 
visions of  internal  revenue  law. 

Sec.  3414.  A  true  and  complete  return  of  the  monthly ,_  Banks'  and 

,(.•  lj.*  &       *       <tr  p  -l  ipji       bankers     montn- 

amount  ol  circulation,  *  *  *  as  aforesaid,  and  ol  the  iy  returns. 
monthly  amount  of  notes  of  persons,  town,  city,  or 
municipal  corporation,  State  banks,  or  State  banking 
associations  paid  out  as  aforesaid  for  the  previous  six 
months,  shall  be  made  and  rendered  in  duplicate  on  the 
first  day  of  December  and  the  first  day  of  June,  by  each 
of  such  banks,  associations,  corporations,  companies,  or 
persons,  with  a  declaration  annexed  thereto,  under  the 
oath  of  such  person,  or  of  the  president  or  cashier  of  such 
bank,  association,  corporation,  or  company,  in  such  form 
and  manner  as  may  be  prescribed  by  the  Commissioner 
of  Internal  Revenue,  that  the  same  contains  a  true  and 
faithful  statement  of  the  amounts  subject  to  tax,  as 
aforesaid;  and  one  copy  shall  be  transmitted  to  the  col- 


352  BANKS  AND   BANKEES. 

lector  of  the  district  in  which  any  such  bank,  association, 
corporation,  or  company  is  situated,  or  in  which  such, 
person  has  his  place  of  business,  and  one  copy  to  the 
Commissioner  of  Internal  Revenue. 

The  words  "of  deposits  and  of  capital"  are  omitted  in  line  2 
as  obsolete. 

return decaommis-  ^ec.  3415.  In  default  of  the  returns  provided  in  the 
si  oner  to  esti- preceding  section,  the  amount  of  circulation,  *  *  * 
mate,  etc.  anc|  ■ao^es  0£  persoiis,  town,  city,  and  municipal  corpora- 

tions, State  banks,  and  State  banking  associations  paid 
out,  as  aforesaid,  shall  be  estimated  by  the  Commissioner 
of  Internal  Revenue,  upon  the  best  information  he  can 
obtain.  And  for  any  refusal  or  neglect  to  make  return 
and  payment,  any  such  bank,  association,  corporation, 
company,  or  person  so  in  default  shall  pay  a  penalty  of 
two  hundred  dollars,  besides  the  additional  penalty  and 
forfeitures  provided  in  other  cases. 

The  words  "deposits,  capital"  omitted  in  line  2. 
See  section  3176,  page  89,  as  to  additional  penalties. 
(U.  S.  v.  N.  Y.  Guaranty  Co.,  8  Ben.,  269,  27  Fed.  Cas.,  No.  15, 
872;  21  Op.  Atty.  Gen.,  564.) 

state   banks     gEC  341 6.  Whenever  any  State  bank  or  banking  asso- 

converted    into..  .  .  ,      1      •  •  1     i         i  • 

national  banks;  ciation  li as  been  converted  into  a  national  banking 
made.rns'  ow  association,  and  such  national  banking  association  has 
assumed  the  liabilities  of  such  State  bank  or  banking 
association,  including  the  redemption  of  its  bills,  by  any 
agreement  or  understanding  whatever  with  the  repre- 
sentatives of  such  State  bank  or  banking  association, 
such  national  banking  association  shall  be  held  to  make 
the  required  return  and  payment  on  the  circulation  out- 
standing, so  long  as  such  circulation  shall  exceed  five 
per  centum  of  the  capital  before  such  conversion  of  such 
State  bank  or  banking  association. 

This  section  (3416)  is  practically  obsolete. 

certain  provi-  Sec.  3417.  The  provisions  of  this  chapter,  relating  to 
fer nSot  to  appYyto  the  tax  on  the  *  *  circulation  of  banks,  and  to  their 
national  banks.    retumSj  except  as  contained  in  sections    *     thirty-four 

i875Ct  n8ebsta\8,  num^re<^  anc^  e^eyen>  thirty-four  hundred  and  twelve, 
3i9).  'thirty-four  hundred  and  thirteen,  and  thirty-four  hundred 

and  sixteen,  and  such  parts  of  sections  thirty-four  hun- 
dred and  fourteen,  and  thirtv-four  hundred  and  fifteen 
as  relate  to  the  tax  of  ten  per  centum  on  certain  notes, 
shall  not  apply  to  associations  which  are  taxed  under 
and  by  virtue  of  Title  "National  Banks." 


Chapter  Seventeen. 

PROVISIONS  COMMON  TO    SEVERAL  OBJECTS   OF 

TAXATION. 


Sec. 
344:1, 


3444. 


3445. 


Fraudulent  claims  for  drawback; 
penalty. 

Collector's  monthly  account  of  ar- 
ticles in  bonded  warehouses  and 
articles  exported. 

Stamps,  instruments  for  attaching, 
canceling,  etc. 
3446  (amended).  Power  to  alter  or  change 

stamps,  marks,  labels,  etc 
[3446a.]  Stamps  to  be  sent  to  officers  by 

mail,  registered. 
3447.  Where  mode  of  assessing  or  collect- 
ing tax  is  not  provided  for;  regu- 
lations authorized. 

Internal-revenue  laws,  when  coex- 
tensive with  jurisdiction  of 
United  States. 

Removing  liquors  under  other  than 
the  proper  name  known  to  the 
trade;  penalty. 

Removing    or    concealing    articles 
with  intent  to  defraud;  forfeiture 
and  penalty. 
3451*  Fraudulently  executing  documents; 
penalty. 

Having  property  in  possession  with 
intent  to  sell  in  fraud  of  law  or 
to  evade  taxes;  penalty. 

Property  found  in  possession  in 
fraud  of  revenue  laws;  forfeiture. 

3454.  Sales  to  evade  tax;  forfeiture. 

3455.  Disposing  of  or  receiving  or  making 

empty  stamped  packages;  penal- 
ties. 
Penalty  and  forfeiture  by  distillers, 
etc.,  for  omitting  things  required 
and  for  doing  things  forbidden. 


3448. 


3449. 


3450. 


3452. 


3453. 


3456. 


Sec. 
3457. 


Packages  included  in  forfeiture  of 


goods. 
3458.  Goods  seized  may  be  delivered  to 
marshal  before  process  issues,  etc. 


3459. 
3460. 


Bonding  of  goods  seized. 


of 


goods 


Proceedings    on   seizure 
valued  at  $500  or  less. 

3461.  Application  for  remission. 

3462.  Search  warrants. 

3463  and  [3463a].  Informers'  rewards. 

Appropriation  for  detecting  frauds. 

3464.  Purchasing    for    the    Government 

goods  subject  to  tax. 

3465.  Construction  of  act  March  2,  1833. 

Act  of  August  13, 1894,  amended.  Guar- 
antee corporation  may  be  ac- 
cepted as  sole  surety  on  recogni- 
zances, stipulations,  bonds,  and 
undertakings. 

Section  5  of  the  legislative,  executive,  and 
judicial  appropriation  act  of 
March  2,  1895.  Relative  to  offi- 
cial bonds. 

Act  of  Augusts,  1888.  Notice  of  deficiency 
in  accounts  of  principals  to  be 
given  to  sureties  upon  bonds  of 
United  States  officials.  Limita- 
tion of  time  within  which  suits 
shall  be  brought  against  sureties. 

Section  31,  act  of  June  13,  1898.  Former 
laws  made  applicable. 

Legislation  relative  to  Hawaii,  Porto  Rico, 
and  the  Philippines. 


Sec.  3441.  Relative  to  drawback  on  fermented  liquors; 
repealed  by  act  of  June  18,  1890  (26  Stat.,  162).  See 
page  255. 

Sec.  3442.  Obsolete  by  repeal  of  section  3441. 

Sec.  3443.  Whenever  any  person  fraudulently  claims  or    Fraudulent 

i.-i,.  ii  ci  ii  i  claims  for  draw- 

seeks  to  obtain  an  allowance  or  drawback  on  goods,  wares,  back;  penalty. 
or  merchandise  on  which  no  internal  duty  shall  have  been 
paid,  or  fraudulently  claims  any  greater  allowance  of  draw- 
back than  the  tax  actually  paid  as  aforesaid,  he  shall  for- 
feit triple  the  amount  wrongfully  or  fraudulently  claimed 
72170°— 11 23  353 


354       PROVISIONS   COMMON   TO    SEVERAL   OBJECTS   OF   TAXATION. 

or  sought  to  be  obtained,  or  the  sum  of  five  hundred  dol- 
lars, at  the  election  of  the  Secretary  of  the  Treasury. 

Section  3330,  page  220,  provides  a  penalty  in  the  case  of  fraudu- 
lent claims  for  drawback  on  spirits,  and  section  25,  act  of  Febru- 
ary 8,  1875  (sec.  [3386a],  p.  277),  in  the  case  of  fraudulent 
claims  for  drawback  on  tobacco. 

Drawback  is  now  allowed  on  distilled  spirits,  tobacco,  snuff, 
cigars,  cigarettes,  and  stills. 

No  drawback  is  allowed  upon  spirits  bottled  in  bond,  page  237. 

Drawback  allowed  on  articles  shipped  to  the  Philippines. 
(Act  of  Mar.  8,  1902,  p.  375.) 

Drawback  on  stills,  page  134. 

Drawback  on  medicinal  and  toilet  preparations  manufactured 
from  tax-paid  alcohol,  page  337. 

collector's  Sec.  3444.  Every  collector  who  has  charge  of  any  ware- 
S°arhtYefeCs°Uinn  house  in  which  distilled  spirits,  or  other  articles,  are  stored 
houses  eandwartl-m  bond,  shall  render  a  monthly  account  of  all  such  articles 
cies  exported,  to  the  Commissioner  of  Internal  Revenue,  by  whom  such 
account  shall  be  examined  and  adjusted  monthly,  so  as  to 
exhibit  a  true  statement  of  the  responsibility  of  such  col- 
lector thereon.  In  adjusting  such  account,  the  collector 
shall  be  charged  with  all  the  articles  which  may  have 
been  deposited  or  received  under  the  provisions  of  law,  in 
any  warehouse  in  his  district  and  under  his  control,  and 
shall  be  credited  with  all  such  articles  shown  to  have  been 
removed  therefrom  according  to  law,  including  transfers 
to  other  collectors  and  to  his  successor  in  office,  and  also 
whatever  allowances  may  have  been  made  in  accordance 
with  law  to  any  owner  of  such  goods  or  articles  for  leakage 
or  other  losses. 

And  every  collector  from  whose  district  any  distilled 
spirits,  tobacco,  snuff,  or  cigars  are  shipped  in  bond,  under 
the  provisions  of  this  Title,  shall  render  a  monthly  account 
of  the  same  to  the  Commissioner  of  Internal  Revenue, 
snowing  the  amount  of  each  article  produced  and  shipped 
in  bond,  the  amounts  of  which  the  exportation  is  com- 
pleted according  to  law,  and  the  amount  remaining  unac- 
counted for  at  the  end  of  each  month;  also  any  excesses 
or  deficiencies  on  the  amounts  originally  reported  as 
shipped. 
changes  of  Sec.  3445.  The  Commissioner  of  Internal  Revenue  may 
mentffor  attach-  make  such  change  in  stamps,  and  may  prescribe  such  in- 
and  caSceiTng!ng'  struments  or  other  means  for  attaching,  protecting,  and 
canceling  stamps,  for  tobacco,  snuff,  cigars,  distilled 
spirits,  and  fermented  liquors,  or  either  of  them,  as  he  and 
the  Secretary  of  the  Treasury  shall  approve ;  such  instru- 
ments to  be  furnished  by  the  United  States  to  the  person 
using  the  stamps  to  be  affixed  therewith,  under  such 
regulations  as  the  Commissioner  of  Internal  Revenue  may 
prescribe. 

Regulations  under  this  section  have  the  force  of  law.  (15  Op. 
Atty.  Gen.,  191.) 

Rubber  stamps  may  be  used  instead  of  stencils  for  canceling 
strip  stamps  on  cigar  boxes.  (Circular  letter,  Oct.  15,  1897;  43 
Int.  Rev.  Rec,  385.) 


PROVISIONS   COMMON    TO  SEVERAL.  OBJECTS   OF    TAXATION.       355 


es- 
or 


Pena'ties. 


Expense. 


Sec.  3446  [as  amended  by  sec.  18,  act  of  Mar.  1,1879  (20  ta^er al£r 
Stat.,  327)].  The  Commissioner  of  Internal  Revenue,  change' internal' 
with  the  approval  of  the  Secretary  of  the  Treasury,  may  martc^o/ labels) 
establish  and,  from  time  to  time,  alter  or  change  the  form, ete- 
style,  character,  material,  and  device  of  any  stamp,  mark, 
or  label  used  under  any  provision  of  the  laws  relating  to 
internal  revenue.  Such  stamps  shall  be  attached,  pro- 
tected, removed,  canceled,  obliterated,  and  destroyed,  in 
such  manner  and  by  such  instruments  or  other  means  as 
he,  with  the  approval  of  the  Secretary  of  the  Treasury, 
may  prescribe;  and  he  is  hereby  authorized  and  empow- 
ered to  make,  with  the  approval  of  the  Secretary  of  the 
Treasury,  all  needful  regulations  relating  thereto;  and 
all  pains,  penalties,  fines,  and  forfeitures  now  provided  by 
law  relating  to  internal-revenue  stamps  shall  apply  to  and 
have  full  force  and  effect  in  relation  to  any  and  all  stamps 
which  may  or  shall  be  so  established  by  the  Commissioner 
of  Internal  Revenue: 

Provided,  Such  stamps  or  device  or  instrument  or 
means  of  removal  or  obliteration,  shall  entail  no  addi- 
tional expense  upon  the  persons  required  to  affix  or  use 
the  same. 

See  section  321,  page  45,  as  to  authority  of  commissioner  to  pro- 
vide stamps,  etc. 

Stamps  for  special  taxes,  section  3238,  page  128;  for  distilled 
spirits,  section  3312,  page  207;  for  imitation  wines,  section  3328, 
page  217 ;  for  fermented  liquors,  section  3341,  page  249;  for  tobacco, 
section  3369,  page  267;  for  cigars,  section  3395,  page  285;  for  oleo- 
margarine, section  8,  act  of  August  2,  1886,  amended,  page  295. 
See  appropriate  sections  for  other  articles. 

The  portraits  of  living  persons  upon  internal-revenue  stamps 
not  prohibited  by  section  3576,  R.  S.,  but  their  exclusion  there- 
from is  in  consonance  with  its  spirit.     (14  Op.  Atty.  Gen.,  528.) 

Hamilton-Brooks  cigar  stamp.  (16  Op.  Atty.  Gen.,  444;  26  Int. 
Rev.  Rec,  33;  17  Op.  Atty.  Gen.,  111.) 

Use  of  the  Hunter  stamp.     (15  Op.  Atty.  Gen.,  191.) 

Fletcher's  invention.     (11  Ct,  Cls.,  748.) 

Alleged  infringement  of  patent.  (Fletcher  v.  Blake,  131  U.  S., 
cxcvii  appendix;  27  Int.  Rev.  Rec,  6.  Hollister  v.  Benedict  & 
Burnham  Manufacturing  Co.,  113  U.  S.,59;  31  Int.  Rev.  Rec,  30. 
Solomons  v.  United  States,  22  Ct.  Cls.,  335.) 

Stamps  for  spirits,  beer,  tobacco,  snuff,  and  cigars  are  not 
legitimate  articles  of  traffic.  (11  Int.  Rev.  Rec,  57;  Amer. 
Brewing  Co.  v.  U.  S.,  33  Ct.  Cls.,  351.) 

[Sec.  3446a.]  [Extract  from  legislative,  executive,  and  ju-    stamps  to  be 
dicial   appropriation    act   approved    Aug.   15,    1876    (1.9  mail,  registered. 
Stat.,  152).]     *     *     *     And  hereafter  the  transmission  of 
internal  revenue  stamps  to  the  officers  of  the  internal 
revenue  service  shall  be  made  through  the  mails  of  the 
United  States  in  registered  packages.     *     *     * 

Internal-revenue  stamps  may  be  mailed  to  collectors  and  stamp 
deputy  collectors  or  returned  by  them  to  the  commissioner  in 
full  packages  without  regard  to  the  4-pound  limit  of  weight. 
(T.  D.  18947,  1898.) 

Sec  3447.  Whenever  the  mode  or  time  of  assessing  or  ^kf™  ™d«0°_f 
collecting  any  tax  which  is  imposed  is  not  provided  for,  lecting  any  tax  is 
the  Commissioner  of  Internal  Revenue  may  establish  the  re^Ettonsf1  for; 


356       PROVISIONS    COMMON   TO   SEVERAL   OBJECTS  OF   TAXATION. 

same  by  regulation.  He  may  also  make  all  such  regula- 
tions, not  otherwise  provided  for,  as  may  have  become 
necessary  by  reason  of  any  alteration  of  law  in  relation  to 
internal  revenue. 

Spreckels  S.  R.  Co.  v.  McClain  (113  Fed.  Rep.,  244;  T.  D.  462; 
109  Fed.  Rep.,  76;  T.  D.  350). 

nu^Taws  "when     Sec.  3448.  The  internal-revenue  laws  imposing  taxes  on 

coextensive  with  distilled  spirits,  fermented  liquors,   tobacco,  snuff,   and 

united  states.  °  cigars  shall  be  held  to  extend  to  such  articles  produced 

anywhere  within  the  exterior  boundaries  of  the  United 

States,  whether  the  same  be  within  a  collection-district  or 

not. 

Indian  Territory:  The  Cherokee  Tobacco  (Boudinot's  factory) 
(11  Wall.,  616;  14  Int.  Rev.  Rec,  11). 

In  this  case  the  Supreme  Court  ruled  that  the  Indian  Territory 
was  included  in  the  general  terms  of  this  section,  notwithstand- 
ing any  prior  treaty,  and  that  the  provisions  of  the  internal-reve- 
nue law  as  to  distilled  spirits,  fermented  liquors,  and  tobacco 
were  applicable  therein. 

Liquor  dealers  in  Indian  Territory.  (22  Int.  Rev.  Rec,  109; 
23  ibid.,  125.  United  States  v.  Forty-three  Gallons  of  Whisky; 
108  U.  S.,  491;  29  Int.  Rev.  Rec,  188.) 

Special-tax  stamps,  being  only  receipts  for  taxes  paid,  may  be 
issued  by  the  collector  of  internal  revenue,  notwithstanding  acts 
of  Congress  relative  to  sale  of  liquors  in  the  Indian  Territory. 
(T.  D.  18911,  1898.) 

Section  2141,  Revised  Statutes,  provides  as  follows:  Every  per- 
son who  shall,  within  the  Indian  country,  set  up  or  continue  any 
distillery  for  manufacturing  ardent  spirits  shall  be  liable  to  a 
penalty  of  one  thousand  dollars;  and  the  superintendent  of 
Indian  affairs,  Indian  agent,  or  subagent,  within  the  limit  of 
whose  agency  any  distillery  of  ardent  spirits  is  set  up  or  con- 
tinued, shall  forthwith  destroy  and  break  up  the  same. 

The  Attorney  General,  in  an  opinion  rendered  October  4,  1898, 
held  that  the  establishment  of  a  distillery  in  the  Indian  Terri- 
tory, notwithstanding  it  was  on  land  to  which  the  Indian  title 
was  extinct,  would  be  in  contravention  of  law.  (T.  D.  20162, 
1898;  22  Op.  Atty.  Gen.,  232.) 

Oklahoma  and  Indian  Territory  to  form  a  State  government. 
Act  June  16,  1906.  (34  Stat.,  267.)  Oklahoma  admitted  as  a 
State  November  16,  1907.     (35  Stat.,  2161.) 

Alaska  added  to  Oregon  district  December  27,  1872. 

Alaska,  case  of  Savaloff  (17  Int.  Rev.  Rec,  20);  case  of  Ste- 
phens (  28  ibid.,  194). 

The  payment  of  the  special  tax  is  no  defense  to  a  prosecution 
for  illegally  selling  liquors  in  Alaska.  (United  States  v.  Ash,  75 
Fed.  Rep.,  651;  Endleman  v.  United  States,  86  Fed.  Rep.,  456.) 

An  act  to  define  and  punish  crimes  in  the  District  of  Alaska 
and  to  provide  a  code  of  criminal  procedure  for  said  distrio',. 
(Act  of  March  3,  1899,  30  Stat.,  1253.) 

Section  477  provides:  "That  nothing  in  this  act  shall  in  any 
way  repeal,  conflict,  or  interfere  with  the  public  general  laws 
of  the  United  States  imposing  taxes  on  the  manufacture  and  sale 
of  intoxicating  liquors  for  the  purpose  of  revenue  and  known  as 
the  'internal-revenue  laws. '" 

The  act  of  June  6,  1900,  (31  Stat.,  321),  makes  further  provision 
for  civil  government  in  Alaska. 

Philippine  Islands  (24  Op.  Atty.  Gen.,  120).     See  p.  375. 

Removing  any     gEC   3449.  Whenever  any  person  ships,  transports,  or 

liquors   or   wines  ...  J  p  r  .      ■,     -f.    '  r         .' 

under  other  than  removes   any   spintous  or  fermented   liquors   or  wines, 

penalty. names;  under  any  other  than  the  proper  name  or  brand  known  to 

the  trade  as  designating  the  kind  and  quality  of  the  con- 


PROVISIONS    COMMON    TO   SEVERAL.   OBJECTS    OF    TAXATION.       357 

tents  of  the  casks  or  packages  containing  the  same,  or 
causes  such  act  to  be  done,  he  shall  forfeit  said  liquors  or 
wines,  and  casks  or  packages,  and  be  subject  to  pay  a  fine 
of  five  hundred  dollars. 

Construction  of  this  section  in  case  of  shipment  of  spirits  under 
a  false  desgination.  (Attorney  General  Taft's  letter  to  Secretary 
of  the  Treasury;  22  Int.  Rev.  Rec,  261.) 

Section  3449  was  passed  to  prevent  frauds  on  the  revenue  and 
to  assist  revenue  officers  in  discovering  such  frauds.  It  has  no 
reference  to  marks  or  brands  placed  upon  packages  by  Govern- 
ment officers.  (Woolner  &  Co.  v.  Rennick,  (1908),  170  Fed.  Rep., 
662;  T.  D.  1425.) 

When  spirituous  liquors  contained  in  bottles  are  packed  in 
barrels  and  shipped  and  the  barrels  are  marked  ' '  groceries, ' '  such 
shipment  is  a  violation  of  this  section.  (United  States  v.  Liquor 
Dealers'  Supply  Co.,  156  Fed.  Rep.,  219;  T.  D.  1292.) 

When  spirituous  liquors  contained  in  bottles  are  packed  in  bar- 
rels and  shipped,  and  the  barrels  are  not  marked,  but  described 
in  bill  of  lading  as  "drugs,"  such  shipment  is  a  violation  of  sec- 
tion 3449.  The  matter  of  intent  is  immaterial.  (Charge  to  the 
jury  in  United  States  v.  Robert  Stevenson  &  Co.;  T.  D.  1644.) 

The  requirements  of  this  statute  can  not  be  limited  to  distil- 
lers, manufacturers,  and  rectifiers,  as  its  language  covers  all 
persons  who  ship,  transport,  or  remove  liquors  or  wines.  (United 
States  v.  Camp  et  al.,  Northern  District  of  California  (1898),  89 
Fed.  Rep.,  697.)  See  133  Fed.  Rep.  910  (T.  D.  844)  for  later 
decision  of  Cir.  Ct.  of  appeals. 

Section  3449  not  unconstitutional  because  in  some  cases  it 
incidentally  acts  as  a  protection  to  trade-marks.  (United  States 
v.  Loeb  (1892),  49  Fed.  Rep.,  636;  38  Int.  Rev.  Rec,  78.) 

The  term  "package,"  as  used  in  section  3449,  includes  every 
box,  barrel,  or  other  receptacle  into  which  distilled  spirits  have 
been  placed  for  shipment  or  removal,  either  in  quantity  or  in 
separate  small  packages,  as  bottles  or  jugs.  (United  States  v. 
132  Packages  of  Spirituous  Liquors  and  Wines  et  al.  (1896),  circuit 
court  of  appeals,  76  Fed.  Rep.,  364;  42  Int.  Rev.  Rec,  438.) 

Packages  of  less  than  5  gallons  marked  "Glass,  this  side  up 
with  care."  Section  3449  does  not  apply.  (United  Suites  v. 
Twentv  Boxes  of  Corn  Liquor,  123  Fed.  Rep.,  135;  133  ibid.,  910; 
T.  D.  844.) 

"J.  D.  Iter's  Rochester  Tonic"  (United  States  v.  J.  D.  Iter 
Brewing  Co.,  121  Fed.  Rep.,  41;  T.  D.  630.) 

Shipping  liquors  under  other  than  name  as  known  to  the 
trade.     (T.  D.  956;  T.  D.  1035.) 

United  States  v.  Sandefuhr  (145  Fed.  Rep.,  49). 

See  provisions  of  the  criminal  code  as  to  marking  spirits.  Ap- 
pendix, p.  421. 

Sec.  3450.  Whenever  any  goods  or  commodities  for  or    Removing    or 

,  „  A         •  l     n  i_      •  i  concealing     arti- 

m  respect  whereof  any  tax  is  or  shall  be  imposed,  or  anycies  with  intent 
materials,  utensils,  or  vessels  proper  or  intended  to  be  states  of<taxmted 
made  use  of  for  or  in  the  making  of  such  goods  or  com- 
modities are  removed,  or  are  deposited  or  concealed  in  any 
place,  with  intent  to  defraud  the  United  States  of  such  tax, 
or  any  part  thereof,  all  such  goods  and  commodities,  and 
all  such  materials,  utensils,  and  vessels,  respectively,  shall 
be  forfeited;  and  in  every  such  case  all  the  casks,  vessels, 
cases,  or  other  packages  whatsoever,  containing,  or  which 
shall  have  contained,  such  goods  or  commodities,  respec- 
tively, and  every  vessel,  boat,  cart,  carriage,  or  other  con- 
veyance whatsoever,  and  all  horses  or  other  animals,  and 
all  things  used  in  the  removal  or  for  the  deposit  or  conceal- 
ment thereof,  respectively,  shall  be  forfeited. 


358       PROVISIONS   COMMON   TO    SEVERAL   OBJECTS   OF   TAXATION. 

forfeiture! *  y  and .  J^J1(^  every  person  who  removes,  deposits,  or  conceals,  or 
is  concerned  in  removing,  depositing,  or  concealing  any 
goods  or  commodities  for  or  in  respect  whereof  any  tax  is 
or  shall  be  imposed,  with  intent  to  defraud  the  United 
States  of  such  tax  or  any  part  thereof,  shall  be  liable  to  a 
fine  or  penalty  of  not  more  than  five  hundred  dollars. 
And  all  boilers,  stills,  or  other  vessels,  tools  and  imple- 
ments, used  in  distilling  or  rectifying,  and  forfeited  under 
any  of  the  provisions  of  this  Title,  and  all  condemned  ma- 
terial, together  with  any  engine  or  other  machinery  con- 
nected therewith,  and  all  empty  barrels,  and  all  grain  or 
other  material  suitable  for  distillation,  shall,  under  the 
direction  of  the  court  in  which  the  forfeiture  is  recovered, 
be  sold  at  public  auction,  and  the  proceeds  thereof,  after 
deducting  the  expenses  of  sale,  shall  be  disposed  of  accord- 
ing to  law. 
ed?  how  disponed  .A*10*  an  spirits  or  spirituous  liquors  which  may  be  for- 
of-  feited  under  the  provisions  of  this  Title,  unless  herein 

otherwise  provided,  shall  be  disposed  of  by  the  Commis- 
sioner of  Internal  Revenue  as  the  Secretary  of  the  Treas- 
ury may  direct. 

An  unofficial  person  may  seize  property  as  forfeited  to  the 
United  States,  and  the  Government,  if  it  chooses,  may  adopt  the 
seizure  and  make  it  the  basis  of  legal  proceedings. 

A  proceeding  by  the  Government  to  enforce  the  forfeiture  by 
legal  process  is  a  confirmation  of  the  seizure.  (13  Op.  Atty .  Gen  , 
253,  256;  The  Caledonian,  4  Wheat.,  99,  102;  Gelston  v.  Hoyt,  16 
Wheat.,  245,  310;  Taylor  v.  United  States,  3  How.,  197,  204.) 

Circular  No.  224,  relative  to  destruction  of  spirits.  (26  Int. 
Rev.  Rec,  105.) 

Rights  of  mortgagee.  (United  States  v.  Two  Barrels  Whisky 
(1899,  CCA.)  96  Fed.  Rep.,  479;  United  States  v.  One  Bay 
Horse,  etc.,  128  ibid.,  207.) 

In  statutory  offenses  a  guilty  intent  is  not  necessarily  an  in- 
gredient. (United  States  v.  One  Black  Horse,  129  Fed.  Rep., 
167.) 

The  illegal  acts  of  agents  or  employees  work  forfeiture  of  prop- 
erty. (Bush?;.  U.S.,  24  Fed.  Rep..  917;  31  Int.  Rev.  Rec,  305; 
U.  S.  v.  Stowell,  133  U.  S.,  1;  36  Int.  Rev.  Rec,  30;  U.  S.  v.  7 
Barrels  Distilled  Oil,  6  Blatch.,  174;  Fed.  Cas.  No.  16253.) 

In  Pilcher  v.  Faircloth  (135  Ala.,  311),  action  to  recover  for 
the  conversion  of  two  mules  seized  and  sold  by  the  collector,  the 
supreme  court  of  Alabama  held  that  the  forfeiture  took  effect 
immediately  upon  the  commission  of  the  act,  and  the  defendant 
by  purchase  at  the  collector's  sale  acquired  title. 

Mules  and  a  wagon,  hired  for  the  purpose  of  hauling  produce 
to  market,  are  forfeited  when  employed  by  the  bailee  in  the 
removal  of  spirits  in  violation  of  law,  although  the  owner  had 
no  information  that  his  property  would  be  employed  in  an  un- 
lawful purpose.  (United  States  v.  Two  Bay  Mules,  36  Fed. 
Rep.,  84.) 
See  notes  under  sec.  3453. 

exmni"gdUdS  Sec-  345L  EveiT  person  who  simulates  or  falsely  or 
ments  required  fraudulently  executes  or  signs  any  bond,  permit,  entry, 
nuelnia4"f"pen-or  other  document  required  by  the  provisions  of  the  in- 
alty-  ternal-revenue  laws,  or  by  any  regulation  made  in  pursu- 

ance thereof,  or  who  procures  the  same  to  be  falsely  or 
fraudulently  executed,  or  who  advises,  aids  in,  or  con- 
nives at  such  execution  thereof,  shall  be  imprisoned  for  a 


PROVISIONS   COMMON    TO   SEVERAL,   OBJECTS    OF    TAXATION.       359 

term-not  less  than  one  year  nor  more  than  five  years;  and 
the  property  to  which  such  false  or  fraudulent  instrument 
relates  shall  be  forfeited. 

See  section  28,  act  March  4,  1909  (Criminal  Code),  p.  420,  in 
appendix,  penalties  for  forging,  altering,  counterfeiting  affidavits, 
bonds,  public  records,  etc. 

Fraudulent  Form  122  forfeits  spirits  to  which  it  relates. 
(Thacher,  claimant  of  102  packages  of  distilled  spirits,  v.  The 
United  States,  103  U.  S.  (13  Otto),  679,  affirming  15  Blatch.,  15; 
27  Int.  Rev.  Rec,  144.) 

Sec.  3452.  Every  person  who  shall  have  in  his  custodv    Having  proper- 

1    i  i  v  ,  •    i  ty   in   pocsession 

or  possession  any  goods,  wares,  merchandise,  articles,  or  with   intent   to 
objects  on  which  taxes  are  imposed  by  law,  for  the  purpose  j|"  j°r  {0aeVadi 
of  selling  the  same  in  fraud  of  the  internal-revenue  laws,  taxes;  penalty. 
or  with  design  to  avoid  payment  of  the  taxes  imposed 
thereon,  shall  be  liable  to  a  penalty  of  five  hundred  dollars 
or  not  less  than  double  the  amount  of  taxes  fraudulently 
attempted  to  be  evaded. 

U.  S.  v.  Grotenkemper  (2  Bond,  140,  26  Fed.  Cas.,  45.) 

wSec.  3453.  All  goods,  wares,  merchandise,  articles,  or  Seizure  of 
objects,  on  which  taxes  are  imposed,  which  shall  be  found  in  possession  in 
in  the  possession,  or  custody,  or  within  the  control  of  any{""<?  forfeitures! 
person,  for  the  purpose  of  being  sold  or  removed  by  him 
in  fraud  of  the  internal-revenue  laws,  or  with  design  to 
avoid  payment  of  said  taxes,  may  be  seized  by  the  col- 
lector or  deputy  collector  of  the  proper  district,  or  by  such 
other  collector  or  deputy  collector  as  may  be  specially 
authorized  by  the  Commissioner  of  Internal  Revenue  for 
that  purpose,  and  shall  be  forfeited  to  the  United  States. 
And  all  raw  materials  found  in  the  possession  of  any 
person  intending  to  manufacture  the  same  into  articles 
of  a  kind  subject  to  tax  for  the  purpose  of  fraudulently 
selling  such  manufactured  articles,  or  with  design  to  evade 
the  payment  of  said  tax;  and  all  tools,  implements, 
instruments,  and  personal  property  whatsoever,  in  the 
place  or  building,  or  within  any  yard  or  inclosure  where 
such  articles  or  raw  materials  are  found,  may  also  be 
seized  by  any  collector  or  deputy  collector,  as  aforesaid, 
and  shall  be  forfeited  as  aforesaid.  The  proceedings  to 
enforce  such  forfeitures  shall  be  in  the  nature  of  a  pro- 
ceeding in  rem  in  the  circuit  court  or  district  court  of  the 
United  States  for  the  district  where  such  seizure  is  made. 

Personal  property  in  the  same  inclosure  with  an  illicit  still. 
(United  States  v.  Quantity  of  Rags,  7  Int.  Rev.  Rec,  123;  27 
Fed.  Cas.,  16103.) 

Property  liable  to  forfeiture  without  any  regard  to  the  mis- 
conduct of  owner.  (United  States  v.  Distillery  at  Spring  Valley, 
11  Blatch.,  255;  25  Fed.  Cas.,  854;  18  Int.  Rev.  Rec,  59,  and 
decisions  cited  under  sec.  3281,  p.  173.) 

Mixture  or  confusion  of  fraud  spirits  with  others.  (The  Dis- 
tilled Spirits  (Harrington's),  11  Wall.,  356;  13  Int.  Rey.  Rec, 
193;  10  ibid.,  164.  United  States  v.  One  Still,  5  Blatch.,  403; 
5  Int.  Rev.  Rec,  189.) 

An  acquittal  in  a  criminal  prosecution  is  a  bar  to  a  proceeding 
in  rem  when  the  offense  is  the  same.  (Coffee  v.  United  States, 
116  U.  S.,  436;  32  Int.  Rev.  Rec,  38.) 


360       PROVISIONS   COMMON   TO    SEVERAL   OBJECTS   OF    TAXATION. 

The  United  States  is  not  estopped  by  verdict  of  acquittal  from 
proceeding  in  a  civil  action  for  the  tax.  (United  States  v. 
Schneider,  35  Fed.  Rep.,  107.) 

Acquittal  bar  to  civil  action  for  penalty.  (United  States  v. 
Seattle  Brewing  &  Malting  Co.,  135  Fed.  Rep.,  597.) 

Oleomargarine.  (United  States  v.  One  Bay  Horse,  128  Fed. 
Rep.,  207.) 

Burden  of  proof:  There  is  a  distinction  between  civil  and 
criminal  cases  in  respect  to  the  degree  or  quantum  of  evidence 
necessary  to  justify  the  jury  in  finding  their  verdict.  In  civil 
cases  their  duty  is  to  find  for  the  party  in  whose  favor  it  pre- 
ponderates. Innocence  is  presumed  in  a  criminal  case  until  the 
contrary  is  proven;  but  the  presumption  of  innocence  as  pro- 
bative evidence  is  not  applicable  in  civil  cases  nor  in  revenue 
seizures.  (Lilienthal's  Tobacco  v.  United  States,  97  U.  S.,  237; 
24  Int.  Rev.  Rec,  60.) 

Proceedings  for  forfeiture  are  civil,  not  criminal  proceedings. 
(United  States  v.  Three  Tons  of  Coal,  21  Int.  Rev.  Rec,  251.) 

The  expression  "in  fraud  of  the  internal-revenue  laws"  means 
in  violation  of  the  internal-revenue  laws.  (A  Quantity  of  To- 
bacco and  Cigars,  5  Ben.,  407,  Fed.  Cas.  No.  11500.) 

Reports  of  seizure  on  Form  117  to  be  made  prompt lv.  (T 
D.  147.) 

Seizures  not  to  be  made  on  suspicion  (T.  D.  1543). 

Notice  to  shippers  (T.  D.  585). 

sales  to  evade     Sec.  3454.  Whenever  any  person  who  is  liable  to  pay 
tax,  forfeiture.     an^T  ^.^  Up0n  any  g00(jSj  wares,  or  merchandise,  sells  or 

causes  or  allows  the  same  to  be  sold  before  the  tax  is  paid 
to  which  said  property  is  liable,  with  intent  to  avoid  such 
tax,  or  in  fraud  of  the  internal-revenue  laws,  any  debt 
contracted  in  such  sales,  and  any  security  given  therefor, 
unless  the  same  shall  have  been  bona  fide  transferred  to 
an   innocent  holder,   shall  be   void,    and   the   collection 

Moiety.  thereof  shall  not  be  enforced  in  any  court.     And  if  such 

goods,  wares,  or  merchandise  have  been  paid  for,  in  whole 
or  in  part,  the  sum  so  paid  shall  be  deemed  forfeited,  and 
an}'  person  who  shall  sue  for  the  same  in  an  action  of  debt 
shall  recover  from  the  seller  the  amount  so  paid,  one-half 
to  his  own  use  and  the  other  half  to  the  use  of  the  United 
States. 

Disposing  of  or     Sec.  3455.  Whenever  any  person  sells,  gives,  purchases, 

receiving    emptv  •  i  i  ii1  i  i  r 

stamped  pac k~- or  receives  any  box,  barrel,  bag,  vessel,  package,  wrapper, 
fe5'  etc:  penal  cover,  or  envelope  of  any  kind,  stamped,  branded,  or 
marked  in  any  way  so  as  to  show  that  the  contents  or 
intended  contents  thereof  have  been  duly  inspected,  or 
that  the  tax  thereon  has  been  paid,  or  that  any  provision 
of  the  internal-revenue  laws  has  been  complied  with, 
whether  such  stamping,  branding,  or  marking  may  have 
been  a  duly  authorized  act  or  may  be  false  and  counter- 
feit, or  otherwise  without  authority  of  law,  said  box,  bar- 
rel, bag,  vessel,  package,  wrapper,  cover,  or  envelope  being 
empty,  or  containing  anything  else  than  the  contents 
which  were  therein  when  said  articles  had  been  so  lawfully 
stamped,  branded,  or  marked  by  an  officer  of  the  revenue, 
he  shall  be  liable  to  a  penalty  of  not  less  than  fifty  nor 
Manufacturing,  more  than  five  hundred  dollars.     And  everv  person  who 

etc.,    such    pack-  i  £       ,  -,  iiii 

ages.  makes,  manufactures,  or  produces  any  box,  barrel,  bag, 

vessel,  package,  wrapper,  cover,  or  envelope,  stamped, 
branded,    or   marked,    as   above   described,   or  stamps, 


PROVISIONS   COMMON    TO   SEVERAL  OBJECTS    OF    TAXATION.       361 

brands,  or  marks  the  same,  as  hereinbefore  recited,  shall 

be  liable  to  penalty  as  before  provided  in  this  section. 

And  every  person  who  violates  the  foregoing  provisions  of 

this  section,  with  intent  to  defraud  the  revenue,  or  to 

defraud  any  person,  shall  be  liable  to  a  fine  of  not  less 

than  one  thousand  nor  more  than  five  thousand  dollars,  or 

to  imprisonment  for  not  less  than  six  months  nor  more 

than  five  years,  or  to  both,  at  the  discretion  of  the  court. 

And  all  articles  sold,  given,  purchased,  received,  made, 

manufactured,  produced,  branded,  stamped,  or  marked 

in  violation  of  the  provisions  of  this  section,  and  all  their    verbal  error 

contents,  shall  be  forfeited  to  the  United  States.  corrected. 

A  person  can  not  buy  a  package  containing  distilled  spirits, 
already  stamped  and  branded,  and  take  out  the  contents  and 
put  in  other  distilled  spirits  of  a  lower  proof,  without  rendering 
the  property  subject  to  forfeiture.  (United  States  v.  Nine  Casks 
and    Packages  of  Distilled  Spirits,  51  Fed.  Rep.,  191.) 

Empty  cigar  boxes.     (T.  D.  873.) 

The  phrase  ''anything  else"  in  section  3455  does  not  include 
substances  that  are  not  in  themselves  taxable.  (U.  S.  v.  A.  Graf 
Distilling  Co.,  208  U.  S.,  198;  T.  D.  1304.)  For  decisions  in 
lower  courts  see  129  Fed.  Rep.,  329  and  125  Fed.  Rep.,  52,  T.  D. 
701. 

Proceedings  for  forfeiture — evidence.  Corbin  &  Co.  v.  United 
States.     (181  Fed.  Rep.,  296.) 

Sec  3456.  If  any  distiller,  rectifier,  wholesale  liquor- sJie f  °ral *J  *g 
dealer,  or  manufacturer  of  tobacco  or  cigars,  shall  know- tmers,  rectifiers, 
ingly  or  willfully  omit,  neglect,  or  refuse  to  do  or  cause  to deaterf and'man- 
be  clone  any  of  the  things  required  by  law  in  the  carrying  l^toers  °/  l°r 

i         i  •  c  i    •      i  •  i       ii     i  ii   •  -i        ojcco    or    cigars, 

on  or  conducting  of  his  business,  or  shall  do  anything  by  for  omitting 

this  Title  prohibited,  if  there  be  no  specific  penalty  orand8Sforeqdoing 

punishment  imposed  by  any  other  section  of  this  Title  forthings  forbidden- 

the  neglecting,  omitting  or  refusing  to  do,  or  for  the  doing 

or  causing  to  be  done  the  thing  required  or  prohibited,  he 

shall  pay  a  penalty  of  one  thousand  dollars;  and  if  the  ]s:\,ct    ntP'sfart' 

person  so  offending  be  a  distiller,  rectifier,  or  wholesale  240.) 

liquor  dealer,  all  distilled  spirits  or  liquors  owned  by  himco^|cted. error 

or  in  which  he  has  any  interest  as  owner,  and  if  he  be  a 

manufacturer  of  tobacco  or  cigars,  all  tobacco  or  cigars 

found  in  his  manufactory  shall  be  forfeited  to  the  United 

States. 

United  States  v.  Two  hundred  Barrels  Whisky  (95  U.  S.,  571; 
24  Int.  Rev.  Rec,  3).  United  States  v.  One  hundred  and  thirty- 
three  Casks  of  Distilled  Spirits  (11  Int.  Rev.  Rec,  191).  United 
States  v.  One  thousand  four  hundred  and  twelve  Gallons  Dis- 
tilled Spirits  (10  Blatch.,  428;  17  Int.  Rev.  Rec,  86).  United 
States  v.  One  Rectifying  Establishment  (11  Int.  Rev.  Rec,  45; 
Fed.  Cas.  No.  15952). 

This  section  was  not  intended  to  cumulate  or  increase  punish- 
ment. (United  States  v.  Four  thousand  eight  hundred  Gallons 
of  Spirits,  13  Int.  Rev.  Rec,  52.) 

Intent.  (Felton  v.  United  States,  96  U.  S.,  699;  24  Int.  Rev. 
Rec,  252.) 

Meaning  of  the  words  "  knowingly  and  willfully. "  (A  Quantity 
of  Distilled  Spirits,  etc.,  3  Ben.  552,  Fed.  Cas.  No.  11495;  10  Int. 
Rev.  Rec,  206;  11  ibid.,  3.) 


362       PKOVISIONS   COMMON    TO    SEVERAL   OBJECTS   OF   TAXATION. 

Package  in-      gEC  3457.  In  every  case  where  any  goods  or  commodi- 

cluded  in  forfeit-    .  /.<.-,!  1  •  1  l  11  U 

ure  of  goods.        ties  are  forfeited  under  any  internal-revenue  law,  all  casks, 

vessels,  cases,  or  other  packages  whatsoever,  containing, 

or  which  shall  have  contained  such  goods  or  commodities, 

respectively,  shall  be  forfeited. 

Goods  seized      Sec.  3458.  Any  goods,  wares,  merchandise,  articles,  or 

™mabrIhtfbeefoere  objects  which  may  be  seized,  under  the  provisions  of  sec- 

process  issues.      tjon  thirty-four  hundred  and  fif ty-three,  by  any  collector 

or  deputy  collector,  may,  at  the  option  of  the  collector,  be 

delivered  to  the  marshal  of  the  district,  and  remain  in  the 

care  and  custody  and  under  the  control  of  said  marshal, 

until  he  shall  obtain  possession  by  process  of  law.     And 

cost  of  seizure.  i\1G  cost  0f  seizure  made  before  process  issues  shall  be  tax- 

WMsky,  tobac-  a \y\e  Dy  i\ie  COurt.     And  where  any  whisky  or  tobacco,  or 

co,  etc.,  sold  on     .,         J    . .   ,        „  ,.  i  _    •    •    _i_ 1 

distraint,  forfeit- other  article  of  manufacture  or  produce,  requiring  brands, 
band's ,m&?d stamps  or  marks  of  whatever  kind  to  be  placed  thereon, 
nxedPb  ^mclr^" snan"  ^e  so^  uPon  distraint,  forfeiture,  or  other  process 
provided  by  law,  the  same  not  having  been  branded, 
stamped,  or  marked,  as  required  by  law,  the  officer  selling 
the  same  shall,  upon  sale  thereof,  fix  or  cause  to  be  affixed 
the  brands,  stamps,  or  marks,  so  required,  and  deduct  the 
expense  thereof  from  the  proceeds  of  such  sale. 

Stamping  tobacco,  snuff,  or  cigars  sold  under  distraint  or  for- 
feited.    (Sec.  3369,  p.  267.) 

Destruction  of  forfeited  tobacco,  snuff,  or  cigars  which  will 
not  sell  for  a  price  equal  to  the  tax.     (Sec.  3369,  p.  267.) 

Provision  where  spirits  will  not  sell  for  price  equal  to  tax. 
(Sees.  3334,  p.  226,  3450,  p.  357;  Regulations  No.  2,  revised,  p.  47.) 

Property  sold  under  distraint.     (Sec.  3191,  p.  99.) 

Collectors  should  be  careful  to  render  to  the  clerk  of  the  court 
their  bill  of  costs  as  soon  as  the  marshal  takes  possession  of  the 
property,  or  very  soon  thereafter,  which  expenses  are  payable 
from  appropriation  "Salaries,  fees,  and  expenses  of  marshals, 
United  States  courts."     (XIII  Comp.  Dec,  316.) 

Payment  of  expenses  of  collectors  in  seizure  cases:  Expenses 
incurred  by  a  collector  of  internal  revenue  in  the  care  of  prop- 
erty seized  for  violation  of  law  and  turned  over  to  the  marshal 
under  the  provisions  of  section  3458  are  payable  from  the  appro- 
priation for  "Miscellaneous  expenses,  Internal-Revenue  Serv- 
ice."   (T.  D.  1506,  June  8,  1909.) 

Payment  of  expenses  of  marshals:  Expenses  incurred  by  a  mar- 
shal in  the  care  of  property  turned  over  to  him  by  a  collector 
under  the  provisions  of  section  3458,  when  taxed  by  the  court, 
are  payable  from  the  appropriation  for  "  Salaries,  fees,  and  ex- 
penses of  marshals,  United  States  courts,"  even  though  all  pro- 
ceedings be  compromised  under  the  provisions  of  sections  3229 
and  3230,  Revised  Statutes.     (T.  D.  1507,  June  8,  1909.) 

The  provision  allowing  the  court  to  tax  in  favor  of  the  col- 
lector the  costs  of  seizure  made  before  process  issues  may  be 
properly  construed  to  cover  any  necessary  expenses  of  watching 
property  seized  by  a  collector  for  such  time  as  shall  necessarily 
elapse  between  the  seizure  by  the  collector  and  the  seizure  by 
the  marshal  under  process;  but  it  can  not  be  extended  to  cover 
a  charge  for  custody  during  an  unreasonable  delay.  (Fifteen 
Empty  Barrels,  etc.  (1867),  1  Ben.,  125.) 

Bonding  p  e  r-     Sec.  3459.  When  any  property  which  is  seized  under  the 
seizaebd%tcg0°ds foregoing  provisions  of  section  thirty-four  hundred  and 
fifty-three  is  liable  to  perish  or  become  greatly  reduced  in 
price  or  value  by  keeping,  or  when  it  cannot  be  kept  with- 
out great  expense,  the  owner  thereof,  or  the  marshal  of  the 


PROVISIONS   COMMON    TO   SEVERAL  OBJECTS    OP    TAXATION.       363 

district,  may  apply  to  the  collector  of  the  district  to  ex- 
amine it;  and  if,  in  the  opinion  of  the  said  collector,  it 
shall  be  necessary  that  the  said  property  should  be  sold  to 
prevent  such  waste  or  expense,  he  shall  appraise  the  same; 
and  thereupon  the  owner  shall  have  said  property  re- 
turned to  him  upon  giving  bond  in  such  form  as  may  be 
prescribed  by  the  Commissioner  of  Internal  Revenue,  and 
in  an  amount  equal  to  the  appraised  value,  with  such 
sureties  as  the  collector  shall  deem  good  and  sufficient,  to 
abide  the  final  order,  decree,  or  judgment  of  the  court  hav- 
ing cognizance  of  the  case,  and  to  pay  the  amount  of  said 
appraised  value  to  the  collector,  marshal,  or  otherwise,  as 
he  may  be  ordered  and  directed  by  the  court,  which  bond 
shall  be  filed  by  said  collector  with  the  United  States  dis- 
trict attorney  for  the  district  in  which  said  proceedings 
in  rem  may  be  commenced:  Provided,  That  in  case  said 
bond  shall  have  been  executed  and  the  property  returned 
before  seizure  thereof  by  virtue  of  the  process  aforesaid, 
the  marshal  shall  give  notice  of  pendency  of  proceedings 
in  court  to  the  parties  executing  said  bond,  by  personal 
service  or  publication,  and  in  such  manner  and  form  as  the 
court  may  direct,  and  the  court  shall  thereupon  have  juris- 
diction of  said  matter  and  parties  in  the  same  manner  as 
if  such  property  had  been  seized  by  virtue  of  the  process 
aforesaid.  But  if  said  owner  shall  neglect  or  refuse  to  sale  for  want 
give  said  bond,  the  collector  shall  issue  to  a  deputy  col-0 
lector  or  to  the  marshal  aforesaid  an  order  to  sell  the  same; 
and  the  deputy  collector  or  marshal  shall  thereupon  ad- 
vertise and  sell  the  said  property  at  public  auction  in  the 
same  manner  as  goods  may  be  sold  on  final  execution  in 
said  district;  and  the  proceeds  of  the  sale,  after  deducting 
the  reasonable  costs  of  the  seizure  and  sale,  shall  be  paid 
to  the  court  aforesaid,  to  abide  its  final  order,  decree,  or 
judgment. 

See  section  3331,  page  224,  as  to  release  of  distilleries. 

Form  of  bond  authorized  by  section  3459  for  release  of  prop- 
erty seized  under  section  3453,  Revised  Statutes.  (Regulations 
No.  12,  revised,  p.  50.) 

United  States  v.  Ninety-two  Barrels  (27  Fed.  Cas.  No.  15892; 
8  Blatch. ,-480).  United  States  v.  17  Empty  Barrels  (3  Dill. ,  285; 
27  Fed.  Cas.  No.  16255;  21  Int.  Rev.  Rec,  391).  United  States 
v.  A  lot  of  Leaf  Tobacco  (2  Ben.,  76;  Fed.  Cas.  No.  15627;  6  Int. 
Rev.  Rec,  222).     United  States  v.  59,650  Cigars  (T.  D.,  992). 

Sec.  3460.  In  all  cases  of  seizure  of  any  goods,  wares,  or    Proceedings  on 

i  i .  i.  i   •       i   i      £      p    •  j  l  seizure    of   goods 

merchandise,  as  being  subject  to  forfeiture  under  any  pro-  valued  at  $.500  or 
vision  of  the  internal-revenue  laws,  which,  in  the  opinion  less- 
of  the  collector  or  deputy  collector  making  the  seizure,  are 
of  the  appraised  value  of  five  hundred  dollars  or  less,  the 
said  collector  or  deputy  collector  shall,  except  in  cases 
otherwise  provided,  proceed  as  follows: 

First.  He  shall  cause  a  list  containing  a  particular  de-  dement1   ap" 
scription  of  the  goods,  wares,  or  merchandise  seized  to  be 
prepared  in  duplicate,  and  an  appraisement  thereof  to  be 
made  by  three  sworn  appraisers,  to  be  selected  by  him, 
who  shall  be  respectable  and  disinterested  citizens  of  the 


364       PROVISIONS    COMMON   TO   SEVERAL   OBJECTS   OF   TAXATION. 

United  States  residing  within  the  collection -district 
wherein  the  seizure  was  made.  Said  list  and  appraise- 
ment shall  be  properly  attested  by  the  said  collector  or 
deputy  collector  and  the  said  appraisers,  for  which  service 
each  of  the  said  appraisers  shall  be  allowed  the  sum  of  one 
dollar  and  fifty  cents  a  day,  to  be  paid  in  the  manner  pro- 
vided by  law  for  other  necessary  charges  of  collectors. 
Notice  of  seiz-  Second.  If  the  said  goods  are  found  by  the  said  apprais- 
ers to  be  of  the  value  of  five  hundred  dollars  or  less,  the 
said  collector  or  deputy  collector  shall  publish  a  notice  for 
three  weeks,  in  some  newspaper  of  the  district  where  the 
seizure  was  made,  describing  the  articles,  and  stating  the 
time,  place,  and  cause  of  their  seizure,  and  requiring  any 
person  claiming  them  to  appear  and  make  such  claim 
within  thirty  days  from  the  date  of  the  first  publication  of 
such  notice. 
ciaim  to  be     Third.  Any  person  claiming  the  goods,  wares,  or  mer- 

filed'  chandise  so  seized,  within  the  time  specified  in  the  notice, 

may  file  with  the  said  collector  or  deputy  collector  a  claim, 
stating  his  interest  in  the  articles  seized,  and  may  execute 
Bond  of  claim-  a  bond  to  the  United  States  in  the  penal  sum  of  two  hun- 
dred and  fifty  dollars,  with  sureties  to  be  approved  by  the 
said  collector  or  deputy  collector,  conditioned  that,  in  case 
of  condemnation  of  the  articles  so  seized,  the  obligors  shall 
pay  all  the  costs  and  expenses  of  the  proceedings  to  obtain 
such  condemnation;  and  upon  the  delivery  of  such  bond 
to  the  collector  or  deputy  collector,  he  shall  transmit  the 
same,  with  the  duplicate  list  or  description  of  the  goods 
seized,  to  the  United  States  district  attorney  for  the  dis- 
trict, and  said  attorney  shall  proceed  thereon  in  the  ordi- 
nary manner  prescribed  by  law. 
sale  of  goods     Fourth.  If  no  claim  is  interposed  and  no  bond  is  given 

proceedsposa'  of  within  the  time  above  specified,  the  collector  or  deputy 
collector,  as  the  case  may  be,  shall  give  ten  days'  notice  of 
the  sale  of  the  goods,  wares,  or  merchandise  by  publica- 
tion, and,  at  the  time  and  place  specified  in  the  notice, 
shall  sell  the  articles  so  seized  at  public  auction,  and,  after 
deducting  the  expense  of  appraisement  and  sale,  he  shall 
deposit  the  proceeds  to  the  credit  of  the  Secretary  of  the 
Treasury. 

Instructions  as  to  the  mode  of  procedure  under  this  section. 
(Regulations,  No.  2,  revised,  p.  45.) 

Instructions  as  to  disposition  of  property  seized.  (Cir.  No. 
580;  T.  D.  209.) 

Instructions  in  regard  to  reports.     (T.  D.  623.) 

The  gross  amount  of  proceeds  of  sale  to  be  covered  into  the 
Treasury.  (Act  of  May  27,  1908,  35  Stat.,  325,  p.  108;  T.  D. 
1373;  Cir.  725,  June  5,  1908.) 

Provision  relative  to  spirits  which  will  not  sell  for  price  equal 
to  the  tax.     (Sec.  3334,  p.  226.) 

Application  for     gEC_  3461.  Within  one  year  after  the  sale  of  any  goods, 

remission  and  re-  it  •  i      i    •       ,  i  j  •     „ 

turn  of  proceeds;  wares,  or  merchandise,  as  provided  m  the  preceding  sec- 
distribution.       tion^  any  person  claiming  to  be  interested  in  the  property 

sold  may  apply  to  the  Secretary  of  the  Treasury  for  a  re- 
mission of  the  forfeiture  thereof,  or  of  any  part  thereof, 


PROVISIONS    COMMON    TO   SEVERAL,   OBJECTS    OF    TAXATION.       365 

and  a  restoration  of  the  proceeds  of  the  sale;  and  the  said 
Secretary  may  grant  the  same  upon  satisfactory  proof,  to 
be  furnished  in  such  manner  as  he  shall  prescribe:  Pro- 
vided, That  it  shall  be  satisfactorily  shown  that  the  appli- 
cant, at  the  time  of  the  seizure  and  sale  of  the  said  prop- 
erty, and  during  the  intervening  time,  was  absent,  out  of 
the  United  States,  or  in  such  circumstances  as  prevented 
him  from  knowing  of  the  seizure,  and  that  he  did  not  know 
of  the  same ;  and  also  that  the  said  forfeiture  was  incurred 
without  willful  negligence  or  any  intention  of  fraud  on  the 
part  of  the  owner  of  said  property.  If  no  application  for 
such  restoration  is  made  within  one  year,  as  hereinbefore 
prescribed,  the  Secretary  of  the  Treasury  shall,  at  the 
expiration  of  the  said  time,  cause  the  proceeds  of  the  sale 
of  the  said  property  to  be  distributed  according  to  law,  as 
in  the  case  of  goods,  wares,  or  merchandise  condemned 
and  sold  pursuant  to  the  decree  of  a  competent  court. 

Sec.  3462.  The  several  judges  of  the  circuit  and  district  search  war- 
courts  of  the  United  States,  and  commissioners  of  the  cir-ran  " 
cuit  courts,  may,  within  their  respective  jurisdictions, 
issue  a  search-warrant,  authorizing  any  internal-revenue 
officer  to  search  any  premises  within  the  same,  if  such 
officer  makes  oath  in  writing  that  he  has  reason  to  believe, 
and  does  believe,  that  a  fraud  upon  the  revenue  has  been 
or  is  being  committed  upon  or  by  the  use  of  the  said 
premises. 

24  Op.  Atty.  Gen.,  685. 

Although  the  search  warrant  may  have  been  improvidently 
issued,  the  evidence  obtained  by  means  of  the  search  is  not 
inadmissible.     (Ripper  v.  United  Slates,  T.  D.  1609.) 

Sec.  3463.  The  Commissioner  of  Internal  Revenue,  with    Detection  and 

.       „  0  .  '   .  punishment       of 

the  approval  ol  the  Secretary  of  the  J  reasuiy,  is  author- frauds. 
ized  to  pay  such  sums,  not  exceeding  in  the  aggregate  the 
sum  appropriated  therefor,  as  he  may  deem  necessary  for 
detecting  and  bringing  to  trial  and  punishment  persons 
guilty  of  violating  the  internal-revenue  laws,  or 'conniving 
at  the  same,  in  cases  where  such  expenses  are  not  other- 
wise provided  for  by  law. 

Moieties  repealed,  section  39,  act  of  June  6,  1872.  (17  Stat., 
256.)  "Sanborn  contract,"  under  act  of  May  8,  1872  (17  Stat., 
69),  was  repealed  June  22,  1874,  (18  Stat.,  192.) 

Construction  of  offer  of  $300  reward  and  Circular  No.  99  and 
its  revisions.  (15  Op.  Atty.  Gen.,  88  (Pierpont);  Williams  v. 
United  States,  12  Ct.  Cls.,  193;  Briggs  v.  United  States,  15  Ct. 
Cls.,  48.) 

As  to  marshal  or  deputy  marshal  receiving  reward.  A  contract 
to  pay  a  reward  for  the  arrest  of  a  felon  is  valid  if  not  made  with 
a  public  officer  or  employee  on  whom  the  law  imposes  the  duty 
of  making  such  arrest,  or  with  some  officer  or  employee  otherwise 
excluded  from  the  right  to  receive  such  reward.  (Hutsel  Ama- 
rine's  case,  2  Lawrence  Dec,  545;  28  Int.  Rev.  Rec,  21.) 

The  payment  of  a  reward  to  an  officer  for  services  within  the 
scope  of  his  official  duties  is  contrary  to  public  policy.  (Mat- 
thews &  Gunn  v.  United  States,  32  Ct.  Cls.,  123.) 

The  authority  conferred  upon  the  Attorney  General  by  the 
act  of  March  3,  1891  (26  Stat.,  985)  to  offer  rewards  for  the  detec- 
tion and  prosecution  of  crimes  against  the  United  States,  pre- 


366       PROVISIONS    COMMON    TO    SEVERAL   OBJECTS   OF    TAXATION. 

liminary  to  the  indictment,  empowered  him  to  authorize  the 
marshal  of  the  northern  district  of  Florida  to  offer  a  reward  for 
the  arrest  and  delivery  of  a  person  accused  of  the  committal  of 
a  crime  against  the  United  States  in  that  district,  the  reward 
to  be  paid  upon  conviction;  and  a  deputy  marshal,  who  had 
complied  with  all  the  conditions  of  the  offer  and  of  the  statute, 
was  entitled  to  receive  the  amount  of  the  reward  offered. 
(United  States  v.  Matthews,  173  U.  S.,  381.) 

Eager  v.  U.  S.,  35  Ct.  Cls.,  447. 

Effect  of  repeal  of  act  allowing  moieties  on  informer's  claim 
for  information  given  prior  to  repeal.  (United  States  v.  Connor, 
138  U.  S.,  61.) 

Rewards  for  information  leading  to  the  detection  and  punish- 
ment of  persons  violating  internal-revenue  laws.  (Circular,  Int. 
Rev.,  No.  99,  4th  revision,  Treas.  Dec.  (1899),  No.  21856.)"  ^Reg- 
ulations, No.  12,  revised,  page  51. 

Commissioner  authorized  to  offer  a  reward  for  the  recovery  of 
taxes  evaded.     (15  Op.  Atty.  Gen.,  133;  22  Int.  Rev.  Rec,  229.) 

Authority  of  Commissioner  to  bind  the  Government  by  prom- 
ising to  pay  for  information.  Informer  who  receives  less  than  10 
per  cent  can  not  recover  the  difference  in  the  Court  of  Claims. 
(Green  v.  United  States,  17  Ct.  Cls.,  238;  28  Int.  Rev.  Rec,  208.) 

Right  of  Commissioner  and  Secretary  to  fix  amount  of  reward. 
(E.  D.  Crane  v.  United  States,  34  Int.  Rev.  Rec,  414;  23  Ct.  Cls., 
94.) 

In  the  matter  of  the  authority  of  persons  employed  under  sec- 
tion 3463  to  visit,  enter  into,  and  examine  distilleries,  etc.  (4 
Lawrence  Dec,  60.) 

[Sec.  3463a.]  [Extract  from  appropriation  hill  {sundry 
civil)  for  the  fiscal  year  enSmg  June  30, 1911,  act  of  June  25, 
1910  (36  Stat.,  713) .]  Punishment  for  violations  of  internal- 
Appropriation  revenue  laws:   For  detecting  and   bringing  to  trial  and 
frauds.6  e    ' n  s  punishment  persons  guilty  of  violating  the  internal-reve- 
nue laws  or  conniving  at  the  same,  including  payments 
for  information  and  detection  of  such  violations,  one  hun- 
dred and  fifty  thousand  dollars ;  and  the  Commissioner  of 
statement    to  Internal  Revenue  shall  make  a  detailed  statement  to 
congress.  Congress  once  in  each  year  as  to  how  he  has  expended  this 

sum,  and  also  a  detailed  statement  of  all  miscellaneous 
expenditures  in  the  Bureau  of  Internal  Revenue  for  which 
appropriation  is  made. 

The  same  provision  is  contained  in  the  act  of  March  4,  1911. 
(Sundry  civil  appropriation  act  for  1912.) 

A  provision  similar  to  the  above  respecting  statements  to  Con- 
gress has  been  in  appropriation  bills  as  to  the  fraud  fund  since 
the  act  of  June  19,  1878  (20  Stat.,  187),  and  as  to  miscellaneous 
expenses  of  the  Bureau  since  the  act  of  June  15,  1880  (21  Stat., 
20). 

The  use  of  words  "once  in  each  year,"  in  the  second  part  of 
the  paragraph,  would  seem  to  indicate  a  permanent  character. 

The  concluding  part  of  the  paragraph  relates  apparently  only 
to  the  miscellaneous  expenditures  for  the  particular  year  for 
which  appropriation  is  made  by  this  act.  (Note  in  Supp.  R.  S., 
vol.  2,  p.  121.) 

It  is  the  right  of  every  private  citizen  of  the  United  States  to 
inform  a  marshal  of  the  "United  States,  or  his  deputy,  of  a  viola- 
tion of  the  internal-revenue  laws;  this  right  is  secured  by  the 
Constitution;  and  a  conspiracy  to  injure,  oppress,  threaten,  or 
intimidate  him  in  the  free  exercise  or  enjoyment  of  this  right, 
or  because  of  his  having  exercised  it,  is  punishable  under  sec. 
5508,  Revised  Statutes  (superseded  by  sec.  19  Criminal  Code, 
act  Mar.  4,  1909).     (In  re  Quarles  and  Butler,  158  U.  S.,  532.) 


PROVISIONS    COMMON    TO   SEVERAL.   OBJECTS    OF    TAXATION.       367 

In  Worthington  v.  Scribner  (109  Mass.,  487)  the  principle  was 
laid  down  that  it  is  the  duty  of  every  citizen  to  communicate  to 
his  Government  any  information  which  he  has  of  the  commission 
of  an  offense  against  its  laws;  and  that  a  court  of  justice  will 
not  compel  or  allow  such  information  to  be  disclosed,  either  by 
the  subordinate  officer  to  whom  it  is  given,  by  the  informer 
himself,  or  by  any  other  person,  without  the  permission  of  the 
Government,  the  evidence  being  excluded  not  for  the  protection 
of  the  witness  or  of  the  party  in  the  particular  case,  but  upon 
general  grounds  of  public  policy,  because  of  the  confidential 
nature  of  such  communications.  The  authorities  are  collected 
and  reviewed  in  that  case.     (Vogel  v.  Gruaz,  110  U.  S.,  311.) 

Compensation  of  possemen.     (T.  D.  1513.) 

Sec.  3464.  The  privilege  of  purchasing  supplies  of  goods    p u£^j°fnef°£ 
imported  from  foreign  countries  for  the  use  of  the  United  goods  subject  to 
States,  duty  free,  which  now  does  or  hereafter  shall  exist tax- 
by  provision  of  law,  shall  be  extended,  under  such  regula- 
tions as  the  Secretary  of  the  Treasury  may  prescribe,  to  all 
articles  of  domestic  production  which  are  subject  to  tax  by 
the  provisions  of  this  Title. 

26  Op.  Atty.  Gen.,  449. 

The  provisions  of  this  section  (34G4  R.  S.)  were  not  repealed 
by  the  tariff  act  of  October  1,  1890.  (Op.  Solicitor  of  the  Treas- 
ury, Nov.  11,  1891.) 

Section  16  of  the  act  of  June  26,  1884  (commonly  called  the 
shipping  act),  as  amended  by  section  14  of  the  act  of  July  24, 
1897  (30  Stat.,  151),  provides: 

"That  all  articles  of  foreign  or  domestic  production  needed 
and  actually  withdrawn  from  bonded  warehouses  and  bonded 
manufacturing  warehouses  for  supplies  (not  including  equip- 
ment) of  vessels  of  the  United  States  engaged  in  foreign  trade, 
or  in  trade  between  the  Atlantic  and  Pacific  ports  of  the  United 
States,  may  be  so  withdrawn  from  said  bonded  warehouses, 
free  of  duty  or  of  internal-revenue  tax,  as  the  case  may  be, 
under  such  regulations  as  the  Secretary  of  the  Treasury  may 
prescribe;  but  no  such  article  shall  be  landed  at  any  port  of  the 
United  States." 

Regulations  in  pursuance  of  the  above  provisions  September 
24,  1897,  Department  circular  No.  155.  (T.  D.  18379;  T.  D. 
18643 ;  T.  D.  19262.)  Articles  743  to  748,  both  inclusive,  Customs 
Regulations,  1908. 

The  immunity  from  liability  to  tax  is  limited  to  the  actual 
contents  of  the  packages.  (Op.  Atty.  Gen.;  30  Int.  Rev.  Rec, 
94;  ibid.,  101;  33  Int.  Rev.  Rec,  269.) 

Withdrawal  of  distilled  spirits  from  bonded  warehouse  for  use 
of  the  United  States,  free  of  tax,  under  provisions  of  section 
3464,  Regulations  No.  7,  revised,  p.  247. 

Sec.  2982  [as  amended  by  sec.  21  Act  of  Aug.  5,  1909,  v^seign  war 
(36  Stat.,  8S)].  The  privilege  of  purchasing  supplies  from 
public  warehouses,  free  of  duty,  and  from  bonded  manu- 
facturing warehouses,  free  of  duty  or  of  internal-revenue 
tax,  as  the  case  may  be,  shall  be  extended,  under  such 
regulations  as  the  Secretary  of  the  Treasury  shall  pre- 
scribe, to  the  vessels  of  war  of  any  nation  in  ports  of  the 
United  States  which  may  reciprocate  such  privileges 
toward  the  vessels  of  war  of  the  United  States  in  its 
ports. 

Tariff  act  of  August  5,  1909. — Instructions  for  the  guidance  of 
officers  of  the  customs,  extending  existing  regulations  prescribed 
under  the  tariff  act  of  July  24,  1897,  and  other  acts,  to  importa- 
tions under  the  act  of  August  5,  1909,  wherever  applicable. 
(Circular  No.  35;  T.  D.  29939,  Aug.  6,  1909.) 


368       PROVISIONS    COMMON   TO    SEVERAL  OBJECTS  OF   TAXATION. 

ac?0Mlrrchet2to"«3°3     Sec'  3465#  An  act  entitled  "An  act  further  to  provide 
(4  stat.. 632J.      for  the  collection  of  duties  on  imports/'  passed  March 

second,  eighteen  hundred  and  thirty-three,  shall  not  be  so 
construed  as  to  apply  to  cases  arising  under  an  act  enti- 
tled "An  act  to  provide  internal  revenue  to  support  the 
Government,  to  pay  interest  on  the  public  debt,  and  for 
other  purposes,"  passed  June  thirtieth,  eighteen  hundred 
and  sixty-four,  or  any  act  in  addition  thereto  or  in  amend- 
ment thereof,  nor  to  any  case  in  which  the  validity  or  in- 
terpretation of  said  act  or  acts  shall  be  in  issue. 

Hornthall  v.  The  Collector  (9  Wall.,  566);  The  Assessor  v. 
Osbornes  (9  Wall.,  577). 

The  words  "revenue  laws, "  where  used  broadly  and  generally, 
include  internal  revenue  as  well  as  customs  laws.  (United  States 
v.  Dustin,  15  Int.  Rev.  Rec,  30.) 

AN  ACT  Relative  to  recognizances,  stipulations,  bonds,  and  under- 
takings, and  to  allow  certain  corporations  to  be  accepted  as  surety 
thereon. 

[Act  Aug.  13, 1894  (28  Stat.,  279),  amended  by  act  of  Mar.  23,  1910  (36  Stat.,  241]). 

That  whenever  any  recognizance,  stipulation,  bond,  or 
undertaking  conditioned  for  the  faithful  performance  of 
any  duty,  or  for  doing  or  refraining  from  doing  any- 
thing in  such  recognizance,  stipulation,  bond,  or  under- 
taking specified,  is  by  the  laws  of  the  United  States 
required  or  permitted  to  be  given  with  one  surety  or 
with  two  or  more  sureties,  the  execution  of  the  same  or  the 
guaranteeing  of  the  performance  of  the  condition  thereof 
edB°a"dS  raara^s^ia^  ^e  sufficient  when  executed  or  guaranteed  solely 
teed    solely  "by  by   a  corporation  incorporated  under  the  laws  of  the 
when  sumdent.11' United  States,  or  of  any  State  having  power  to  guarantee 
the  fidelity   of   persons   holding  positions   of  public  or 
private  trust,  and  to  execute  and  guarantee  bonds  and 
undertakings  in  judicial  proceedings:  Provided,  That  such 
recognizance,  stipulation,  bond,  or  undertaking  be  ap- 

E roved  by  the  head  of  department,  court,  judge,  officer, 
oard,  or  body  executive,  legislative,  or  judicial  required 
to  approve  or  accept  the  same.  But  no  officer  or  person 
having  the  approval  of  any  bond  shall  exact  that  it  shall 
be  furnished  by  a  guarantee  company  or  by  any  par- 
ticular guarantee  company. 

Sec.  2.  That  no  such  company  shall  do  business  under 
the  provisions  of  tliis  Act  beyond  the  limits  of  the  State 
or  Territory  under  whose  laws  it  was  incorporated  and  in 
which  its  principal  office  is  located,  nor  beyond  the  limits 
of  the  District  of  Columbia,  when  such  company  was  incor- 
porated under  its  laws  or  the  laws  of  the  United  States  and 
its  principal  office  is  located  in  said  District,  until  it  shall 
Power  of  attor-by  a  written  power  of  attorney  appoint  some  person  resid- 
ing within  the  jurisdiction  of  the  court  for  the  judicial 
district  wherein  such  suretyship  is  to  be  undertaken,  who 
shall  be  a  citizen  of  the  State,  Territory,  or  District  of 
Columbia,  wherein  such  court  is  held,  as  its  agent,  upon 
whom  may  be  served  all  lawful  process  against  such  com- 
pany, and  who  shall  be  authorized  to  enter  an  appearance 


PROVISIONS  COMMON    TO  SEVERAL   OBJECTS    OF    TAXATION.       369 

in  its  behalf.     A  copy  of  such  power  of  attorney,  duly  cer-  ofAattomef ptTbe 
titled  and  authenticated,  shall  be  filed  with  the  clerk  of  the  filed  with  clerk 
district  court  of  the  United  States  for  such  district  at  each  court.he    dist"ct 
place  where  a  term  of  such  court  is  or  may  be  held,  which 
copy,  or  a  certified  copy  thereof,  shall  be  legal  evidence  in 
all  controversies   arising  under  this  Act.     If  any  such 
agent  shall  be  removed,  resign,  or  die,  become  insane,  or    when  agent 
otherwise  incapable  of  acting,  it  shall  be  the  duty  of  such  remove(i,  etc. 
company  to  appoint  another  agent  in  his  place  as  herein- 
before prescribed,  and  until  such  appointment  shall  have 
been  made,  or  during  the  absence  of  any  agent  of  such 
company  from  such  district,  service  of  process  may  be 
upon  the  clerk  of  the  court  wherein  such  suit  is  brought, 
with  like  effect  as  upon  an  agent  appointed  by  the  com- 
pany.    The  officer  executing  such  process  upon  such  clerk    Service  of  pro. 
shall  immediately  transmit  a  copy  thereof  by  mail  to  the  cess. 
company,  and  state  such  fact  in  his  return.    A  judgment     judgment. 
decree,  or  order  of  a  court  entered  or  made  after  service 
of  process  as  aforesaid  shall  be  as  valid  and  binding  on 
such  company  as  if  served  with  process  in  said  district. 

Sec.  3.  As  amended  by  act  of  March  23,  1910  (36  Stat.,    ^jjdfj?' 
241).    That  every  company,  before  transacting  any  busi-  corporation,0 etc1" 
ness  under  this  Act,  shall  deposit  with  the  Secretary  oj  $e  secretary6  V\he 
Treasury  of  the  United  States  a  copy  oj  its  charter  or  articles  Treasury. 
oj  incorporation,  and  a  statement,  signed  and  sworn  to  by  its 
president  and  secretary,  showing  its  assets  and  liabilities.     Ij 
the  said  Secretary  oj  the  Treasury  shall  be  satisfied  that  such 
company  has  authority  under  its  charter  to  do  the  business 
provided  jor  in  this  Act,  and  that  it  has  a  paid-up  capital  oj 
not  less  than  two  hundred  and  fifty  thousand  dollars,  in  cash 
or  its  equivalent,  and  is  able  to  Jceep  and  perform  its  con- 
tracts, he  shall  grant  authority  in  writing  to  such  company 
to  do  business  under  this  Act. 

Sec.  4.    That  every  such  company  shall,  in  the  months  of .  T^   company 
January,  April,  July,  and  October  oj  each  year,  file  with  the  during  the  year, 
said  Secretary  oj  the  Treasury  a  statement,  signed  and  sworn^^1^  'uabiii- 
to  by  its  president  and  secretary,  showing  its  assets  and  lia-  ties- 
bilities,  as  is  required  by  section  three  oj  this  Act.     And  the 
said  Secretary  oj  the  Treasury  shall  have  the  power,  and  it 
shall  be  his  duty,  to  revoke  the  authority  oj  any  such  company 
to  transact  any  new  business  under  this  Act  whenever  in  his 
judgment  such  company  is  not  solvent  or  is  conducting  its 
business  in  violation  oj  this  Act.     He  may  institute  inquiry 
at  any  time  into  the  solvency  oj  said  company  and  may  re- 
quire that  additional  security  be  given  at  any  time  by  any 
principal  when  he  deems  such  company  no  longer  suffioient 
security. 

An  act  to  amend  an  act  approved  August  13,  1894,  entitled 
"An  Act  relative  to  recognizances,  stipulations,  bonds,  and 
undertakings,  and  to  allow  certain  corporations  to  be  accepted 
as  surety  thereon,"  approved  March  23,  1910.     (36  Stat.,  241.) 

Sec.  5.  That  any  surety  company  doing  business  under    company  may 
the  provisions  of  this  Act  may  be  sued  in  respect  thereof  u.  sb!courtn  any 

72170°— 11 24 


370       PROVISIONS   COMMON   TO    SEVERAL   OBJECTS   OF    TAXATION. 

in  any  court  of  the  United  States  which  has  now  or  here- 
after may  have  jurisdiction  of  actions  or  suits  upon  such 
recognizance,  stipulation,  bond,  or  undertaking,  in  the  dis- 
trict in  which  such  recognizance,  stipulation,  bond,  or 
undertaking  was  made  or  guaranteed,  or  in  the  district  in 
which  the  principal  office  of  such  company  is  located. 
And  for  the  purposes  of  this  Act  such  recognizance,  stipu- 
lation, bond,  or  undertaking  shall  be  treated  as  made  or 
guaranteed  in  the  district  in  which  the  office  is  located,  to 
which  it  is  returnable,  or  in  which  it  is  filed,  or  in  the  dis- 
trict in  winch  the  principal  in  such  recognizance,  stipula- 
tion, bond,  or  undertaking  resided  when  it  was  made  or 
guaranteed. 
Neglect  or  re-  Sec.  6.  That  if  any  such  company  shall  neglect  or  refuse 
mlntt0or a^cree" to  pay  any  final  judgment  or  decree  rendered  against  it 
etc-  upon  any  such  recognizance,  stipulation,  bond,  or  under- 

taking made  or  guaranteed  by  it  under  the  provisions  of 
this  Act,  from  which  no  appeal,  writ  of  error,  or  super- 
sedeas has  been  taken,  for  thirty  days  after  the  rendition 
of  such  judgment  or  decree,  it  shall  forfeit  all  right  to  do 
business  under  this  Act. 
company    es-     Sec.  7.  That  any  company  which  shall  execute  or  guar- 
it0sPPcefri0ordaeteantee  anY  recognizance,  stipulation,  bond,  or  undertaking 
power,  etc.         under  the  provisions  of  this  Act  shall  be  estopped  in  any 
proceeding  to  enforce  the  liability  which  it  shall  have 
assumed  to  incur,  to  deny  its  corporate  power  to  execute 
or  guarantee  such  instrument  or  assume  such  liability. 
iFaiwitht0  r°m"     Sec.  8.  That  any  company  doing  business  under  the 
Fio^nsTfthis^ct.1  provisions  of  this  Act  which  shall  fail  to  comply  with  any 
Forfeiture.       Qf  j^s  provisions  shall  forfeit  to  the  United  States  for  every 
such  failure  not  less  than  five  hundred  dollars  nor  more 
than  five  thousand  dollars,  to  be  recovered  by  suit  in  the 
name  of  the  United  States  in  the  same  courts  in  which  suit 
may  be  brought  against  such  company  under  the  pro- 
visions of  this  Act,  and  such  failure  shall  not  affect  the 
validity  of  any  contract  entered  into  by  such  company. 

Instructions  regarding  preparation  of  bonds  executed  by  cor- 
porate sureties.  (Cir.  No.  711;  T.  D.  1279;  Int.  Rev.  Mini.  Cir. 
No.  562;  T.  D.  1382.) 

Execution  of  bonds  on  other  forms  than  those  furnished  by 
the  Government  forbidden.     (T.  D.  1591.) 

Collectors  are  forbidden  to  exact  that  bonds  shall  be  furnished 
by  a  guarantee  company  or  any  particular  guarantee  company. 
(T.  D.  1155.) 

Actual  liability  of  surety  companies  on  outstanding  warehous- 
ing bonds,  and  not  the  full  penal  sum  of  such  bonds,  to  be  here- 
after certified  by  collectors,  and  to  be  taken  into  account  in 
determining  the  qualification  of  such  companies  to  new  bonds 
offered  by  the  same  principal.     (T.  D.  1316.) 

Acknowledgment  of  bonds  no  longer  required.     (T.  D.  1370.) 

Regulations  applicable  to  surety  companies  doing  business 
with  the  United  States  under  the  act  of  August  13,  1894,  as 
amended.  (Dept.  Circular  No.  54;  T.  D.  30937,  September  21, 
1910.) 

Sureties  on  official  bonds  can  not  withdraw  from  such  bonds 
without  the  consent  of  the  United  States,  and  notice  to  the 
appropriate  Department  that  they  will  be  no  longer  bound  is 
ineffective  to  relieve  them  from  liability  for  subsequent  defalca- 


PROVISIONS  COMMON    TO  SEVERAL   OBJECTS    OF    TAXATION.       371 

tiona  of  their  principal.     (United  States  v.   Campbell  (1909), 
circuit  court  of  appeals,  170  Fed.  Rep.,  318.) 

This  act  requires  the  appointment  of  a  process  agent  in  the 
district  where  the  principal  resides,  and  also  in  the  district  where 
the  contract  is  to  be  performed,  and  where  the  bond  is  return- 
able or  filed.     (28  Op.  Atty.  Gen.,  34.) 

OFFICIAL    BONDS. 

[Extract  from  legislative,  executive,  and  judicial  appropriation  act,  approved  March  2, 

1895  (28  Stat.,  807).] 

Sec.  5.     *******     Hereafter  all  bonds  of  lee^0Sf  taLS 
the  Treasurer  of  the  United  States,  collectors  of  internal  revenue    to    be 

,,  i       m  i        .1         filed  with  Secre- 

revenue,  collectors,  naval  officers,  surveyors,  and  other  tary  of  Treasury, 
officers  of  the  customs,  either  as  such  omcers  or  as  dis- 
bursing omcers  of  the  Treasury,  bonds  of  the  Secretary  of 
the  Senate,  Clerk  of  the  House  of  Representatives,  and 
the  Sergeant-at-Arms  of  the  House  of  Representatives, 
and  all  such  bonds  now  on  file  in  the  office  of  the  Comp- 
troller of  the  Treasury,  shall  be  transmitted  to  the  Sec- 
retary of  the  Treasury  and  filed  as  he  may  direct;  and 
the  duties  now  required  by  law  of  the  Comptroller  of  the 
Treasury  in  regard  to  such  bonds,  as  the  successor  of  the 
Commissioner  of  Customs  and  First  Comptroller  of  the 
Treasury,  shall  hereafter  be  performed  by  the  Secretary 
of  the  Treasury. 

Hereafter  every  officer  required  b}T  law  to  take  and  ap-  to0beCiexarnined 
prove  official  bonds  shall  cause  the  same  to  be  examined  at    least    every 
at  least  once  every  two  years  for  the  purpose  of  ascertain-  wo  years 
ing  the  sufficiency  of  the  sureties  thereon;  and  every 
officer  having  power  to  fix  the  amount  of  an  official  bond 
shall  examine  it  to  ascertain  the  sufficiency  of  the  amount 
thereof  and  approve  or  fix  said  amount  at  least  once  in 
two  years  and  as  much  oftener  as  he  may  deem  it  neces- 
sary. 

Hereafter  every  officer  whose  duty  it  is  to  take  and  orBo"treVXened 
approve  official  bonds  shall  cause  all  such  bonds  to  be  every  four  years 
renewed  every  four  years  after  their  dates,  but  he  may or  oftener' 
require  such  bonds  to  be  renewed  or  strengthened  oftener 
if  he  deem  such  action  necessary.     In  the  discretion  of 
such   officer  the  requirement  of   a  new   bond  may   be 
waived  for  the  period  of  service  of  a  bonded  officer  after 
the  expiration  of  a  four-year  term  of  service  pending  the 
appointment  and  qualification  of  his  successor:  Provided, 
That  the  nonperformance  of  any  requirement  of  this  sec- 
tion on  the  part  of  any  official  of  the  Government  shall 
not  be  held  to  affect  in  any  respect  the  liability  of  prin- 
cipal or  sureties  on  any  bond  made  or  to  be  made  to  the 
United  States:  Provided  further,  That  the  liability  of  the^™^0/^1^- 
principal  and  sureties  on  all  oilicial  bonds  shall  continue  official  bonds. 
and  cover  the  period  of  service  ensuing  until  the  appoint- 
ment and  qualification  of  the  successor  of  the  principal: 
And  provided  further,  That  nothing  in  this  section  shall  be  no^ecrePf^ed  nSor 
construed  to  repeal  or  modify  section  thirty-eight  hundred  modified.  Postal 
and  thirty-six  of  the  Revised  Statutes  of  the  United  fectel.   not 
States. 


372       PROVISIONS   COMMON   TO   SEVERAL   OBJECTS   OF   TAXATION. 

[  Extract  from  the  urgent  deficiency  appropriation  act  for  the  fiscal  vear  1909,  approved 
August  5,  1909  (36  Stat.,  118,  125).] 

*  *  *  *  * 

suBr°entdy  comp"     Until  otherwise  provided   by  law  no   bond   shall   be 
nies.  accepted  from  any  surety  or  bonding  company  for  any 

officer  or  employee  of  the  United  States  which  "shall  cost 
more  than  thirty-five  per  centum  in  excess  of  the  rate  of 
premium  charged  for  a  like  bond  during  the  calendar  year 
nineteen  hundred  and  eight :  Provided,  That  hereafter  the 
United  States  shall  not  pay  any  part  of  the  premium  or 
other  cost  of  furnishing  a  bond  required  by  law  or  other- 
wise of  any  officer  or  employee  of  the  United  States. 
s_joint  commis-  Tnafc  a  jomt  commission  consisting  of  three  Senators, 
to  be  appointed  by  the  President  of  the  Senate,  and  three 
Members  of  the  House  of  Representatives,  to  be  appointed 
by  the  Speaker  of  the  House  of  Representatives,  shall 
inquire  into  the  rates  of  premium  heretofore  and  now 
being  charged,  as  well  as  those  proposed  to  be  charged, 
by  surety  or  bonding  companies  for  bonds  of  officers  or 
employees  of  the  United  States  and  report  to  Congress  by 
bill  or  otherwise  at  its  next  session  what  regulation,  if  any, 
should  be  exercised  under  law  or  otherwise  over  the  same. 
***** 

(27  Op.  Atty.  Gen.,  597.) 

(28  Op.  Atty.  Gen.,  28,  Oct.  28,  1909.     Dept.  Circular  No.  58, 
Nov.  4,  1909.) 

Senate  Report  No.  1260,  61st  Congress,  3rd  Sess. 

[Notice  of  deficiency  in  accounts  of  principals  to  be  given  to  sureties  upon  bonds  of 
United  States  officials,  and  fixing  a  limitation  of  time  within  which  suits  shall  be 
brought  against  said  sureties  upon  said  bonds,  j 

obngors.catlon  t0  Sec-  !•  Wet  of  Aug.  8,  1888  {25  Stat.,  387).  That  here- 
after, whenever  any  deficiency  shall  be  discovered  in  the 
accounts  of  any  official  of  the  United  States,  or  of  any 
officer  disbursing  or  chargeable  with  public  money,  it 
shall  be  the  duty  of  the  accounting  officers  making  such 
discovery  to  at  once  notify  the  head  of  the  Department 
having  control  over  the  affairs  of  said  officer  of  the  nature 
and  amount  of  said  deficiency,  and  it  shall  be  the  immedi- 
ate duty  of  said  head  of  Department  to  at  once  notify  all 
obligors  upon  the  bond  or  bonds  of  such  official  of  the 
nature  of  such  deficiency  and  the  amount  thereof.  Said 
notification  shall  be  deemed  sufficient  if  mailed  at  the 
post-office  in  the  city  of  Washington ,  District  of  Columbia, 
addressed  to  said  sureties  respectively,  and  directed  to 
the  respective  post-offices  where  said  obligors  may  reside, 
if  known;  but  a  failure  to  give  or  mail  such  notice  shall 
not  discharge  the  surety  or  sureties  upon  such  bond. 

^mtwithinfive  Sec.  2.  That  if,  upon  the  statement  of  the  account  of 
any  official  of  the  United  States,  or  of  any  officer  disburs- 
ing or  chargeable  with  public  money,  by  the  accounting 
officers  of  the  Treasury,  it  shall  thereby  appear  that  he  is 
indebted  to  the  United  States,  and  suit  therefor  shall  not 
be  instituted  within  five  years  after  such  statement  of 
said  account,  the  sureties  on  his  bond  shall  not  be  liable 
for  such  indebtedness. 


PROVISIONS   COMMON    TO   SEVERAL  OBJECTS   OF    TAXATION.       373 

[Former  laws  made  applicable  to  war  revenue  act.] 

Sec.  31.  [Act  of  June  13,  1898  (30  Stat,  448).]  That  all  mfd0eriappiicabieS 
administrative,    special,    or    stamp    provisions    of    law, 
including  the  laws  in  relation  to  the  assessment  of  taxes, 
not   heretofore   specifically   repealed    are    hereby    made 
applicable  to  this  Act. 

HAWAII.  Hawaii. 

AX  ACT  To  provide  a  government  for  the  Territory  of  Hawaii.     (Act 
Apr.  30,  1900,  31  Stat.,  141.) 

[Extracts.] 

Sec.  5.  That  the  Constitution,   and  except  as  herein ^co notation 
otherwise  provided,   all  the  laws  of  the  United  States  united  states  in 
which  are  not  locally  inapplicable,  shall  have  the  same force  in  Hawan- 
force  and  effect  within  the  said  Territory  as  elsewhere  in 
the    United    States:  Provided,  That    sections    eighteen 
hundred  and  fifty  and  eighteen  hundred  and  ninety  of  the 
Revised  Statutes  of  the  United  States  shall  not  apply  to 
the  Territory  of  Hawaii. 

***** 

Sec.  87.  That  the  Territory  of  Hawaii  shall  constitute C0£SndfsiiCta 
a  district  for  the  collection  of  the  internal  revenue  of  the 
United  States,  with  a  collector,  whose  office  shall  be  at 
Honolulu,  and  deputy  collectors  at  such  other  places  in 
the  several  islands  as  the  Secretary  of  the  Treasury  shall 
direct. 

?j>  *j»  jj»  jj^  5j* 

Sec.  104.  This  Act  shall  take  effect  forty-five  days  from 
and  after  the  date  of  the  approval  thereof,  excepting  only 
as  to  section  fifty-two,  relating  to  appropriations,  which 
shall  take  effect  upon  such  approval. 

This  act  took  effect  June  14,  1900. 

Joint  resolution  providing  for  the  annexation  of  Hawaii, 
approved  July  7,  1898,  30  Stat.,  750. 

Laws  relating  to  the  exportation  of  articles  free  of  tax,  or  with 
benefit  of  drawback,  not  applicable  to  shipment  of  articles  to 
Hawaii  on  and  after  June  14,  1900.     (T.  D.,  120.) 

Forfeiture  of  a  vessel  for  violation  of  the  internal-revenue  laws. 
(The  Kauailani,  128  Fed.  Rep.,  879.) 

PORTO    RICO.  Porto  Rico. 

AN  ACT  Temporarily  to  provide  revenues  and  a  civil  government  for 

Porto  Rico,  and  for  other  purposes.    (Act  of  Apr.  12,  1900,31  Stat., 

77.) 

[Extracts.] 

Sec.  3.  That  on  and  after  the  passage  of  this  Act  all  fro^f  on  articles 
merchandise  coming  into  the  United  States  from  Porto 
Rico  and  coming  into  Porto  Rico  from  the  United  States 
shall  be  entered  at  the  several  ports  of  entry  upon  pay- 
ment of  fifteen  per  centum  of  the  duties  which  are  re- 
quired to  be  levied,  collected,  and  paid  upon  like  articles 
of  merchandise  imported  from  foreign  countries;  and  in 


374       PROVISIONS   COMMON   TO    SEVERAL,   OBJECTS   OP   TAXATION. 

addition  thereto  upon  articles  of  merchandise  of  Porto 
Rican  manufacture  coming  into  the  United  States  and 
withdrawn  for  consumption  or  sale  upon  payment  of  a  tax 
equal  to  the  internal-revenue  tax  imposed  in  the  United 
States  upon  the  like  articles  of  merchandise  of  domestic 
manufacture;  such  tax  to  be  paid  by  internal-revenue 
stamp  or  stamps  to  be  purchased  and  provided  by  the 
Commissioner  of  Internal  Revenue  and  to  be  procured 
from  the  collector  of  internal  revenue  at  or  most  con- 
venient to  the  port  of  entry  of  said  merchandise  in  the 
United  States,  and  to  be  affixed  under  such  regulations 
as  the  Commissioner  of  Internal  Revenue,  with  the 
approval  of  the  Secretary  of  the  Treasury,  shall  prescribe. 
***** 
intemai-re ve-  sEC.  14.  That  the  statutory  laws  of  the  United  States 
pHcawT5 '  ap"not  locally  inapplicable,  except  as  hereinbefore  or  herein- 
after otherwise  provided,  shall  have  the  same  force  and 
effect  in  Porto  Rico  as  in  the  United  States,  except  the 
internal-revenue  laws,  which,  in  view  of  the  provisions  of 
section  three,  shall  not  have  force  and  effect  in  Porto 
Rico. 

Sec.  41.  That  this  Act  shall  take  effect  and  be  in  force 
from  and  after  the  first  day  of  May,  nineteen  hundred. 

The  organic  act  of  Porto  Rico,  called  "The  Foraker  Act." 
(Circular  No.  59,  May  3, 1900;  T.  D.,  22198.) 
'  War  with  Spain  declared  (Act  of  Apr.  25,  1898;  30  Stat.,  364.) 

Treaty  of  Paris  ceding  Porto  Rico  to  the  United  States  ratified 
and  proclaimed  April  11,  1899.  Circular  No.  57;  (T.  D.  2100G; 
T.  D.  23501). 

The  Act  of  April  12,  1900,  called  "The  Foraker  Act"  consti- 
tutional.    (Downes  v.  Bidwell,  182  U.  S.,  244.) 

Abolition  of  duties.  Proclamation  of  the  President  under 
section  3.     (July  25,  1901;  T.  D.  23202.) 

Circular  No.  606  relative  to  collection  of  internal-revenue  tax 
in  Porto  Rico  (July  26,  1901;  T.  D.  No.  387;  Cir.  No.  607;  T.D. 
407,  Aug.  22,  1901). 

Collection  of  internal-revenue  tax  upon  articles  of  merchandise 
coming  from  Porto  Rico.    (Cir.  No.  693,  T.  D.  1130,  Mar.  1, 1907.) 

Importation  of  Porto  Rican  products  (24  Op.  Atty.  Gen. 
55,612). 

Since  April  11, 1899,  Porto  Rico  has  been  de  facto  and  de  jure 
American  territory.  (Ponce  v.  Roman  Cath.  Church,  210  U.  S., 
296.) 

AN  ACT  To  provide  means  for  the  sale  of  internal-revenue  stamps  in 
the  island  of  Porto  Rico,  approved  June  29,  1906  (34  Stat.,  620.) 

Deputy  coiieo  That  all  United  States  internal-revenue  taxes  now 
imposed  by  law  on  articles  of  Porto  Rican  manufacture 
coming  into  the  United  States  for  consumption  or  sale 
may  hereafter  be  paid  by  affixing  to  such  articles  before 
shipment  thereof  a  proper  United  States  internal-revenue 
stamp  denoting  such  payment,  and  for  the  purpose  of 
carrying  into  effect  the  provisions  of  this  Act  the  Secre- 
tary of  the  Treasury  is  authorized  to  grant  to  such  col- 
lector of  internal  revenue  as  may  be  recommended  by  the 
Commissioner  of  Internal  Revenue,  and  approved  by  the 
Secretary,  an  allowance  for  the  salary  and  expenses  of  a 


tor  in  Porto  Rico. 


PROVISIONS  COMMON    TO   SEVERAL,  OBJECTS    OF    TAXATION.       375 

deputy-collector  of  internal  revenue,  to  be  stationed  at 
San  Juan,  Porto  Rico,  and  the  appointment  of  this 
deputy  to  be  approved  by  the  Secretary. 

The  collector  will  place  in  the  hands  of  such  deputy  all  stamps, 
stamps  necessary  for  the  payment  of  the  proper  tax  on 
articles  produced  in  Porto  Rico  and  shipped  to  the 
United  States,  and  the  said  deputy,  upon  proper  pay- 
ment made  for  said  stamps,  shall  issue  them  to  manu- 
facturers in  Porto  Rico.  All  such  stamps  so  issued  or 
transferred  to  said  deputy  collector  shall  be  charged  to  the 
collector  and  be  accounted  for  by  him  as  in  the  case  of 
other  tax-paid  stamps. 

The  deputy  collector  assigned  to  this  duty  shall  perform  le^rputy  c  ° ' ' 
such  other  work  in  connection  with  the  inspection  and 
stamping  of  such  articles,  and  shall  make  such  returns    Returns. 
as  the  Commissioner  of  Internal  Revenue  may,  by  regu- 
lations approved  by  the  Secretary  of  the  Treasury,  direct, 
and  all  provisions  of  existing  law  relative  to  the  appoint- 
ment, duties,  and  compensation  of  deputy  collectors  of    compensation. 
internal  revenue,  including  office  rent  and  other  necessary 
expenses,  shall,  so  far  as  applicable,  apply  to  the  deputy 
collector  of  internal  revenue  assigned  to  dutyunder  the 
provisions  of  this  Act. 

Sec.  2.  That  before  entering  upon  the  duties  of  his / Bond- 
office  such  deputy  collector  shall  execute  a  bond,  payable 
to  the  collector  of  internal  revenue  appointing!  him,, in 
such  amount  and  with  such  sureties  as  he  may  determined 

Sale  of  internal-revenue  stamps  in  Porto  Rico  (Cir.'  No.-  679, 
July  25,  1906;  T.  D.  1031). 

Cigars  of  Porto  Rican  manufacture  brought  to  the  United 
States  are  subject  to  internal-revenue  tax  and  must  have  affixed 
thereto  the  same  stamps  as  required  for  domestic  cigars.  (Dept. 
circulars:  54,  Apr.  25,  1900;  56,  Apr.  25,  1900;  81,  July  26,  1901: 
85,  Aug.  23,  1901.) 

"An  Act  to  impose  a  tax  on  alcoholic  compounds  coming  from 
Porto  Rico,  and  for  other  purposes,"  approved  February  4,  1909 
(Sec.  [3251b.l  p.  152).    Circular  No.  734;  T.  D.  1462. 

Words  "alcoholic  compounds"  to  be  omitted  from  tax-paid 
stamps  for  alcohol  and  other  uncompounded  spirits  brought 
from  Porto  Rico.     (T.  D.  1481.) 

PHILIPPINE   ISLANDS. 

AN  ACT  Temporarily  to  provide  revenue  for  the  Philippine  Islands, 
and  for  other  purposes.     Approved  March  8,  1902  (32  Stat.,  54). 

[Extract.] 

Sec  6.  That  all*  articles  manufactured  in  bonded  shipments  to 
manufacturing  warehouses  in  whole  or  in  part  of  imported  Lnds. '  PP 
materials,  or  of  materials  subject  to  internal-revenue  tax 
and  intended  for  shipment  from  the  United  States  to  the 
Philippine  Islands,  shall,  when  so  shipped,  under  such 
regulations  as  the  Secretary  of  the  Treasury  may  pre- 
scribe, be  exempt  from  internal-revenue  tax,  and  shall 
not  be  charged  with  duty  except  the  duty  levied  under 
this  Act  upon  imports  into  the  Philippine  Islands. 


376       PROVISIONS   COMMON    TO    SEVERAL   OBJECTS   OF   TAXATION. 


Drawback. 


That  all  articles  subject  under  the  laws  of  the  United 
States  to  internal-revenue  tax,  or  on  which  the  internal- 
revenue  tax  has  been  paid,  and  which  may  under  existing 
laws  and  regulations  be  exported  to  a  foreign  country 
without  the  payment  of  such  tax,  or  with  benefit  of  draw- 
back, as  the  case  may  be,  may  also  be  shipped  to  the 
Philippine  Islands  with  like  privilege,  under  such  regula- 
tions and  the  filing  of  such  bonds,  bills  of  lading,  and 
other  security  as  the  Commissioner  of  Internal  Revenue 
may,  with  the  approval  of  the  Secretary  of  the  Treasury, 
Refund  of  tax.  prescribe.  And  all  taxes  paid  upon  such  articles  shipped 
to  the  Philippine  Islands  since  November  fifteenth,  nine- 
teen hundred  and  one,  under  the  decision  of  the  Secretary 
of  the  Treasury  of  that  date,  shall  be  refunded  to  the 
parties  who  have  paid  the  same,  under  such  rules  and 
regulations  as  the  Secretary  of  the  Treasury  may  pre- 
scribe, and  a  sum  sufficient  to  make  such  payment  is 
hereby  appropriated,  out  of  any  money  in  the  Treasury 
not  otherwise  appropriated. 

That  where  materials  on  which  duties  have  been  paid 
are  used  in  the  manufacture  of  articles  manufactured  or 
produced  in  the  United  States,  there  shall  be  allowed  on 
the  shipment  of  said  articles  to  the  Philippine  Archi- 
pelago a  drawback  equal  in  amount  to  the  duties  paid 
on  the  materials  used,  less  one  per  centum  of  such  duties, 
under  such  rules  and  regulations  as  the  Secretary  of  the 
Treasury  may  prescribe. 


Drawback. 


T.  D.  484;  T.  D.  491.  T.  D.  No.  23586.  Shipments  to  the 
Philippine  Islands  of  articles  subject  to  internal-revenue  tax. 
(Regulations  No.  29,  rev.) 

Rules  and  regulations  for  the  refunding  of  internal-revenue 
taxes  paid  upon  articles  shipped  to  the  Philippine  Islands  since 
November  15, 1901     (Cir.  No.  626,  July  3, 1902;  T.  D.  542.) 

Treaty  of  peace  ratified  and  proclaimed  April  11,  1899. 
(T.  D.  No.  21006;  Cir.  No.  57;  T.  D.  No.  23501.) 

Emil  J.  Pepke  v.  United  States.  183  U.  S.  176.  Case  known 
as  the  ' '  Fourteen  Diamond  Rings  Case, ' '  involving  the  constitu- 
tionality of  the  imposition  of  customs  duties  upon  merchandise 
brought  into  the  United  States  from  the  Philippines  after  the 
treaty  of  peace  took  effect.  Philippines  not  a  foreign  country 
after  its  cession.  The  effect  of  this  decision  was  to  give  the 
Philippines  the  same  status  that  Porto  Rico  had  before  the 
Foraker  Act  was  passed. 

The  President  authorized  to  establish  temporary  civil  govern- 
ment in  the  Philippine  Islands.  (Act  of  March  2,  1901;  31 
Stat.,  910.) 

An  act  temporarily  to  provide  for  the  administration  of  the 
affairs  of  civil  government  in  the  Philippine  Islands,  and  for 
other  purposes.     (Act  of  July  1,  1902;  32  Stat.,  691). 

All  articles  the  growth  and  product  of  the  Philippine  Islands 
coming  directly  from  said  islands  to  the  United  States  or  any  of 
its  possessions  for  use  and  consumption  therein,  shall  be  exempt 
from  any  export  duties  imposed  in  the  Philippine  Islands.  (Act 
to  raise  revenue  for  the  Philippine  Islands  and  for  other  purposes. 
Act  of  Aug.  5,  1909;  36  Stat.,  174.) 

Funds  derived  from  the  sale  of  internal-revenue  stamps  in  the 
Philippine  Islands  belong  to  the  Philippine  government  under 
the  provisions  of  section  4  of  the  act  of  March  8,  1902.  (32  Stat., 
54.)    (28  Op.  Atty.  Gen.,  70.) 


PROVISIONS  COMMON  TO  SEVERAL  OBJECTS  OF  TAXATION.       377 

BONDS    FOR    EXPORT    TO    THE    PHILIPPINE    ISLANDS. 

AN  ACT  To  relieve  obligors  on  bonds  given  to  the  United  States  upon 
the  exportation  to  the  Philippine  Islands  prior  to  November  20,  1901, 
of  articles  subject  to  internal-revenue  tax,  approved  April  28,  1904 
(33  Stat.,  574). 

That  all  bonds  given  to  the  United  States  prior  to  b(Sadnscellatlon  of 
November  twentieth,  nineteen  hundred  and  one,  upon  the 
transportation  and  shipment  to  the  Philippine  Islands  of 
articles  subject  under  existing  statutes  to  the  payment 
of  internal-revenue  tax,  which  are  in  form  given  for  the 
proper  exportation  of  the  article  therein  described  to  a 
foreign  country  free  of  internal-revenue  tax,  or  with  ben- 
efit of  drawback,  as  the  case  may  be,  shall  be  treated  in 
all  respects  as  if  given  for  and  upon  a  shipment  to  a  foreign 
country,  and  shall  be  canceled  upon  presentation  of  evi- 
dence of  the  shipment  to  a  port  of  the  Philippine  Islands, 
or  of  landing  at  such  port,  as  the  case  may  be,  the  same 
as  if  such  port  were  a  port  of  a  foreign  country.  The 
obligors  upon  any  of  such  bonds  shall  have  such  reason- 
able time  from  and  after  the  passage  of  this  Act  as  may  be 
prescribed  by  the  Secretary  of  the  Treasury  within  which 
to  present  the  evidence  required  by  existing  statutes  for 
the  cancellation  of  such  bonds. 

Prior  to  November  20.  1901.  for  the  purposes  of  commerce,  the 
Philippine  Islands  were  treated  as  foreign  territory.  Certain 
articles  liable  to  pay  internal-revenue  tax  were  allowed  to  be 
shipx>ed  in  bond,  to  be  consumed  in  the  Islands.  This  act  pro- 
vided that  these  bonds  should  be  canceled  upon  presentation  of 
evidence  of  the  shipment  or  landing  of  such  articles  in  any  ports 
in  the  Philippine  Islands. 

ARTICLES     COMING     INTO     THE    UNITED     STATES     FROM    THE     PHILIPPINE 

ISLANDS. 

[Extract  from  an  act  to  provide  revenue,  equalize  duties,  and  encourage  the  industries 
of  the  United  States,  and  for  other  purposes,  approved  August  5, 1909  (36  Stat., 
11,83).] 

Sec.  5.  [Act  of  Aug.  5,  1909  (36  Stat,  83).}  That  there  P5?!i5Binf& 
shall  be  levied,  collected,  and  paid  upon  all  articles  com-  lands  subject  to 
ing  into  the  United  States  from  the  Philippine  Islands  the regular  duties- 
rates  of  duty  which  are  required  to  be  levied,  collected, 
and  paid  upon  like  articles  imported  from  foreign  coun- 
tries : 

Provided,  That,  except  as  otherwise  hereinafter  pro-  UCteaexIepte<irod~ 
vided,  all  articles,  the  growth  or  product  of  or  manufac- 
tured in  the  Philippine  Islands  from  materials  the  growth 
or  product  of  the  Philippine  Islands  or  of  the  United 
States,  or  of  both,  or  which  do  not  contain  foreign  mate- 
rials to  the  vlaue  of  more  than  twenty  per  centum  of  their 
total  value,  upon  which  no  drawback  of  customs  duties 
has  been  allowed  therein,  coming  into  the  United  States 
from  the  Philippine  Islands  shall  hereafter  be  admitted 
free  of  duty,  except  rice,  and  except,  in  any  fiscal  year, 
sugar  in  excess  of  three  hundred  thousand  gross  tons, 
wrapper  tobacco  and  filler  tobacco  when  mixed  or  packed 


378       PROVISIONS    COMMON   TO   SEVERAL   OBJECTS   OF   TAXATION. 

with  more  than  fifteen  per  centum  of  wrapper  tobacco  in 
excess  of  three  hundred  thousand  pounds,  filler  tobacco  in 
excess  of  one  million  pounds,  and  cigars  in  excess  of  one 
hundred  and  fifty  million  cigars,  which  quantities  shall  be 
ascertained  by  the  Secretary  of  the  Treasury  under  such 
rules  and  regulations  as  he  shall  prescribe: 
ga?Uandintobacco     And  provided  further,  That  sugar,  refined  or  unrefined, 
oThPerrcountries0m  an<^  tobacco,  manufactured  or  unmanufactured,  imported 
into  the  Philippine  Islands  from  foreign  countries,  shall 
be  dutiable  at  rates  of  import  duty  therein  not  less  than 
the  rates  of  import  duty  imposed  upon  sugar  and  tobacco 
in  like  forms  when  imported  into  the  United  States : 
snmufesugar  pro°-     And  provided  further ,  That,  under  rules  and  regulations 
ducers.  to  be  prescribed  by  the  Secretary  of  the  Treasury,  prefer- 

ence in  the  right  of  free  entry  of  sugar  to  be  imported  into 
the  United  States  from  the  Philippine  Islands,  as  pro- 
vided herein,  shall  be  given,  first,  to  the  producers  of  less 
than  five  hundred  gross  tons  in  any  fiscal  year,  then  to 
producers  of  the  lowest  output  in  excess  of  five  hundred 
gross  tons  in  any  fiscal  year: 
toUbeS'  admitted  Provided,  however,  That  in  consideration  of  the  exemp- 
free-  tions  aforesaid,  all  articles,  the  growth,  product,  or  manu- 

facture of  the  United  States,  upon  which  no  drawback  of 
customs  duties  has  been  allowed  therein,  shall  be  admitted 
to  the  Philippine  Islands  from  the  United  States  free  of 
duty: 

And  provided  further,  That  the  free  admission,  herein 
provided,  of  such  articles,  the  growth,  product,  or  manu- 
facture of  the  United  States,  into  the  Philippine  Islands, 
or  of  the  growth,  product,  or  manufacture,  as  hereinbe- 
fore defined,  of  the  Philippine  Islands  into  the  United 
States,  shall  be  conditioned  upon  the  direct  shipment 
thereof  from  the  country  of  origin  to  the  country  of 
destination : 

Provided,  That  direct  shipment  shall  include  shipments 
in  bond  through  foreign  territory  contiguous  to  the 
United  States: 
agedrttatransitm*  Provided,  however,  That  if  such  articles  become  un- 
packed while  en  route  by  accident,  wreck,  or  other  casual- 
ty, or  so  damaged  as  to  necessitate  their  repacking,  the 
same  shall  be  admitted  free  of  duty  upon  satisfactory 
proof  that  the  unpacking  occurred  through  accident  or 
necessity  and  that  the  merchandise  involved  is  the  identi- 
cal merchandise  originally  shipped  from  the  United  States 
or  the  Philippine  Islands,  as  the  case  may  be,  and  that 
its  condition  has  not  been  changed  except  for  such  damage 
as  may  have  been  sustained : 
s  toteleLeffroU'  ^  Provided  further,  That  all  articles,  the  growth,  prod- 
export  duties,  uct,  or  manufacture,  as  hereinbefore  denned,  of  the 
Philippine  Islands,  admitted  into  the  ports  of  the  United 
States  free  of  duty  under  the  provisions  of  this  section 
and  shipped  as  hereinbefore  provided  from  said  islands 
to  the  United  States  for  use  and  consumption  therein, 


PROVISIONS   COMMON    TO   SEVERAL   OBJECTS    OF    TAXATION.       379 

shall  be  hereafter  exempt  from  the  payment  of  any  export 
duties  imposed  in  the  Philippine  Islands: 

And  -provided  further,  That  there  shall  be  levied,  col-  in£rnaie-?e  venue 
lected,   and  paid,  in  the  United  States,   upon   articles,  tax. 
goods,  wares,   or  merchandise  coming  into  the  United 
States  from  the  Philippine  Islands,  a  tax  equal  to  the 
internal-revenue  tax  imposed  in  the  United  States  upon 
the  like  articles,  goods,  wares,  or  merchandise  of  domestic 
manufacture;  such   tax   to  be  paid  by  internal-revenue 
stamp  or  stamps,  to  be  provided  by  the  Commissioner  of 
Internal  Revenue,  and  to  be  affixed  in  such  manner  and 
under  such  regulations  as  he,  with  the  approval  of  the 
Secretary  of  the  Treasury,  shall  prescribe;  and  such  arti-  pErx<:mpt    from 
cles,  goods,  wares,  or   merchandise,  shipped    from  said 
islands  to  the  United  States,  shall  be  exempt  from  the 
payment  of   any  tax  imposed   by  the  internal-revenue 
laws  of  the  Philippine  Islands: 

And  provided  further,  That  there  shall  be  levied,  col-    Int*™al~0rne  ^' 
lected,  and  paid  in  the  Philippine  Islands,  upon  articles,  ports  from  u.s. 
goods,  wares,  or  merchandise  going  into  the  Philippine 
Islands  from  the  United  States,  a  tax  equal  to  the  internal- 
revenue  tax  imposed  in  the  Philippine  Islands  upon  the 
like  articles,  goods,  wares,  or  merchandise  of  Philippine 
Islands  manufacture;  such  tax  to  be  paid  by  internal- 
revenue  stamps  or  otherwise,  as  provided  by  the  laws  in 
the  Philippine  Islands,  and  such  articles,  goods,  wares,  or 
merchandise  going  into  the  Philippine  Islands  from  the 
United  States  shall  be  exempt  from  the  payment  of  any    Exempt    from 
tax  imposed  by  the  internal-revenue  laws  of  the  United  u' s' tax' 
States: 

And  provided  further,  That,  in  addition  to  the  customs    totH£al0rne  \f£ 
taxes  imposed  in  the  Philippine  Islands,  there  shall  be  ports,  other  than 
levied,  collected,  and  paid  therein  upon  articles,  goods, from  u" s' 
wares,    or    merchandise,    imported    into    the    Philippine 
Islands  from  countries  other  than  the  United  States,  the 
internal-revenue  tax  imposed  by  the  Philippine  govern- 
ment on  like  articles  manufactured  and  consumed  in  the 
Philippine  Islands  or  shipped  thereto,  for  consumption 
therein,  from  the  United  States: 

And  provided  further,  That  from  and  after  the  passage    internal  rev e- 
of  this  Act  all  internal  revenues  collected  in  or  for  account  intoSinsuiar  treas- 
of  the  Philippine  Islands  shall  accrue  intact  to  the  general ury- 
government  thereof  and  be  paid  into  the  Insular  treas- 
ury, and  shall  only  be  allotted  and  paid  out  therefrom  in 
accordance  with  future  acts  of  the  Philippine  legislature, 
subject,  however,  to  section  seven  of  the  Act  of  Congress 
approved  July  first,  nineteen  hundred  and  two,  entitled 
"An  Act  temporarily  to  provide  for  the  administration 
of  the  affairs  of  civil  government  in  the  Philippine  Islands, 
and  for  other  purposes:" 

And  provided  f mother,  That,  until  action  by  the  Philip-  P .^"commission! 
pine  legislature,  approved  by  Congress,  internal  revenues 
paid  into  the  Insular  treasury,  as  hereinbefore  provided, 


380       PROVISIONS  COMMON   TO   SEVERAL  OBJECTS  OP   TAXATION. 

shall  be  allotted  and  paid  out  by  the  Philippine  Commis- 
sion. 

Regulations  concerning  articles  subject  to  internal-revenue 
tax  coming  into  the  United  States  from  the  Philippine  Islands. 
No.  8,  revised  July  1,  1910,  p.  68.  (T.  D.  1531,  modified  by 
T.  D.  1567.) 

Regulations  under  section  5,  act  of  August  5,  1909.  Circular 
No.  37,  August  10,  1909.     (T.  D.  29944.) 

Shipments  from  the  Philippine  Islands  of  sugar,  tobacco,  and 
cigars.     Dept.  Cir.  No.  57,  Nov.  1,  1909. 

Articles  shipped  from  the  Philippine  Islands.     (T.  D.  1569.) 

Shipments  to  and  from  Philippine  Islands.  Circular  No.  39, 
July  1,  1910.     (T.  D.  30744.) 


APPENDIX. 


CONTAINING  LAWS  OF  A  GENERAL  NATURE  AND  MISCELLANEOUS  PRO- 
VISIONS APPLICABLE  TO  THE  ADMINISTRATION  OF  THE 
INTERNAL-REVENUE  LAWS. 

Chapter  1  (p.  383). 

Suits  and  prosecutions — Jurisdiction — Practice — Evidence — Liens — Limitations — United 
States  attorneys — Duties  as  to  prosecutions — Reports — Clerics  of  courts,  etc. 


Jurisdiction  of  district  courts. 

Jurisdiction  of  circuit  courts. 

Suits  for  penalties,  forfeitures,  and  taxes. 

Removal  of  suits  against  officers  from 
State  to  United  States  circuit  courts. 

Arrests. 

Competency  of  witnesses.     State  laws. 

Production  of  books,  papers,  etc.,  in  suits 
other  than  criminal. 

Certified  copies  of  papers  admissible  as 
evidence. 

Costs  in  internal-revenue  suits  upon  in- 
formation from  other  than  a  collector, 
etc. 

Costs,  when  paid  by  defendant. 

Laws  of  the  States,  rules  of  decision,  etc. 

Proceedings  on  execution.     State  laws. 

Act  to  regulate  liens  of  judgments  and 
decrees  of  United  States  courts. 


Interest  on  judgments,  etc. 

Writs  of  error  and  appeals. 

Circuit  courts  of  appeals. 

Certificate  of  probable  cause. 

Property  taken  under  revenue  laws  irre- 
pleviable. 

Statute  of  limitations. 

Compromises  of  claims  and  of  cases  after 
judgment.     Pardons. 

Employment  of  attorneys  or  counsel. 

Duty  of  district  attorneys  to  prosecute 
delinquents  and  to  defend  officers. 

Reports  of  district  attorneys  and  mar- 
shals. 

Warrants  of  arrest  and  prosecutions. 

Clerks  of  courts,  reports  of,  etc. 


Chapter  2  (p.  404). 

Duties  of  officers  charged  with  receiving  or  disbursing  public  moneys — Penalties  for  embezzle- 
ments— Proceedings  against  delinquent  officers,  etc. 


Moneys  to  be  deposited  without  deduc- 
tion. 

Duty  of  disbursing  officers. 

Persons  having  moneys  of  United  States 
must  pay  the  same  to  Treasurer,  etc. 

Accounts  to  be  rendered. 

Distinct  accounts  required  according  to 
appropriation. 

Suits  to  recover  money  from  officers  regu- 
lated. 

Distress  warrant. 

Failure  of  disbursing  officer  to  account; 
duty  thereupon  of  Auditor  and  Solici- 
tor of  Treasury. 

Duties  of  officers  as  custodians  of  public 
moneys. 

Embezzlement;  penalty  for  requiring  re- 
ceipt for  larger  sum  than  that  actually 
paid. 

Embezzlement;  penalty  for  disbursing  of- 
ficer unlawfully  depositing,  converting, 
loaning,  or  transferring  public  money. 

Embezzlement;  penalty  for  custodians  of 
public  money  failing  to  safely  keep,  etc. 

Embezzlement;  penalty  for  failure  to  ren- 
der accounts. 


Embezzlement;  penalty  for  failure  to  de- 
posit as  required. 

Record  evidence  of  embezzlement. 

Refusal  to  pay  any  draft,  etc.,  prima  facie 
evidence  of  embezzlement. 

Evidence  of  conversion. 

Unlawfully  receiving  public  money. 

Embezzlement  by  internal-revenue  offi- 
cers and  assistants  where  offense  is  not 
otherwise  punishable. 

Penalty  for  clerks  and  officers  of  court 
failing  to  deposit  moneys. 

Penalty  for  receiving  moneys  belonging 
to  the  registry  of  the  court. 

Penalty  for  failure  to  make  reports. 

Disbursing  officer  forbidden  to  trade  in 
public  funds. 

Collecting  officers  forbidden  to  trade  in 
public  property. 

Transcripts  from  books,  etc.,  of  the  Treas- 
ury to  be  evidence  in  suits  against  de- 
linquents. 

Delinquents  for  public  money;  judgment 
at  return  term,  unless,  etc. 


381 


382 


APPENDIX. 


Chapter  3  (p.414). 

Penalties  for  perjury — Bribery— Resisting  officers — Conspiracy — Falsely  assuming  to  be 

an  officer,  and  other  offenses. 


Penalty  for  perjury. 

Penalty  for  resisting  officer  in  serving 
process. 

Penalty  for  rescuing  prisoners. 

Penalty  for  rescuing  or  attempting  to  res- 
cue property  taken  or  detained  by  rev- 
enue officer. 

Penalty  for  extortion  by  internal-revenue 
informers. 

Penalty  for  conspiracy  to  prevent  persons 
from  accepting  office. 

Penalty  for  falsely  assuming  to  be  a  Gov- 
ernment officer. 

Penalty  for  bribery. 

Penalty  for  conspiracy. 

Penalty  for  destroying  or  carrying  away 
without  authority  public  records,  pa- 
pers, etc. 


Penalty  for  larceny  or  robbery  of  personal 
property  of  the  United  States. 

Penalty  for  embezzling  or  stealing  public 
property  or  receiving  and  retaining  in 
possession  stolen  property. 

Penalty  for  forging,  altering,  counterfeit- 
ing, etc.,  bid,  bond,  public  record,  etc. 

Penalty  for  counterfeiting  obligations  and 
other  securities  of  the  United  States, 
including  stamps. 

Penalty  for  making  false  or  fraudulent 
claims. 

Provisions  of  the  criminal  code  relative 
to  distilled  spirits. 


Chapter  1  (p.  422). 


Claims — Set-offs— Appropriations,  etc. 


Claims. 

No  payment  to  person  in  arrears  to  the 

United  States. 
Set-offs  and  credits. 
Priority  of   United   States  in   insolvent 

estates. 
Permanent  annual  appropriations. 
No  expenditures  beyond  appropriations. 
Heads  of  Departments  prohibited  from 

accepting    voluntary    service    for    the 

Government. 


Unauthorized  contracts  prohibited. 

Unexpended  balances  of  appropriations. 

Assignment  of  claims  void,  unless,  etc. 

Attorneys  before  the  Treasury  Depart- 
ment. 

Duplicate  checks  when  original  is  lost. 

Letters,  packages,  etc.,  on  Government 
business  sent  free;  penalty  envelopes. 

Government  to  have  priority  in  the  trans- 
mission of  telegrams. 

Disposition  of  useless  papers. 


Chapter  5  (p.  431). 

Officers,  clerics,  and  employees — Extra  services — Perquisites — Prohibition  as  to  business — ' 

Political  contributions,  etc. 


Honorably  discharged  soldiers  or  sailors 
disabled  in  the  service  preferred  for 
appointment. 

Preference  given  to  soldiers  and  soldiers' 
widows  in  reducing  force. 

Employees  to  be  paid  from  special  appro- 
priations only. 

Holidays. 

Double  salaries,  compensation  for  extra 

I     services,  perquisites,  etc. 

Expenses  of  clerks,  officers,  etc.,  sent  away 

!     as  witnesses. 

No  mileage  beyond  traveling  expenses 
allowed. 


<  Vrtain  business  forbidden  to  clerks  in 

the  Treasury  Department. 
Penalty  for  officers  and  clerks  receiving 

compensation    in    matters    before    the 

department. 
Officers  interested  in  claims;  penalty. 
Persons  formerly  in  the  departments  not 

to  prosecute  claims  in  them  within  two 

years. 
Restrictions  on  payment  for  services. 
Presents  to  superior  officers  prohibited. 
Political  contributions,   immunity  from 

official  proscription. 


appendix.  383 

Chapter  1. 

Suits  and  prosecutions — Jurisdiction — Practice — Evidence — Liens — 
Limitations — Compromises  and  remissions — United  States  attor- 
neys— Duties  as  to  prosecutions — Commissioners — Clerics  of  courts — 
Reports,  etc. 

Note. — "The  Judicial  Code,"  an  Act  to  codify,  revise  and  amend 
the  laws  relating  to  the  judiciary,  approved  March  3,  1911  (36  Stat. 
10S7)  goes  into  effect  January  1,  1012.  It  abolishes  circuit  courts 
(Sec.  289)  and  imposes  the  powers  and  duties  upon  district  courts. 

Several  of  the  sections  in  this  chapter  are  superseded  as  such  and 
reproduced  as  noted  under  the  appropriate  sections.  The  provi- 
sions, so  far  as  they  are  substantially  the  same  as  existing  statutes, 
are  construed  as  continuations  thereof  and  not  as  new  enactments. 
(Sec.  294). 

Jurisdiction  of  district  courts. 

Sec.  563.  The  district  courts  shall  have  jurisdiction  as  follows: 
First.  Of  all  crimes  and  offenses  cognizable  under  the  authority  of 
the  United  States,  committed  within  their  respective  districts,  or 
upon  the  high  seas,  the  punishment  of  which  is  not  capital,  except  in 
the  cases  mentioned  in  section  fifty-four  hundred  and  twelve,  Title 
"  Crimes." 

rj»  «J»  »J*  *T»  *J»  »J» 

Third.  Of  all  suits  for  penalties  and  forfeitures  incurred  under  any 
law  of  the  United  States. 

*^*  %^  *i*  ^*  *i»  *j- 

vj*  *x*  ^^  T*  ^p  ^* 

Fifth.  Of  all  suits  in  equity  to  enforce  the  lien  of  the  United  States 
upon  any  real  estate  for  any  internal-revenue  tax,  or  to  subject  to  the 
payment  of  any  such  tax  any  real  estate  owned  by  the  delinquent,  or 
in  which  he  has  any  right,  title,  or  interest.     (Sec.  3207,  p.  105.) 

United  States  v.  Shaw  (39  Fed.  Rep.,  433). 

*l*  »j»  "X*  *T»  *T*  *F 

Eighth.  *  *  *  And  of  all  seizures  on  land  and  on  waters  not 
within  admiralty  and  maritime  jurisdiction.     *     *     * 

Coffey  v.  United  States  (116  U.  S.,  427;  117  Id.,  233). 
See  Sec.  24  of  "The  Judicial  Code,"  Act  of  March  3,  1911. 

Jurisdiction  of  circuit  courts. 

Sec.  629.  The  circuit  courts  shall  have  original  jurisdiction  as 
follows : 

Fourth.  *  *  *  Of  all  causes  arising  under  any  law  providing 
internal  revenue.     *     *     * 

This  clause  was  not  repealed  by  the  act  of  March  3,  1875  (18  Stat.,  470),  or  by 
the  act  of  March  3,  1887  (24  Stat.,  552),  defining  the  jurisdiction  of  the  circuit 
courts,  and  these  courts  have  jurisdiction  in  suits  arising  under  the  revenue 
laws,  although  the  amount  in  dispute  is  less  than  $2,000.  (Ames  v.  Hager,  36 
Fed.  Rep.,  129;  Commissioners  v.  Buckner,  48  Fed.  Rep.,  533.) 

Spreckels  Sugar  Refining  Co.  v.  McClain  (192  U.  S.,  397;  T.  D.  760). 


384  APPENDIX. 

Twentieth.  Exclusive  cognizance  of  all  crimes  and  offenses  cogni- 
zable under  the  authority  of  the  United  States,  except  where  it  is  or 
may  be  otherwise  provided  by  law,  and  concurrent  jurisdiction  with 
the  district  courts  of  crimes  and  offenses  cognizable  therein. 

Circuit  courts  abolished  after  January  1,  1912.  (Sec.  289,  Act  of  March 
3,  1911.) 
The  original  judiciary  act  of  September  24,  1789,  remained  in  force  with 
•  scarcely  any  modification  until  the  act  of  March  3,  1875,  which  greatly  enlarged 
the  jurisdiction  of  the  circuit'courts  (amended  by  the  act  of  March  3,  1887; 
corrected  by  the  act  of  August  13, 1888,  passed  to  cure  defects  in  the  enrollment 
of  the  act  of  March  3,  1887). 

AN  ACT  To  correct  the  enrollment  of  an  act  approved  March  third,  eighteen  hundred 
and  eighty-seven,  entitled  "An  act  to  amend  sections  one,  two,  three,  and  ten  of  an 
act  to  determine  the  jurisdiction  of  the  circuit  courts  of  the  United  States,  and  to 
regulate  the  removal  of  causes  from  the  State  courts,  and  for  other  purposes,  ap- 
proved March  third,  eighteen  hundred  and  seventy-five.  (Act  of  August  13,  1888, 
25  Stat,,  433.) 

Sec.  1.  That  the  circuit  courts  of  the  United  States  shall  have 
original  cognizance,  concurrent  with  the  courts  of  the  several  States, 
of  all  suits  of  a  civil  nature,  at  common  law  or  in  equity,  where  the 
matter  in  dispute  exceeds,  exclusive  of  interest  and  costs,  the  sum  or 
value  of  two  thousand  dollars,  and  arising  under  the  Constitution  or 
laws  of  the  United  States,  or  treaties  made,  or  which  shall  be  made, 
under  their  authority,  or  in  which  controversy  the  United  States  are 
plaintiffs  or  petitioners,     *     *     * 

United  States  circuit  courts  have  original  jurisdiction  when  the  right  of  either 
party  depends  on  the  validity  of  an  act  of  Congress.  (Patton  v.  Brady,  184 
U.  S.,  611.) 

Exclusive  jurisdiction  of  courts  of  United  States. 

Sec.  711.  The  jurisdiction  vested  in  the  courts  of  the  United  States 
in  the  cases  and  proceedings  hereinafter  mentioned  shall  be  exclusive 
of  the  courts  of  the  several  States: 

First.  Of  all  crimes  and  offenses  cognizable  under  the  authority  of 
the  United  States. 

Second.  Of  all  suits  for  penalties  and  forfeitures  incurred  under  the 
laws  of  the  United  States. 

Third.  Of  all  civil  causes  of  admiralty  and  maritime  jurisdiction; 
saving  to  suitors,  in  all  cases,  the  right  of  a  common-law  remedy, 
where  the  common  law  is  competent  to  give  it. 

Fourth.  Of  all  seizures  under  the  laws  of  the  United  States  on  land 
or  on  waters  not  within  admiralty  and  maritime  jurisdiction. 
*  *  *  *      .  *  *  * 

Reenacted  Sec.  256  of  "The  Judicial  Code,"  Act  March  3,  1911. 

The  Supreme  Court  is  the  only  court  of  the  United  States  which  derives  any 
part  of  its  power  directly  from  the  Constitution.  The  circuit  and  district  courts 
of  the  United  States  are,  by  authority  of  the  Constitution,  the  creatures  of  the 
National  Legislature,  having  such  jurisdiction,  and  only  such,  as  Congress  has 
been  pleased  to  confer  upon  them,  and  having  no  common-law  jurisdiction, 
though  drawing  upon  the  common  law  for  modes  of  procedure  and  practice 
when  necessary  to  cany  into  effect  the  jurisdiction  given  by  statute.  (United 
States  v.  CultusJoe,  15  Int.  Rev.  Rec,  58.) 

In  general  a  crime  against  the  laws  of  the  United  States  is  not  cognizable  in 
a  State  court.     (Ex  parte  Houghton,  27  Int.  Rev.  Rec,  273.) 

The  same  offense  may  be  made  punishable  both  under  the  laws  of  a  State 
and  of  the  United  Stales;  and  over  such  offenses  the  State  and  Federal  courts 
have  concurrent  jurisdiction.  (United  States  v.  Wells,  15  Int.  Rev.  Rec,  56; 
Fed.  Cas.  No.  16665.) 


APPENDIX.  385 

The  same  act  may  constitute  an  offense  against  the  United  States  and  against 
a  State,  subjecting  the  guilty  party  to  punishment  under  the  laws  of  each 
government;  and  may  embrace  two  or  more  offenses.  (Cross  v.  North  Carolina, 
132  U.  S.,  131,  and  cases  cited.  And  see  Teal  v.  Felton,  12  How.,  284,  292; 
Crossley  v.  California,  168  U.  S.,  641.) 

A  suit  against  an  internal-revenue  collector  to  recover  taxes  alleged  to  have 
been  illegally  collected  is  cognizable  in  the  United  States  circuit  court,  both 
under  section  629,  giving  that  court  jurisdiction  of  causes  arising  under  any 
law  providing  internal  revenue,  and  under  act  of  March  3,  1887,  giving  it 
jurisdiction  of  causes  arising  under  the  laws  of  the  United  States.  (Commis- 
sioners of  Sinking  Fund  of  Louisville  v.  Buckner  (1891),  circuit  court,  48  Fed. 
Rep.,  533.  See  Insurance  Co.  v.  Ritchie,  5  Wall.,  541;  City  of  Philadelphia  v. 
Collector,  5  Wall.,  570;  Hornthal  v.  Collector,  9  Wall.,  560;  Assessor  v.  Osborne, 
9  Wall.,  567.) 

Williams  v.  Reynolds  (131  U.  S.  cxi),  Cincinnati  Brewing  Co.  v.  Bettman, 
Collr.  (102  Fed.  Rep.,  16). 

A  State  court  has  no  authority  to  enjoin  the  proceedings  of  a  Federal  court. 
(Central  National  Bank,  Boston,  v.  Hazard,  49  Fed.  Rep.,  293.) 

Conflicting  State  and  Federal  jurisdiction.  (Booth  v .  St.  Louis  Fire  Engine 
Manufacturing  Co.,  40  Fed.  Rep.,  1.) 

Jurisdiction  where  a  federal  question  is  involved.  (Adams  Express  Co.  v. 
Michigan,  177  U.  S.,  404.) 

Offenses  begun  In  one  district  and  completed  In  another. 

Sec.  731.  When  any  offense  against  the  United  States  is  begun  in 
one  judicial  district  and  completed  in  another,  it  shall  be  deemed-  to 
have  been  committed  in  either,  and  may  be  dealt  with,  inquired  of, 
tried,  determined,  and  punished  in  either  district,  in  the  same  manner 
as  if  it  had  been  actually  and  wholly  committed  therein. 

Reenacted  Sec.  42  of  "The  Judicial  Code,"  Act  March  3,  1911. 

The  court  of  the  district  where  the  res  is  seized  has  jurisdiction  though  the 
violation  of  law  occurred  in  another  State.  (U.  S.  v .  396  Barrels  of  Distilled 
Spirits,  3  Int.  Rev.  Rec.  114;  Fed.  Cas.  No.  16502.) 

Suits  for  taxes,  penalties,  or  forfeitures  to  be  brought  in  the  name  of  the  United  States. 

Sec.  919.  All  suits  for  the  recovery  of  any  duties,  imposts,  or  taxes, 
or  for  the  enforcement  of  any  penalty  or  forfeiture  provided  by  any 
act  respecting  imports  or  tonnage,  or  the  registering  and  recording  or 
enrolling  and  licensing  of  vessels,  or  the  internal  revenue,  or  direct 
taxes,  and  all  suits  arising  under  the  postal  laws,  shall  be  brought  in 
the  name  of  the  United  States. 

Where  suits  for  penalties,  forfeitures,  and  taxes  are  to  be  brought. 

Sec.  732.  All  pecuniary  penalties  and  forfeitures  may  be  sued  for 
and  recovered  either  in  the  district  where  they  accrue  or  in  the  district 
where  the  offender  is  found. 

Reenacted  Sec.  43  of  "The  Judicial  Code,"  Act  March  3,  1911. 

Sec.  733.  Taxes  accruing  under  any  law  providing  internal  revenue 
may  be  sued  for  and  recovered  either  in  the  district  where  the  liability 
for  such  tax  occurs  or  in  the  district  where  the  delinquent  resides. 

Reenacted  Sec.  44  of  "The  Judicial  Code,"  Act  March  3,  1911. 

See  section  3213,  Revised  Statutes,  page  109. 

United  States  v.  New  York,  New  Haven  &  Hartford  Railroad  Co.  (10  Ben., 
144;  24  Int.  Rev.  Rec,  341).  The  Dollar  Savings  Bank  v.  United  States, 
(19  Wall.,  227;  22  Int.  Rev.  Rec,  310). 

Jurisdiction  in  case  of  actions  on  deputy  collectors'  bonds.    (Sec.  3148,  p.  63.) 

Officers  suffering  injuries  may  maintain  suits  for  damages  in  the  United 
States  circuit  court  of  the  district  where  the  party  resides  or  may  be  found. 
(Sec.  3171,  p.  83.) 

72170°— 11 25 


386  APPENDIX. 

Jury  may  be  waived  in  the  trial  of  petty  offenses.  (Shick  v.  U.  S.,  195  U.  S., 
65.) 

Residence  of  a  corporation.  (Booth  et  al.  v.  St.  Louis  Fire  Engine  Manufac- 
turing Co.,  40  Fed.  Rep.,  I.) 

Penal  offenses  created  by  the  statute,  whether  prosecuted  by  indictment  or 
information,  must  be  accurately  and  clearly  described  in  the  pleadings  for 
recovery  of  the  penalty.  (United  States  v.  Mann,  24  Int.  Rev.  Rec,  20;  95 
U.  S.,  580.) 

When  the  crime  is  a  statutory  one,  the  offense  must  be  charged  with  pre- 
cision and  certainty.     (Ledbetter  v.  United  States,  170  U.  S.,  606.) 

The  accused  must  be  apprised  by  the  indictment,  with  reasonable  certainty 
of  the  nature  of  the  accusation  against  him.     (U.  S.  v.  Simmons,  96  U.  S.,  360.) 

Persons  not  to  be  arrested  In  one  district  for  trial  in  another  in  civil  actions. 

Sec.  1.  [Act  of  Aug.  13,  1888  (25  Stat.,  433) ,  amending  act  of  Mar.  3, 
1875  (18  Stat.,  470).]  But  no  person  shall  be  arrested  in  one  district 
for  trial  in  another  in  any  civil  action  before  a  circuit  or  district  court ; 
and  no  civil  suit  shall  be  brought  before  either  of  said  courts  against 
any  person  by  any  original  process  or  proceeding  in  any  other  district 
than  that  whereof  he  is  an  inhabitant,  but  where  the  jurisdiction  is 
founded  only  on  the  fact  that  the  action  is  between  citizens  of  different 
States,  suit  shall  be  brought  only  in  the  district  of  the  residence  of 
either  the  plaintiff  or  the  defendant.     *     *     * 

See  sec.  51  of  "The  Judicial  Code,"  Act  of  March  3,  1911. 

A  corporation  may  be  indicted  for  the  acts  of  its  officers  or  employees.  (U.  S. 
v.  Baltimore  &  Ohio  R.  R.  Co.,  8  Int.  Rev.  Rec.  148;  Fed.  Cas.  No.  14509.) 

Suit  against  foreign  corporations  doing  business  in  a  State.  (Wilson  Packing 
Co.  v.  Hunter,  25  Int.  Rev.  Rec,  137.) 

Foreign  corporations,  where  to  be  sued.  (Mohr  &  Mohr  Distilling  Co.  v. 
Sundry  Insurance  Companies,  28  Int.  Rev.  Rec,  218.) 

Service  of  process  on  nonresident  defendant  on  compulsory  attendance  illegal. 
(United  States  v.  Bridgman,  26  Int.  Rev.  Rec,  139.)  Also  where  fraud  is  used 
to  induce  defendant  to  come  within  jurisdiction  of  court  (Steiger  v.  Bonn, 
26  Int.  Rev.  Rec,  365).  A  party  going  into  another  State  as  witness  exempt 
from  process  (Brooks  v.  Farwell,  26  Int.  Rev.  Rec,  355). 

Sections  737,  740  provide  for  cases  where  there  are  two  or  more  defendants 
residing  in  different  districts. 

A  criminal  prosecution  must  be  had  in  the  district  where  the  crime  or  offense 
was  committed.     (Sec.  563,  R.  S.) 

In  conspiracy  to  defraud,  the  parties  may  be  tried  in  any  district  where  the 
conspiracy  is  committed  or  an  overt  act  done  in  pursuance  of  the  illegal  purpose. 
(U.  S.  v.  Rindskopf,  6  Biss.  259;  Fed.  Cas.  No.  16165.) 

Removal  of  suits  or  prosecutions  against  officers  from  State  courts  to  United  States  circuit  courts. 

m  Sec.  643.  [As  amended  by  act  of  Feb.  8, 1894  (28  Stat.,  36) .]  When  any 
civil  suit  or  criminal  prosecution  is  commenced  in  any  court  of  a  State 
against  any  officer  appointed  under  or  acting  by  authority  of  any  reve- 
nue law  of  the  United  States  now  or  hereafter  enacted,  or  against  any 
person  acting  under  or  by  authority  of  any  such  officer,  on  account  of 
any  act  done  under  color  of  his  office  or  of  any  such  law,  or  on  account 
of  any  right,  title,  or  authority  claimed  by  such  officer  or  other  person 
under  any  such  law;  or  is  commenced  against  any  person  holding  prop- 
erty or  estate  by  title  derived  from  any  such  officer,  and  affects  the 
validity  of  any  such  revenue  law;  *  *  *  the  said  suit  or  prosecu- 
tion may,  at  any  time  before  the  trial  or  final  hearing  thereof,  be  re- 
moved for  trial  into  the  circuit  court  next  to  be  holden  in  the  district 
where  the  same  is  pending,  upon  the  petition  of  such  defendant  to  said 
circuit  court,  and  in  the  following  manner:  Said  petition  shall  set  forth 


APPENDIX.  387 

the  nature  of  the  suit  or  prosecution,  and  be  verified  by  affidavit;  and, 
together  with  a  certificate  signed  by  an  attorney  or  counselor  at  law  of 
some  court  of  record  of  the  State  where  such  suit  or  prosecution  is 
commenced,  or  of  the  United  States,  stating  that,  as  counsel  for  the 
petitioner,  he  has  examined  the  proceedings  against  him,  and  carefully 
inquired  into  all  the  matters  set  forth  in  the  petition,  and  that  he 
believes  them  to  be  true,  shall  be  presented  to  the  said  circuit  court,  if 
in  session,  or  if  it  be  not,  to  the  clerk  thereof  at  his  office,  and  shall  be 
filed  in  said  office.  The  cause  shall  thereupon  be  entered  on  the 
docket  of  the  circuit  court,  and  shall  proceed  as  a  cause  originally 
commenced  in  that  court ;  but  all  bail  and  other  security  given  upon 
such  suit  or  prosecution  shall  continue  in  like  force  and  effect  as  if 
the  same  had  proceeded  to  final  judgment  and  execution  in  the  State 
court. 

When  the  suit  is  commenced  in  the  State  court  by  summons,  sub- 
poena, petition,  or  another  process  except  capias,  the  clerk  of  the 
circuit  court  shall  issue  a  writ  of  certiorari  to  the  State  court,  requiring 
it  to  send  to  the  circuit  court  the  record  and  proceedings  in  the  cause. 

When  it  is  commenced  by  capias,  or  by  any  other  similar  form  of 
proceeding  by  which  a  personal  arrest  is  ordered,  he  shall  issue  a  writ 
of  habeas  corpus  cum  causa,  a  duplicate  of  which  shall  be  delivered 
to  the  clerk  of  the  State  court,  or  left  at  his  office,  by  the  marshal  of 
the  district,  or  his  deputy,  or  by  some  person  duly  authorized  thereto; 
and  thereupon  it  shall  be  the  duty  of  the  State  court  to  stay  all 
further  proceedings  in  the  cause,  and  the  suit  or  prosecution,  upon 
delivery  of  such  process,  or  leaving  the  same  as  aforesaid,  shall  be 
held  to  be  removed  to  the  circuit  court,  and  any  further  proceedings, 
trial,  or  judgment  therein  in  the  State  court  shall  be  void. 

And  if  the  defendant  in  the  suit  or  prosecution  be  in  actual  custody 
on  mesne  process  therein,  it  shall  be  the  duty  of  the  marshal,  by  virtue 
of  the  writ  of  habeas  corpus  cum  causa,  to  take  the  body  of  the  de- 
fendant into  his  custody,  to  be  dealt  with  in  the  cause  according  to 
law  and  the  order  of  the  circuit  court,  or,  in  vacation,  of  any  judge 
thereof;  and  if,  upon  the  removal  of  such  suit  or  prosecution,  it  is 
made  to  appear  to  the  circuit  court  that  no  copy  of  the  record  and 
proceedings  therein  in  the  State  court  can  be  obtained,  the  circuit 
court  may  allow  and  require  the  plaintiff  to  proceed  de  novo,  and  to 
file  a  declaration  of  his  cause  of  action,  and  the  parties  may  there- 
upon proceed  as  in  actions  originally  brought  in  said  circuit  court. 
On  failure  of  the  plaintiff  so  to  proceed,  judgment  of  non  prosequitur 
may  be  rendered  against  him,  with  costs  for  the  defendant. 

Reenacted  Sec.  33  of  "The  Judicial  Code,"  Act  March  3,  1911. 

Under  this  section,  which  declares  that  after  removal  "any  further  proceed- 
ing, trial,  or  judgment  therein  in  the  State  court  shall  be  void,"  an  indictment 
found  in  a  State  court  after  the  removal  of  the  cause  to  the  United  States 
circuit  court  was  null;  and  where,  upon  habeas  corpus  cum  causa,  it  appears 
that  the  prisoners  were  in  the  discharge  of  their  duty  as  revenue  officers  of  the 
United  States  when  the  act  was  committed,  and  were  without  fault,  they  will 
be  discharged  (State  of  North  Carolina  v.  Kirkpatrick  et  al.  (1890)-,  42  Fed. 
Rep.,  689;  36  Int.  Rev.  Rec,  133). 

This  act  is  constitutional.  (Sup.  Court,  State  of  N.  C;  State  v.  Hoskins  et 
al.;  23  Int.  Rev.  Rec,  263;  77  N.  C.  530.) 

Removal  of  criminal  case.  (Tennessee  v.  Davis,  100  U.  S.,  257;  26  Int.  Rev. 
Rec,  90.) 


388  APPENDIX. 

Case  of  a  guard  acting  in  aid  of  a  marshal.  (Davis  v.  South  Carolina,  107 
U.  S.,  597;  29  Int.  Rev.  Rec.,  189.) 

Habeas  corpus:  The  writ  can  not  be  sustained  if  issued  by  State  court  to 
inquire  into  detention  of  a  person  by  a  United  States  officer.  Conflict  between 
State  and  United  States  courts.  (Tarble's  Case,  13  Wall.,  397;  15  Int.  Rev.  Rec, 
135;  dissenting  opinion  of  Chief  Justice  Chase,  15  ibid.,  193.) 

A  summary  proceeding  by  a  landlord  to  recover  from  a  lessee  possession  of 
premises  used  as  a  bonded  warehouse,  to  which  proceeding  the  collector  of 
internal  revenue  and  a  United  States  storekeeper  are  made  parties  defendant, 
and  described  as  undertenants  holding  over,  is  removable  to  a  Federal  court 
under  this  section.  (Gallatin  v.  Sherman  et  al.,  circuit  court  southern  district 
of  New  York,  (1896),  77  Fed.  Rep.,  337.) 

When  a  prosecution  can  be  deemed  to  be  commenced  within  the  meaning  of 
the  acts  of  Congress  authorizing  removal  from  State  courts  to  United  States 
courts  for  trial.     (Virginia  y.  Paul,  148  U.  S.,  107.) 

A  criminal  prosecution  is  commenced  as  soon  as  a  warrant  has  been  issued 
and  is  then  removable  into  the  United  States  circuit  court.  (State  of  Georgia 
v.  Bolton,  11  Fed.  Rep.,  217.) 

The  removal  of  a  prosecution  against  a  United  States  revenue  officer  from  a 
State  to  a  Federal  court  is  effected,  and  complete  jurisdiction  acquired,  im- 
mediately upon  the  filing  of  a  proper  petition  therefor  in  the  clerk's  office  of  the 
Federal  court.     (State  v.  Sullivan,  50  Fed.  Rep.,  593.) 

Expenses  accruing  in  a  local  court  in  action  against  a  collector  before  being 
transferred  to  a  Federal  court  are  payable  from  the  appropriation  "Miscellaneous 
expenses,  Internal-Revenue  Service."  (Comp.  MS.  Dec,  Apr.  11,  1907,  case 
of  Cureton  v.  Rucker.) 

Cost  of  procuring  transcripts  of  the  record  of  the  local  courts  for  the  use  of  the 
United  States  payable  by  the  Department  of  Justice.  (Comp.  MS.  Dec,  Lyman 
v.  Cabell,  Oct.  2,  1902.) 

Charges  which  may  be  joined  in  one  indictment. 

Sec.  1024.  When  there  are  several  charges  against  any  person 
for  the  same  act  or  transaction,  or  for  two  or  more  acts  or  trans- 
actions connected  together,  or  for  two  or  more  acts  or  transactions  of 
the  same  class  of  crimes  or  offenses,  which  may  be  properly  joined, 
instead  of  having  several  indictments  the  whole  may  be  joined  in  one 
indictment  in  separate  counts;  and  if  two  or  more  indictments  are 
found  in  such  cases,  the  court  may  order  them  to  be  consolidated. 

Although  section  3397  designates  as  felonies  some  of  the  offenses  specified 
in  it,  and  omits  to  designate  others  as  felonies,  offenses  of  each  class,  which 
arise  out  of  one  and  the  same  transaction,  may,  under  section  1024,  be  charged 
in  one  indictment  in  different  counts.  (United  States  v.  Louis  Jacoby,  12 
Blatch.,  491.) 

Several  charges  may  be  joined  in  one  indictment  in  separate  counts,  but  the 
accused  shall  not  be  tried  at  the  same  time  for  different  offenses;  and  an  indict- 
ment charging  the  accused  in  one  count  with  carrying  on  the  business  of  a 
retail  liquor  dealer  without  having  paid  the  special  tax,  and  in  another  with 
dealing  in  manufactured  tobacco  without  payment  of  the  special  tax,  will  be 
quashed.     (United  States  v.  Gaston,  28  Fed.  Rep.,  848.) 

The  subject  of  the  joinder  of  distinct  offenses  in  one  indictment  against  the 
same  person  fully  examined.  (Pointer  v.  United  States,  151  U.  S.,  396;  Wil- 
liams v.  United  States,  168  U.  S.,  390;  United  States  v.  Maguire,  22  Int.  Rev. 
Rec,  146.) 

The  statute,  in  permitting  the  joinder  of  different  offenses  in  a  single  indict- 
ment, by  necessary  implication  authorizes  a  separate  punishment  for  each 
offense  proved.  (U.  S.  v.  Bennett,  17  Blatchf.,  357;  Fed.  Cas.  14572;  26  Int. 
Rev.  Rec,  45.) 

Each  count  is  in  fact  a  separate  indictment.  (U.  S.  v.  Malone,  9  Fed. 
Rep.,  897.) 

Consolidation  of  indictments.     (U.  S.  v.  Green,  146  Fed  Rep.,  781.) 

Felonies  defined.  All  offenses  which  may  be  punished  by  death,  or  imprison- 
ment for  a  term  exceeding  one  year,  shall  be  deemed  felonies.  All  other  offenses 
shall  be  deemed  misdemeanors.  (Sec.  335,  act  of  Alar.  4,  1909,  35  Stat.,  1152, 
Criminal  Code.) 


APPENDIX.  389 

Offenders  against  the  United  States,  how  arrested  and  removed  for  trial — Warrants  may  be  Issued 

by  State  officers. 

Sec.  1014.  For  any  crime  or  offense  against  the  United  States,  the 
offender  may,  by  any  justice  or  judge  of  the  United  States,  or  by  any 
commissioner  of  a  circuit  court  to  take  bail,  or  by  any  chancellor, 
judge  of  a  supreme  or  superior  court,  chief  or  first  judge  of  common 
pleas,  mayor  of  a  city,  justice  of  the  peace,  or  other  magistrate,  of  any 
State  where  he  may  be  found,  and  agreeably  to  the  usual  mode  of 
process  against  offenders  in  such  State,  and  at  the  expense  of  the 
United  States,  be  arrested  and  imprisoned,  or  bailed,  as  the  case  may 
be,  for  trial  before  such  court  of  the  United  States  as  by  law  has  cogni- 
zance of  the  offense.  Copies  of  the  process  shall  be  returned  as  speedily 
as  may  be  into  the  clerk's  office  of  such  court,  together  with  the 
recognizances  of  the  witnesses  for  their  appearance  to  testify  in  the 
case.  And  where  any  offender  or  witness  is  committed  in  any  district 
other  than  that  where  the  offense  is  to  be  tried,  it  shall  be  the  duty  of 
the  judge  of  the  district  where  such  offender  or  witness  is  imprisoned, 
seasonably  to  issue,  and  of  the  marshal  to  execute,  a  warrant  for  his 
removal  to  the  district  where  the  trial  is  to  be  had. 

Marshal  can  not  be  aided  by  the  military.  (Sec  15,  act  of  June  18,  1878  (20 
Stat.,  152);  16  Op.  Atty.  Gen.,  162.) 

A  person  arrested  in  one  district  may  be  held  to  bail  for  trial  in  another  upon 
a  certified  copy  of  an  indictment  which  has  been  found  against  him  in  such 
other  district.     (United  States  v.  Pope,  24  Int.  Rev.  Rec,  29.) 

A  preliminary  examination  before  a  commissioner  is  not  a  proceeding  in 
court.     (Todd  v.  United  States,  158  U.  S.,  278.) 

Powers  of  United  States  commissioner.  (United  States  v.  Berry,  26  Int.  Rev. 
Rec,  405.) 

The  powers  exercised  by  a  United  States  commissioner  in  the  examination 
of  a  person  charged  with  an  offense  are  those  common  to  all  examining  magis- 
trates. To  authorize  him  to  commit  he  need  not  be  convinced  of  the  guilt  of 
the  accused,  but  the  proof  should  be  such  as  to  afford  good  reason  to  believe 
that  the  offense  was  committed,  and  by  the  accused;  otherwise  it  is  his  duty 
to  discharge.     (Ex  parte  Jones,  96  Fed.  Rep.,  200.) 

Warrants  of  arrest,  page  402. 

Section  1014  made  applicable  to  the  Philippine  Islands.  Act  of  February  9, 
1903  (32  Stat.,  806). 

Laws  of  the  State  constitute  rules  of  decision  as  to  competency  of  witnesses. 

Sec.  85S  [Amended  by  act  of  June  29,  1906  (§4  Stat,  618).}.  The 
competency  of  a  witness  to  testify  in  any  civil  action,  suit,  or  proceed- 
ing in  the  courts  of  the  United  States  shall  be  determined  by  the  laws 
of  the  State  or  Territory  in  which  the  court  is  held. 

Persons  charged  with  crime  can  be  witnesses  in  their  own  behalf. 

Act  of  March  16,  1878.     (20  Stat.,  30.) 

That  in  the  trial  of  all  indictments,  informations,  complaints,  and 
other  proceedings  against  persons  charged  with  the  commission  of 
crimes,  offenses,  and  misdemeanors,  in  the  United  States  courts,  Terri- 
torial courts,  and  courts-martial,  and  courts  of  inquiry,  in  any  State  or 
Territory,  including  the  District  of  Columbia,  the  person  so  charged 
shall,  at  his  own  request  but  not  otherwise,  be  a  competent  witness. 

And  his  failure  to  make  such  request  shall  not  create  any  presump- 
tion against  him. 

Accomplices  used  as  witnesses;  rule  as  to  prosecution.  (United  States  v. 
Ford,  Whiskey  Cases,  99  U.  S.  (9  Otto),  594;  25  Int.  Rev.  Rec,  127.) 


390  APPENDIX. 

The  evidence  of  an  accomplice  is  competent.  If  corroborated  by  other  wit- 
nesses, credit  is  to  be  given  to  it.  (United  States  v.  Whalan  et  al.,  7  Int.  Rev. 
Rec,  161;  United  States  v.  Callicott,  7  ibid,  179.) 

No  person  shall  be  compelled  in  any  criminal  case  to  be  a  witness  against 
himself.  Fifth  amendment  to  Constitution.  (In  re  Mark  Strouse,  11  Int.  Rev. 
Rec,  182;  In  re  Phillips,  10  Int.  Rev.  Rec,  107.)  _ 

An  officer  of  a  corporation  is  not  privileged  from  giving  testimony  as  a  witness 
because  it  may  tend  to  convict  the  corporation  of  a  penal  offense.  (London  v. 
Everett  II.  Dunbar  Corporation,  179  Fed.  Rep.,  506.) 

Production  of  books,  papers,  etc.,  in  suits  other  than  criminal. 

Sec.  5  [Act  of  June  22,  1874  08  Stat.,  187).}.  That  in  all  suits  and 
proceedings  other  than  criminal  arising  under  any  of  the  revenue-laws 
of  the  United  States,  the  attorney  representing  the  Government,  when- 
ever, in  his  belief,  any  business-book,  invoice,  or  paper,  belonging  to  or 
under  the  control  of  the  defendant  or  claimant,  will  tend  to  prove  any 
allegation  made  by  the  United  States,  may  make  a  written  motion, 
particularly  describing  such  book,  invoice,  or  paper,  and  setting  forth 
the  allegation  which  he  expects  to  prove;  and  thereupon  the  court  in 
which  suit  or  proceeding  is  pending  may,  at  its  discretion,  issue  a 
notice  to  the  defendant  or  claimant  to  produce  such  book,  invoice,  or 
paper  in  court,  at  a  day  and  hour  to  be  specified  in  said  notice,  which, 
together  with  a  copy  of  said  motion,  shall  be  served  formally  on  the 
defendant  or  claimant  by  the  United  States  marshal  by  delivering  to 
him  a  certified  copy  thereof,  or  otherwise  serving  the  same  as  original 
notices  of  suit  in  the  same  court  are  served;  and  if  the  defendant  or 
claimant  shall  fail  or  refuse  to  produce  such  book,  invoice,  or  paper  in 
obedience  to  such  notice,  the  allegation  stated  in  the  said  motion  shall 
be  taken  as  confessed  unless  his  failure  or  refusal  to  produce  the  same 
shall  be  explained  to  the  satisfaction  of  the  court.  And  if  produced, 
the  said  attorney  shall  be  permitted,  under  the  direction  of  the  court, 
to  make  examination  (at  which  examination  the  defendant  or  claim- 
ant, or  his  agent,  may  be  present)  of  such  entries  in  said  book,  invoice, 
or  paper  as  relate  to  or  tend  to  prove  the  allegation  aforesaid,  and 
may  offer  the  same  in  evidence  on  behalf  of  the  United  States. 

But  the  owner  of  said  books  and  papers,  his  agent  or  attorney,  shall 
have,  subject  to  the  order  of  the  court,  the  custody  of  them,  except 
pending  their  examination  in  court  as  aforesaid. 

This  act  not  repugnant  to  the  Constitution.  (United  States  v.  Three  Tons 
of  Coal,  21  Int.  Rev.  Rec,  251.)  _ 

This  section  applies  to  proceedings  under  the  internal-revenue  laws  as  well  as 
the  customs-revenue  laws.  The  act  is  constitutional.  (United  States  v.  Dis- 
tillery No.  28  and  Other  Property,  21  Int.  Rev.  Rec,  366.) 

A  compulsory  production  of  a  person's  private  papers  to  be  used  as  evidence 
against  him  in  a  proceeding  to  forfeit  his  property  for  alleged  fraud  against 
the  revenue  laws  is  an  "unreasonable  search  or  seizure"  within  the  meaning 
of  the  fourth  amendment  to  the  Constitution.  (Boyd  v.  United  States,  116 
U.  S.,  617;  32  Int.  Rev.  Rec,  62.) 

The  power  to  compel  the  production  of  books  and  papers  covers  such  docu- 
ments only  as  would  be,  "if  produced,  competent  material  evidence  for  the 
party  applying  therefor."  It  does  not  permit  the  inquisition  into  private  rec- 
ords on  the  mere  possibility  that  something  may  be  found  to  refresh  the  rec- 
ollection of  a  witness,  such  records  not  being  in  themselves  relevant  to  the 
case.     (United  States  v.  S.  J.  Tilden,  25  Int.  Rev.  Rec,  352.) 

Searches  and  seizures.     (Hale  v.  Henkel,  201  U.  S.,  43.) 

Section  724,  R.  S.,  as  to  power  to  produce  books  and  papers  in  action  at  law. 


APPENDIX.  391 

Certified  copies  of  papers  admissible  as  evidence. 

Sec.  882.  Copies  of  any  books,  records,  papers,  or  documents  in  any 
of  the  Executive  Departments,  authenticated  under  the  seals  of  such 
Departments,  respectively,  shall  be  admitted  in  evidence  equally  with 
the  originals  thereof. 

As  to  transcripts  from  books  in  suits  against  delinquent  officers.  (Sees.  886, 
887,  p.  413.) 

Typewritten  letter  signed  with  stencil  inadmissible  as  evidence,  unless 
acknowledged.     (Sprinkle y.  U.  S.,  (1906)  150  Fed.  Rep.,  56.) 

The  proper  mode  of  proving  papers  on  file  in  the  Departments  is  by  procuring 
certified  copies.     (Barnes  v.  Schmeider,  9  Wall.,  253.) 

Documents  not  official  do  not  by  the  mere  fact  of  certification  become  so 
authenticated  as  to  entitle  them  to  be  read  in  evidence.     (Block  v.  United 
States,  7  Ct.  Cls.,  406.) 

In  the  matter  of  the  application  of  a  private  person  for  a  certified  copy  of 
records  and  files  of  Department.     (30  Int.  Rev.  Rec,  382.) 

No  information  in  regard  to  transactions  of  an  official  character  in  this  Depart- 
ment is  to  be  communicated  to  anyone  not  authorized  to  receive  the  same. 

No  information  in  regard  to  the  claim  of  any  person  which  has  ever  been  filed 
in  the  department  is  to  be  given  to  any  other  person  unless  proper  authority  is 
shown  by  way  of  power  of  attorney,  or  by  letters  of  administration,  or  otherwise 
in  a  manner  satisfactory  to  the  Secretary,  or  an  Assistant  Secretary,  or  to  the 
head  of  the  proper  Bureau  in  the  Department,  or  chief  of  the  proper  division  in 
the  Secretary's  office.     (Department  Rule  IX;  Dept.  Cir.,  No.  69,  July  5, 1906.) 

In  all  cases  where  copies  of  documents  or  records  are  desired  by,  or  on  behalf 
of,  parties  to  a  suit,  whether  in  a  court  of  the  United  States  or  any  other,  such 
copies  shall  be  furnished  to  the  court  only,  and  on  a  rule  of  the  court  upon  the 
Secretary  of  the  Treasury  requesting  the  same.  Exceptions  to  this  rule  will  be 
made  only  on  the  written  order  of  the  Secretary  or  of  an  Assistant  Secretary. 
(Department  Rule  IX.) 

The  records  in  the  office  of  collector  of  customs  respecting  the  entry,  liquida- 
tion and  payment  of  duties  are  so  far  public  records  that  the  importer  has 
a  right  to  inspect  them  when  they  relate  to  his  importations.  (United  States  v. 
Benjamin  H.  Hutton  and  Charles  G.  Landon,  25  Int.  Rev.  Rec,  57.) 

Official  communications  privileged  from  disclosure  on  the  ground  of  public 
policy.     (Gardner  v.  Anderson.  22  Int.  Rev.  Rec,  41.) 

Privileged  records,  documents,  or  communications.  (Shattuc  v.  McArthur, 
25  Fed.  Rep.,  137,  note  2;  15  Op.  Atty.  Gen.,  415,  562;  16  ibid.,  24;  24  Int.  Rev. 
Rec,  178;  papers  upon  which  an  assessment  is  made.) 

A  subpoena  duces  tecum,  issued  by  a  State  court,  was  served  upon  a  district 
attorney,  requiring  him  to  appear  as  a  witness  in  a  private  suit  and  bring  with 
him  all  letters  and  telegrams  received  from  the  Commissioner  of  Internal  Rev- 
enue relative  to  certain  causes  then  pending  in  a  United  States  court  on  indict- 
ments under  the  internal-revenue  laws:  Advised,  That  it  would  be  proper  for  the 
attorney  to  appear  before  the  State  court  in  obedience  to  the  writ,  and  there 
object  to  produce  the  papers  on  the  ground  that  they  are  privileged,  if,  in  his 
judgment  or  in  that  of  the  Commissioner,  their  production  would  be  prejudi- 
cial to  the  public  interests.     (15  Op.  Atty.  Gen.,  378;  23  Int.  Rev.  Rec,  341.) 

The  head  of  an  executive  department  may  legally  prohibit  the  chief  of  a 
bureau  from  producing  in  court  any  official  records  of  the  department,  or  cer- 
tified copies  thereof,  in  obedience  to  a  subpoena  duces  tecum,  and  from  making 
or  certifying  copies  of  such  official  records. 

The  records  of  executive  departments  are  quasi-confidential  in  their  nature, 
and  must  be  classed  as  privileged  communications  whose  production  can  not  be 
compelled  by  a  court  without  express  authority  of  law.  (25  Op.  Atty.  Gen., 
326.) 

Officers  of  the  executive  departments  can  not  be  required  to  remove  records 
or  papers  filed  therein  by  subpoena  duces  tecum.     (5  Lawrence  Dec,  446.) 

The  Federal  courts  have  jurisdiction,  under  section  753,  to  issue  writ  for 
the  purpose  of  releasing  a  deputy  revenue  collector  from  imprisonment  for 
alleged  contempt  of  a  State  court  in  refusing  to  testify  to  the  contents  of  the 
records  of  the  internal-revenue  office.  (In  re  Huttman,  70  Fed.  Rep.,  700; 
41  Int.  Rev.  Rec,  477.) 


392  APPENDIX. 

An  instruction  issued  by  the  Commissioner  of  Internal  Revenue  directing  col- 
lectors and  their  deputies  to  refuse  to  produce,  in  criminal  prosecutions  of 
liquor  dealers  in  the  State  courts,  the  returns  made  to  the  collectors,  or  the 
lists  showing  payments  of  Federal  liquor  taxes,  or  to  give  information  derived 
from  official  sources  as  to  the  fact  of  such  payments,  is  valid.  (In  re  Weeks, 
Vermont  (1897),  82  Fed.  Rep.,  729;  43  Int.  Rev.  Rec,  393;  Boske  v.  Comingore, 
177  U.  S.,  459,  T.  D.,  104;  In  re  Lamberton,  124  Fed.  Rep.  446;  T.  D.,  689; 
Stegall  v.  Thurman,  175  Fed.  Rep.,  813;  T.  D.,  1616;  In  re  Comingore,  collector 
(1899),  96  Fed.  Rep.,  552;  T.  D.,  21584.) 

Costs  In  Internal-revenue  suits  upon  information  from  other  than  collector,  etc. 

Sec.  969.  When  a  suit  for  the  recovery  of  any  penalty  or  forfeiture 
accruing  under  any  law  providing  internal  revenue  is  brought  upon 
information  received  from  any  person  other  than  a  collector,  deputy 
collector,  or  inspector  of  internal  revenue,  the  United  States  shall  not 
be  subject  to  any  costs  of  suit. 

Similar  provision  in  section  3214,  p.  111. 

Costs  when  several  actions  are  brought  which  might  be  joined  in  one.  (Sees. 
977,  980.) 

Costs  when  paid  by  defendant. 

Sec.  974.  When  judgment  is  rendered  against  the  defendant  in  a 
prosecution  for  any  fine  or  forfeiture  incurred  under  a  statute  of  the 
United  States,  he  shall  be  subject  to  the  payment  of  costs;  and  on 
every  conviction  for  any  other  offense  not  capital,  the  court  may  in  its 
discretion  award  that  the  defendant  shall  pay  the  costs  of  the  prose- 
cution. 

The  word  defendant  held  to  include  a  claimant  in  an  action  in  rem  for  for- 
feiture.    (United  States  v.  Seven  Barrels  Distilled  Oil,  8  Int.  Rev.  Rec,  162.) 

Section  17  of  the  act  of  May  28,  1896  (29  Stat.  178),  relative  to  salaries  of 
district  attorneys,  provides  that  the  act  is  not  to  be  so  construed  as  to  prevent 
or  affect  the  amount  of  taxation  of  costs  against  the  unsuccessful  party  in  civil 
proceedings  or  against  defendants  convicted  of  crimes  or  misdemeanors. 

Laws  of  the  States,  rules  of  decision. 

Sec.  721.  The  laws  of  the  several  States,  except  where  the  Consti- 
tion,  treaties,  or  statutes  of  the  United  States  otherwise  require  or 
provide,  shall  be  regarded  as  rules  of  decision  in  trials  at  common  law, 
in  the  courts  of  the  United  States,  in  cases  where  they  apply. 

The  above  provision  is  not  applicable  to  proceedings  in  equity,  or  in  admi- 
ralty, or  to  criminal  offenses  against  the  United  States.  (Bucher  v.  Cheshire 
Railroad  Company,  125  U.  S.,  555.) 

The  courts  of  the  United  States  are  governed  by  the  rules  of  the  common 
law,  because  the  common  law  is  in  force  in  the  State  or  Territory  where  the 
cause  of  action  arose  or  is  to  be  enforced,  and  not  because  the  common  law  has 
been  adopted  by  the  United  States,  or  has  under  the  laws  of  the  United  States 
any  binding  force,  except  as  being  the  law  of  some  State,  Territory,  or  District. 
United  States  v.  Garlinghouse  et  al.,  11  Int.  Rev.  Rec,  11.) 

Federal  courts  are  bound  to  follow*the  decisions  of  the  State  courts  constru- 
ing their  own  constitution  or  statutes.  (Mooney  v.  Humphrey,  28  Int.  Rev. 
Rec,  343.) 

How  far  decisions  of  the  highest  courts  of  a  State  on  State  laws  are  binding  on 
Supreme  Court  of  United  States.     (Burgess  v.  Seligman,  107  U.  S.,  20.) 

See  section  858,  Revised  Statutes,  amended,  page  389,  as  to  laws  of  the  State 
being  rules  of  decision  as  to  competency  of  witnesses. 

Practice  conforms  to  forms  and  modes  of  proceeding  in  State  courts. 

Sec.  914.  The  practice,  pleadings,  and  forms  and  modes  of  pro- 
ceeding in  civil  causes  other  than  equity  and  admiralty  causes,  in  the 
circuit  and  district  courts,  shall  conform,  as  near  as  may  be,  to  the 


APPENDIX.  393 

practice,  pleadings,  and  forms  and  modes  of  proceeding  existing  at 
the  time  in  like  causes  in  the  courts  of  record  of  the  State  within  which 
such  circuit  or  district  courts  are  held,  any  rule  of  court  to  the  con- 
trary notwithstanding. 

Sage  v.  Tauszky  (24  Int.  Rev.  Rec,  12). 
In  re  Secretary  of  Treasury  (45  Fed.  Rep.,  396). 
United  States  v.  Collins  (18  Int.  Rev.  Rec.,  69). 
Nudd  v.  Burrows  (91  U.  S.,  441). 

Proceedings  on  execution  governed  by  State  laws. 

Sec.  916.  The  party  recovering  a  judgment  in  any  common-law 
cause  in  any  circuit  or  district  court,  shall  be  entitled  to  similar  reme- 
dies upon  the  same,  by  execution  or  otherwise,  to  reach  the  property 
of  the  judgment  debtor,  as  are  now  provided  in  like  causes  by  the 
laws  of  the  State  in  which  such  court  is  held,  or  by  any  such  laws 
hereafter  enacted,  which  may  be  adopted  by  general  rules  of  such 
circuit  or  district  court;  and  such  courts  may,  from  time  to  time,  by 
general  rules,  adopt  such  State  laws  as  may  hereafter  be  in  force  in 
such  State  in  relation  to  remedies  upon  judgments,  as  aforesaid,  by 
execution  6r  otherwise. 

Collection  of  judgments  for  fines  and  penalties  (sec.  1041).  (Case  of  Louis 
Teuscher,  23  Int.  Rev.  Rec,  202.)     Poor  convicts  law  (sec.  1042). 

State  exemption  laws  govern.  (Fink  v.  O'Neil,  106  U.  S.  (16  Otto),  272;  28 
Int.  Rev.  Rec,  405.) 

Homestead  exemption.  (Allen  v.  Clark,  126  Fed.  Rep.,  738,  affirming  114 
Fed.  Rep.,  374  and  117  ibid.,  679.) 

Judgment  can  not  be  opened  at  a  term  subsequent  to  that  at  which  it  was 
entered.     (Bronson  v.  Schulten,  104  U.  S.  (14  Otto),  410;  28  Int.  Rev.  Rec,  231.) 

If  plaintiff  and  defendant  agree,  judgment  may  be  set  aside  at  a  subsequent 
term.     (Seat,  administrator,  v.  United  States,  18  Ct.  ('1ms.,  468.) 

Not  lawful  to  employ  any  part  of  the  United  States  Army  as  a  posse  comitatus. 
(Act  June  18,  1878  (20  Stat.,  152);  16  Op.  Atty.  Gen.,  162.) 

Redemption  of  lands  sold  under  execution,  local  laws  govern.  (Brine  v. 
Hartford  Fire  Insurance  Co.,  96  U.  S.,  627;  24  Int.  Rev.  Rec,  243.) 

The  United  States  circuit  court,  southern  district  of  New  York,  made  an  order 
for  the  examination  of  Robert  Boyd  to  discover  whether  he  had  property  to 
satisfy  judgment  of  the  court.  Boyd  refused  to  testify,  and  was  imprisoned  for 
contempt  of  court.  The  Supreme  Court  was  petitioned  for  a  writ  of  habeas 
corpus  and  certiorari.  The  circuit  court  was  sustained  in  proceedings  in  the 
matter  in  accordance  with  the  laws  of  the  State  of  New  York,  under  section  916. 
(Ex  parte  Boyd,  28  Int.  Rev.  Rec,  232;  105  U.  S.,  647.) 

Proceedings  of  marshal  upon  execution.  (Sowles  v.  Witters,  46  Fed.  Rep., 
497;  Cir.  No.  331,  35  Int.  Rev.  Rec,  197.) 

Executions  in  favor  of  United  States  to  run  in  every  State  and  Territory. 

Sec.  986.  All  writs  of  execution  upon  judgments  obtained  for  the 
use  of  the  United  States,  in  any  court  thereof,  in  one  State,  may  run 
and  be  executed  in  any  other  State  or  in  any  Territory,  but  shall  be 
issued  from,  and  made  returnable  to,  the  court  wherein  the  judgment 
was  obtained. 

Judgment  records  and  liens  of  judgments. 

AN  ACT  To  regulate  the  liens  of  judgments  and  decrees  of  the  courts  of  the  United 
States  (act  of  Aug.  1,  1888  (25  Stat.,  357)  as  amended  by  act  of  Mar.  2,  1895  (28 
Stat.,  814)). 

Sec.  1.  That  judgments  and  decrees  rendered  in  a  circuit  or  district 
court  of  the  United  States  within  any  State,  shall  be  liens  on  property 
throughout  such  State  in  the  same  manner  and  to  the  same  extent  and 
under  the  same  conditions  only  as  if  such  judgments  and  decrees  had 


394  APPENDIX. 

been  rendered  by  a  court  of  general  jurisdiction  of  such  State:  Pro- 
vided, That  whenever  the  laws  of  any  State  require  a  judgment  or 
decree  of  a  State  court  to  be  registered,  recorded,  docketed,  indexed, 
or  any  other  thing  to  be  done,  in  a  particular  manner,  or  in  a  certain 
office  or  county,  or  parish  in  the  State  of  Louisiana  before  a  lien  shall 
attach,  this  act  shall  be  applicable  therein  whenever  and  only  when- 
ever the  laws  of  such  State  shall  authorize  the  judgments  and  decrees 
of  the  United  States  courts  to  be  registered,  recorded,  docketed, 
indexed,  or  otherwise  conformed  to  the  rules  and  requirements  re- 
lating to  the  judgments  and  decrees  of  the  courts  of  the  State. 

Sec.  2.  That  the  clerks  of  the  several  courts  of  the  United  States 
shall  prepare  and  keep  in  their  respective  offices  complete  and  con- 
venient indices  and  cross-indices  of  the  judgment  records  of  said 
courts,  and  such  indices  and  records  shall  at  all  times  be  open  to  the 
inspection  and  examination  of  the  public. 

Sec.  3.  That  nothing  herein  shall  be  construed  to  require  the  dock- 
eting of  a  judgment  or  decree  of  the  United  States  court,  or  the  fding 
of  a  transcript  thereof,  in  any  State  office  within  the  same  county  or 
the  same  parish  in  the  State  of  Louisiana  in  which  the  judgment  or 
decree  is  rendered,  in  order  that  such  judgment  or  decree  may  be  a 
lien  on  any  property  within  such  county,  if  the  clerk  of  the  United 
States  court  be  required  by  law  to  have  a  permanent  office  and  a 
judgment  record  open  at  all  times  for  public  inspection  in  such  county 
or  parish. 

Lien  of  judgments  in  the  Federal  courts.  (Dartmouth  Savings  Bank  v.  Bates, 
44  Fed.  Rep.,  546.) 

United  States  not  required  to  file  lien  under  State  laws.  (United  States  v. 
Snyder  et  al.,  39  Int.  Rev.  Rec,  189;  149  U.  S.,  210.) 

Judgment  liens  not  restricted  by  State  statutes.  (Carroll  v.  Watkins,  1  Abb. 
474,  Fed.  Cas.  No.  2457;  U.  S.  v.  Humphreys,  Fed.  Cas.  No.  15422,  3  Hughes, 
201.) 

Interest. 

Sec.  963.  Upon  all  bonds,  on  which  suits  are  brought  for  the  re- 
covery of  duties,  interest  shall  be  allowed,  at  the  rate  of  six  per  centum 
a  year,  from  the  time  when  said  bonds  became  due. 

Sec.  966.  Interest  shall  be  allowed  on  all  judgments  in  civil  causes, 
recovered  in  a  circuit  or  district  court,  and  may  be  levied  by  the  mar- 
shal under  process  of  execution  issued  thereon,  in  all  cases  where,  by 
the  law  of  the  State  in  which  such  court  is  held,  interest  may  be  levied 
under  process  of  execution  on  judgments  recovered  in  the  courts  of  such 
State,  and  it  shall  be  calculated  from  the  date  of  the  judgment,  at 
such  rate  as  is  allowed  by  law  on  judgments  recovered  in  the  courts 
of  such  State. 

An  act  of  Congress  giving  interest  on  judgments  does  not  include  the  Gov- 
ernment unless  expressly  named  or  so  intended  by  clear  inference.  (First 
Comptroller's  Opinion  in  Stephani's  Case,  26  Int.  Rev.  Rec,  313,  and  cases 
there  cited;  United  States  ex  rel.  v.  John  Sherman,  Secretary  of  the  Treasury, 
98  U.  S.,  567;  25  Int.  Rev.  Rec,  198). 

Angarica  v.  Bayard  (127  U.  S.,  251). 

Schell  v.  Cochran  (107  U.  S.,  625). 

Interest  on  taxes.     (See  under  sees.  3185,  p.  96,  and  3214,  p.  111. 

Interest  on  claims  against  United  States.     (See  under  sec.  3220,  p.  114.) 

Interest  in  suits  against  officers  upon  adjustment  of  accounts.  (See  sec.  3624, 
p.  407.) 

Interest  on  judgments  in  Court  of  Claims.     (See  sees.  1090,  1091.) 

Interest  only  from  commencement  of  the  suit  when  there  has  been  unreason- 
able delay  in  prosecuting  the  claims  (Sanborn  v.  United  States,  135  U.  S.,  271; 
36  Int.  Rev.  Rec,  142;  Wightman  v.  United  States,  23  Ct.  Cla.,  148.) 


APPENDIX.  395 

Writs  of  error  and  appeals  to  Supreme  Court. 

Sec.  699.  Superseded  by  the  act  establishing  Circuit  Courts  of 
Appeal. 

See  "The  Judicial  Code,"  act  of  March  3,  1911. 

Supreme  Court  has  jurisdiction  iu  an  action  to  enforce  a  revenue  law  with- 
out regard  to  amount.  (Pettigrew  v.  United  States,  97  U.  S.,  385;  24  Int.  Rev. 
Rec,  380.) 

An  act  to  provide  for  writs  of  error  or  appeals  to  the  Supreme  Court  of  the 
United  States  in  all  cases  involving  the  question  of  the  jurisdiction  of  the 
court  below.     (Act  of  Feb.  25,  1889;  25  Stat.,  693.) 

As  to  Alaska,  the  act  of  June  6,  1900,  section  504  (31  Stat.,  414)  provides  that 
appeals  and  writs  of  error  may  be  taken  from  the  district  court  directly  to  the 
Supreme  Court  in  five  classes  of  cases. 

In  Porto  Rico  (act  of  April  12,  1900;  31  Stat.,  84)  there  is  established  a  dis- 
trict court  of  the  United  States  with  jurisdiction  of  circuit  courts  of  the  United 
States.  It  is  provided  that  writs  of  error  and  appeal  from  the  final  decisions  of 
the  supreme  court  of  Porto  Rico  and  the  district  court  of  the  United  States  shall 
be  allowed  and  may  be  taken  to  the  Supreme  Court  of  the  United  States  in  the 
same  manner  and  under  the  same  regulations  and  in  the  same  cases  as  from 
the  supreme  courts  of  the  Territories;  "and  such  writs  of  error  and  appeal  shall 
be  allowed  in  all  cases  where  the  Constitution  of  the  United  States  or  a  treaty 
thereof  or  an  act  of  Congress  is  brought  in  question  and  a  right  claimed  there- 
under is  denied." 

In  Hawaii  (act  of  Apr.  30,  1900,  amended  by  act  of  Mar.  3,  1909)  a  Federal 
district  court  is  established  with  the  jurisdiction  of  district  and  circuit  courts 
of  the  United  States. 

Circuit  courts  of  appeals. 

An  Act  To  establish  circuit  courts  of  appeals  and  to  define  and  regulate  in  certain  cases 
the  jurisdiction  of  the  courts  of  the  United  States,  and  for  other  purposes,  act  of 
March  3,  1891  (26  Stat.,  827). 

No  appeal  allowed  from  district  to  circuit  courts — Appeals  to  Supreme  Court. 

Sec.  4.  That  no  appeal,  whether  by  writ  of  error  or  otherwise,  shall 
hereafter  be  taken  or  allowed  from  any  district  court  to  the  existing 
circuit  courts,  and  no  appellate  jurisdiction  shall  hereafter  be  exer- 
cised or  allowed  by  said  existing  circuit  courts,  but  all  appeals  by  writ 
of  error  or  otherwise,  from  said  district  courts  shall  only  be  subject  to 
review  in  the  Supreme  Court  of  the  United  States  or  in  the  circuit 
court  of  appeals  hereby  established,  as  is  hereinafter  provided,  and 
the  review,  by  appeal,  by  writ  of  error,  or  otherwise,  from  the  existing 
circuit  courts  shall  be  had  only  in  the  Supreme  Court  of  the  United 
States  or  in  the  circuit  court  of  appeals  hereby  established  according 
to  the  provisions  of  this  act  regulating  the  same. 

Sec.  5.  [Act  of  Mar.  3,  1891  {26  Stat,  826).]  That  appeals  or  writs 
of  error  may  be  taken  from  the  district  courts  or  from  the  existing  cir- 
cuit courts  direct  to  the  Supreme  Court  in  the  following  cases: 

In  any  case  in  which  the  jurisdiction  of  the  court  is  in  issue;  in  such 
cases  the  question  of  jurisdiction  alone  shall  be  certified  to  the  Supreme 
Court  from  the  court  below  for  decision. 

From  the  final  sentences  and  decrees  in  prize  causes. 

In  cases  of  conviction  of  a  capital  or  otherwise  infamous  crime. 

In  re  Claasen  (140  U.  S.,  200). 

In  any  case  that  involves  the  construction  or  application  of  the  Con- 
stitution of  the  United  States. 

Motes  v.  United  States  (178  U.  S.,  459). 


396  APPENDIX. 

In  any  case  in  which  the  constitutionality  of  any  law  of  the  United 
States,  or  the  validity  or  construction  of  any  treaty  made  under  its 
authority,  is  drawn  in  question. 

Rice  v.  Ames  (180  U.  S.,  371). 

In  any  case  in  which  the  constitution  or  law  of  a  State  is  claimed  to 
be  in  contravention  of  the  Constitution  of  the  United  States.     *     *     * 

Section  6  provides  that  the  judgment  of  the  circuit  courts  of  appeals  shall  be 
final  in  all  cases  arising  *  *  *  "under  the  revenue  laws"  *  *  *  ,  but 
the  circuit  court  of  appeals  at  any  time  may  certify  to  the  Supreme  Court  of  the 
United  States  any  questions  or  propositions  of  law  concerning  which  it  desires 
the  instruction  of  that  court,  or  the  Supreme  Court  may  by  certiorari  require  any 
case  to  be  certified  to  the  Supreme  Court  for  review.  (Railway  Co.  v.  Pope,  74 
Fed.  Rep.,  1;  United  States  v.  Union  Pac.  Ry.  Co.,  168  U.  S.,  505;  United 
States  v.  Felsenheld,  186  U.  S.,  126;  T.  D.  525.) 

Primary  object  of  this  act.  (American  Construction  Co.  v.  Jacksonville  Rail- 
way Co.,  148  U.  S.,  372.) 

Amendments  to  the  act  establishing  the  circuit  court  of  appeals,  with  annota- 
tion of  decisions.     (90  Fed.  Rep.,  introduction.) 

In  none  of  the  provisions  of  the  act  establishing  the  circuit  courts  of  appeals, 
defining  the  appellate  jurisdiction,  either  of  the  Supreme  Court  or  of  the  circuit 
courts  of  appeals  is  there  any  indication  of  an  intention  to  confer  upon  the 
United  States  the  right  to  take  up  a  criminal  case  of  any  grade  after  judgment 
below  in  favor  of  the  defendant.  (United  States  v.  Sanges,  144  U.  S.,  323; 
United  States  v.  Dickinson,  213  U.  S.,  92.) 

A  writ  of  error  may  be  taken  by  the  United  States  from  the  district  or  circuit 
court  to  the  Supreme  Court  in  criminal  cases  where  indictment  has  been  quashed 
if  the  decision  was  based  upon  the  invalidity  or  construction  of  the  statute 
upon  which  the  indictment  was  founded.     (Act  Mar.  2,  1907,  34  Stat.,  1246.) 

As  to  circuit  courts  of  appeals  under  "  The  Judicial  Code."  See  chap.  6,  sec. 
116,  et  seq.,  act  of  March  3,  1911. 

Sec.  1008.  No  judgment,  decree  or  order  of  a  circuit  or  district 
court,  in  any  civil  action,  at  law  or  in  equity,  shall  be  reviewed  in  the 
Supreme  Court,  on  writ  of  error  or  appeal,  unless  the  writ  of  error  is 
brought,  or  the  appeal  is  taken  within  two  years  after  the  entry  of 
such  judgment,  decree,  or  order: 

Provided,  That  where  a  party  entitled  to  prosecute  a  writ  of  error,  or 
to  take  an  appeal  is  an  infant,  insane  person  or  imprisoned,  such  writ 
of  error  may  be  prosecuted,  or  such  appeal  may  be  taken,  within  two 
years  after  the  judgment,  decree,  or  order,  exclusive  of  the  term  of 
such  disability. 

Section  11,  act  of  March  3, 1891 ;  "that  no  appeal  or  writ  of  error,  by  which  any 
order,  judgment,  or  decree  may  be  reviewed  in  the  circuit  court  of  appeals, 
under  the  provisions  of  this  act,  shall  be  taken  or  sued  out  except  within  six 
months  after  the  entrv  of  the  order,  judgment,  or  decree  sought  to  be  reviewed." 
(Rutan  v.  Johnson,  130  Fed.  Rep.,  109.) 

Appeals  or  writs  of  error  to  review  a  judgment  of  a  circuit  court  of  appeals  must 
be  sued  out  within  1  year.     (Sec.  6,  act  of  Mar.  3,  1891,  26  Stat.,  826.) 

The  statutory  time  for  taking  appeals  is  prescribed  by  act  of  Congress,  and 
can  not  be  extended  by  order  of  the  court.  (Old  Nick  Williams  Co.  v.  United 
States,  215  U.  S.,  541.) 

An  internal  revenue  case  may  be  taken  from  the  circuit  court  to  the  circuit 
court  of  appeals,  and  from  there  to  the  Supreme  Court  when  the  constitution- 
alit  v  of  an  act  of  Congress  is  involved.  (Spreckels  Sugar  Refining  Co.  v.  McClain: 
192  U.  S.,  397;  T.  D.  760.) 


APPENDIX.  397 

Appeals  from  Court  of  Claims  to  Supreme  Court. 

Sec.  708.  All  appeals  from  the  Court  of  Claims  shall  be  taken  within 
ninety  clays  after  the  judgment  is  rendered,  and  shall  be  allowed  under 
such  regulations  as  the  Supreme  Court  may  direct. 

Reenacted  section  243  of  "The  Judicial  Code,"  act  March  3,  1911. 

A  judgment  of  the  Court  of  Claims  from  which  no  appeal  is  taken  is  just  as 
conclusive  as  a  decision  of  the  Supreme  Court.  (United  States  v.  O'Gradv  22 
Wall.,  641.) 

No  bond  required  of  United  States,  etc. 

Sec.  1001.  Whenever  a  writ  of  error,  appeal  or  other  process  in  law, 
admiralty,  or  equity,  issues  from  or  is  brought  up  to  the  Supreme 
Court,  or  a  circuit  court,  either  by  the  United  States  or  by  direction  of 
any  Department  of  the  Government,  no  bond,  obligation,  or  security 
shall  be  required  from  the  United  States,  or  from  any  party  acting 
under  the  direction  aforesaid,  either  to  prosecute  said  suit,  or  to  answer 
in  damages  or  costs.  In  case  of  an  adverse  decision,  such  costs  as  by 
law  are  taxable  against  the  United  States,  or  against  the  party  acting 
by  direction  as  aforesaid,  shall  be  paid  out  of  the  contingent  fund  of 
the  Department  under  whose  directions  the  proceedings  were  insti- 
tuted. 

The  United  States,  when  a  plaintiff  in  a  civil  action,  is  entitled  to  the  writ  of 
attachment,  and  is  relieved  by  section  1001  from  giving  the  usual  undertaking 
in  such  cases.     ^United  States  v.  Ottman,  23  Int.  Rev.  Rec,  294). 

Statute  of  Limitations. 

Sec.  1047.  No  suit  or  prosecution  for  any  penalty  or  forfeiture, 
pecuniary  or  otherwise,  accruing  under  the  laws  of  the  United  States, 
shall  be  maintained,  except  in  cases  where  it  is  otherwise  specially 
provided,  unless  the  same  is  commenced  within  five  years  from  the 
time  when  the  penalty  or  forfeiture  accrued:  Provided,  That  the  per- 
son of  the  offender,  or  the  property  liable  for  such  penalty  or  forfeit- 
ure, shall,  within  the  same  period,  be  found  within  the  United  States; 
so  that  the  proper  process  therefor  may  be  instituted  and  served 
against  such  person  or  property. 

AN  ACT  To  limit  the  time  within  which  prosecutions  may  be  instituted  against  per- 
sons charged  with  violating  internal-revenue  laws.  Act  of  July  5,  1884(23  Stat., 
122). 

That  no  person  shall  be  prosecuted,  tried,  or  punished  for  any  of  the 
various  offenses  arising  under  the  internal  revenue  laws  of  the  United 
States  unless  the  indictment  is  found  or  the  information  instituted 
within  three  years  next  after  the  commission  of  the  offense,  in  all 
cases  where  the  penalty  prescribed  may  be  imprisonment  in  the 
penitentiary,  and  within  two  years  in  all  other  cases: 

Provided,  That  the  time  during  which  the  person  committing  the 
offense  is  absent  from  the  district  wherein  the  same  is  committed  shall 
not  be  taken  as  any  part  of  the  time  limited  by  law  for  the  commence- 
ment of  such  proceedings: 

Provided  further,  That  the  provisions  of  this  act  shall  not  apply  to 
offenses  committed  prior  to  its  passage : 

And  provided  further,  That  where  a  complaint  shall  be  instituted 
before  a  commissioner  of  the  United  States  within  the  period  above 


398  APPENDIX. 

limited,  the  time  shall  be  extended  until  the  discharge  of  the  grand 
jury  at  its  next  session  within  the  district: 

And  provided  further,  That  this  act  shall  not  apply  to  offenses  com- 
mitted by  officers  of  the  United  States. 

Suits  for  taxes  can  be  brought  at  any  time.  (See  decisions  quoted  under 
sec.  3214,  p.  111.) 

Limitation  of  time  within  which  suits  must  be  brought  against  sureties  on 
official  bonds  five  years.     (See  act  of  Aug.  8,  1888,  p.  372.) 

States  can  not  pass  statutes  of  limitation  binding  on  the  Federal  Govern- 
ment. (United  States  v.  Thompson  et  al.,  98  U.  S.,  486;  25  Int.  Rev.  Rec, 
143.) 

United  States  not  bound  by  any  statute  of  limitations  unless  Congress  has 
clearly  manifested  its  intention  that  they  shoidd  be  so  bound.  (United  States 
v.  Nashville  Railroad  Co.,  118  U.  S.,  125;  United  States,  v.  Beebe,  127  U.  S., 
354.) 

The  limitation  laws  of  the  State  in  which  the  suit  is  brought  do  not  furnish 
the  rule  for  determining  whether  the  action  is  brought  in  time.  (Arnson  v. 
Murphy,  109  U.  S.  238.) 

When  the  United  States  voluntarily  appear  in  a  court  of  justice,  they  at  the 
same  time  submit  to  the  law  and  place  themselves  upon  an  equality  with  other 
litigants;  but  this  does  not  apply  to  such  defenses  as  laches  and  the  statute 
of  limitations.     (United  States  v.  Ingate,  1891,  48  Fed.  Rep.,  251.) 

Certificate  of  probable  cause. 

Sec.  970.  When,  in  any  prosecution  commenced  on  account  of  the 
seizure  of  any  vessel,  goods,  wares,  or  merchandise,  made  by  any  col- 
lector or  other  officer,  under  any  act  of  Congress  authorizing  such 
seizure,  judgment  is  rendered  for  the  claimant,  but  it  appears  to  the 
court  that  there  was  reasonable  cause  of  seizure,  the  court  shall  cause 
a  proper  certificate  thereof  to  be  entered,  and  the  claimant  shall  not, 
in  such  case,  be  entitled  to  costs,  nor  shall  the  person  who  made  the 
seizure,  nor  the  prosecutor,  be  liable  to  suit  or  judgment  on  account  of 
such  suit  or  prosecution:  Provided,  That  the  vessel,  goods,  wares,  or 
merchandise  be,  after  judgment,  forthwith  returned  to  such  claimant 
or  his  agent. 

The  decision  of  the  court  below  refusing  certificate  of  probable  cause  not 
reviewable  by  circuit  or  Supreme  Court.  (United  States  v.  Abattoir  Place,  106 
U.  S.,  160.) 

Execution  not  to  issue  against  officers  of  revenue  in  cases  of  probable  cause,  etc. 

Sec.  989.  When  a  recovery  is  had  in  any  suit  or  proceeding  against 
a  collector  or  other  officer  of  the  revenue  for  any  act  done  by  him,  or 
for  the  recovery  of  any  money  exacted  by  or  paid  to  him  and  by  him 
paid  into  the  Treasury,  in  the  performance  of  his  official  duty,  and  the 
court  certifies  that  there  was  probable  cause  for  the  act  done  by  the 
collector  or  other  officer,  or  that  he  acted  under  the  directions  of  the 
Secretary  of  the  Treasury,  or  other  proper  officer  of  the  Government, 
no  execution  shall  issue  against  such  collector  or  other  officer,  but  the 
amount  so  recovered  shall,  upon  final  judgment,  be  provided  for  and 
paid  out  of  the  proper  appropriation  from  the  Treasury. 

Section  3220,  page  114.  Payment  of  judgments  against  collectors.  (United 
States  v.  Frerichs,  124  U.  S.,  315;  34  Int.  Rev.  Rec,  39.) 

Protection  afforded  to  officers  by  certificate  of  probable  cause.  (Averill  v. 
Smith,  17  Wall.,  82;  17  Int.  Rev.  Rec,  171.  Stacy  v.  Emery,  97  U.  S.  (7  Otto), 
642;  24  Int.  Rev.  Rec,  378.  Dunnagan  v.  United  States,  17  Ct.  Cls.,  247;  28 
Int.  Rev.  Rec,  144.) 


APPENDIX.  399 

The  Government  is  not  liable  for  the  torts  of  its  officers.  (Hart  v.  United 
States,  95  U.  S.,  318;  Langford  v.  United  States,  101  U.  S.,  346;  United  States 
v.  Cummings  etal.,  35  Int.  Rev.  Rec.,  142,  130  U.  S.,  453.) 

State  of  Maine  v.  U.  S.  (36  Ct.  Cls.,  532).  See  notes  under  Section  3220, 
page  114. 

The  order  of  the  commissioner  to  the  collector  of  the  district  directing  him  to 
make  a  seizure  is  in  law  a  reasonable  cause  and  a  protection  to  him  against 
damages  for  such  action.  Sections  970  and  989,  Revised  Statutes,  are  both 
existing  laws  and  not  inconsistent  or  repugnant.  (Agnew  v.  Haymes,  141 
Fed.  Rep.,  631,  T.  D.  955.) 

Property  taken  under  revenue  laws  irrepleviable. 

Sec.  934.  All  property  taken  or  detained  by  any  officer  or  other  per- 
son, under  authority  of  any  revenue  law  of  the  United  States,  shall  be 
irrepleviable,  and  shall  be  deemed  to  be  in  the  custody  of  the  law,  and 
subject  only  to  the  orders  and  decrees  of  the  courts  of  the  United 
States  having  jurisdiction  thereof. 

Brice  et  al.  v.  Elliott.     (22  Int.  Rev.  Rec,  206.) 

Conflict  of  State  and  United  States  officers.  (14  Op.  Atty.  Gen.,  370;  19  Int. 
Rev.  Rec,  73;   Buck  v.  Colbath,  3  Wall.,  334.) 

Goods  in  the  hands  of  the  United  States  held  for  taxes  can  not  be  attached 
by  State  officers.  (Harris  v.  Dennie,  3  Pet.,  292;  McCullough  v.  Large,  30  Int. 
Rev.  Rec,  166.) 

Compromises  of  claims  and  of  eases  after  judgment. 

Sec.  3469.  Upon  a  report  by  a  district  attorney,  or  any  special 
attorney  or  agent  having  charge  of  any  claim  in  favor  of  the  United 
States,  showing  in  detail  the  condition  of  such  claim,  and  the  terms 
upon  which  the  same  may  be  compromised,  and  recommending  that 
it  be  compromised  upon  the  terms  so  offered,  and  upon  the  recom- 
mendation of  the  Solicitor  of  the  Treasury,  the  Secretary  of  the 
Treasury  is  authorized  to  compromise  such  claim  accordingly.  But 
the  provisions  of  this  section  shall  not  apply  to  any  claim  arising 
under  the  postal  laws. 

Compromise  of  internal-revenue  cases  before  judgment.     (Sec.  3229,  p.  123.) 

Uncertainty  whether  the  Government  can  obtain  a  verdict  proper  ground  for 
compromise.     (16  Op.  Atty.  Gen.  259.) 

Forfeited  recognizances.     (18  Op.  Atty.  Gen.,  277.) 

Section  3469  does  not  extend  to  fines  in  criminal  cases.  (United  States  v. 
George  et  al.,  6  Blatch.,  406;    12  Op.  Atty.  Gen.,  543;    13  ibid.,  479.) 

Compromise  of  solvent  claims.  (16  Op.  Atty.  Gen.,  617;  25  Int.  Rev.  Rec, 
29.) 

Contra.     (MacVeagh,  27  Int.  Rev.  Rec,  334;    17  Op.  Atty.  Gen.,  213.) 

A  claim  can  not  be  compromised  of  whose  collectibility  in  full  there  is  no 
doubt  (Harmon).     (21  Op.  Atty.  Gen.  264.) 

See  also  23  Op.  Atty.  Gen.,  18;  633. 

Government's  claim  to  real  property  can  not  be  compromised.  (16  Op.  Atty. 
Gen.,  385.) 

No  power  to  compromise  taxes.  (Dorsheimer  v.  United  States,  74  U.  S.  (7 
Wall.),  166;   10  Int.  Rev.  Rec,  131;  2  Ct.  Cls.,  103.) 

No  authority  to  compromise  cases  under  section  32,  act  of  July  24.  1897. 

The  Attorney  General  may,  however,  compromise  or  settle  such  cases.  (T. 
D.,  21270,  1899.) 

Remission. 

The  Secretary  of  the  Treasury  has  authority  to  remit  or  mitigate  fines, 
penalties,  or  forfeitures  and  to  remove  disabilities  before  or  after  judgment  or 
decree,  and  until  the  money  is  actually  paid  into  the  Treasury.  (United 
States  v.  Morris,  10  Wheat.,  246;  sees.  5292,  5293,  R.  S.) 

The  power  to  remit  penalties  is  intrusted  to  the  Secretary  of  the  Treasury 
alone,  and  there  is  no  appeal  from  his  decision. 


400  APPENDIX. 

l\mlons. 

The  President's  power  under  the  Constitution  to  grant  pardons  (Art.  II.  Bee. 
•_'  includes  the  power  of  remitting  fines,  penalties,  and  forfeitures.  (Ex  parte 
Garland,  4  Wall.,  333.) 

Effecl  of  pardon.  (Weimer  r.  Reynolds,  24  Int.  Rev,  Rec,  372;  Knote  r. 
United  States,  95  V.  S.,  L49;  24  Int.  Rev.  Her..  4;  United  States  v.  BfcKee,  23 
ibid.,  338;  Fed.  Cas.  No.  L5,688 

Pardon  of  officer  bar  to  an  action  on  official  bond  assigning  same  act  as  a 
breach.     (United  States  v.  Cullert-.n.  21  Int.  Rev.  Roe..  »;- 

Pardon  releases  property  seized  for  same  offense.  (Osborn  r.  United  States, 
91  l'.  S.  (1  Otto),  474.) 

Does  not  relieve  from  tax.  (United  States  v.  Roelle  et  al.,  24  Int.  Rev.  Roc., 
332.) 

A  pardon  is  not  complete  until  delivery.  (In  re  Moses  De  Puy,  10  Int.  Rev. 
Roe.,  34.) 

An  providing  for  parole  of  I'nited  States  prisoners.  Act  of  June  25,  1910. 
(36  Stat..  S19.) 

Employment  of  attorneys  or  counsel. 

Sec.  189.  No  horn  I  of  a  department  shall  employ  attorneys  or  coun- 
sel at  the  expense  of  the  United  States,  but  when  in  need  of  counsel  or 
advice  shall  call  upon  the  Department  of  Justice,  the  officers  of  which 
shall  attend  to  the  same. 

Opinions  of  the  Attorney  General;  the  effect  of  his  advice.  (5  Op.  Attv. 
Gen..  97;  6  ibid.,  334;  7  ibid.,  699;  9  ibid.,  37.) 

Questions  of  pure  law  actually  arising  in  the  administration  of  the  Treasury 
Department,  and  requiring  the  personal  consideration  of  the  Secretary,  may  be 
referred  to  the  Solicitor  of  the  Treasury  or  to  the  Attorney  General,  if  referred 
to  the  latter,  however,  his  answer  should  be  regarded  by  the  department  as 
law  until  withdrawn  by  him  or  overruled  by  the  courts.  (20  Op.  Attv.  Gen., 
655.) 

A  request  for  an  opinion  must  not  relate  to  a  mere  moot  question.  (21  Op. 
Attv.  Gen.,  509.) 

There  should  be  a  case  actually  arising.  (24  Op.  Attv.  Gen.,  59;  27  ibid., 
49.) 

Attorney  General  to  provide  counsel  on  Investigation  of  claims. 

Sec.  364.  Whenever  the  head  of  a  Department  or  Bureau  gives  the 
Attorney-General  due  notice  that  the  interests  of  the  United  States  re- 
quire the  service  of  counsel  upon  the  examination  of  witnesses  touch- 
ing any  claim,  or  upon  the  legal  investigation  of  any  claim,  pending 
in  such  Department  or  Bureau,  the  Attorney-General  shall  provide 
for  such  service. 

AN  ACT  To  authorize   the  commencement  and  conduct  of  legal  proceedings  under 
the  direction  of  the  Attorney  General,  approved,  June  30,1906.     (34  Stat.,  816.) 

That  the  Attorney-General  or  any  officer  of  the  Department  of 

Justice,  or  any  attorney  or  counselor  specially  appointed  by  the 
Attorney-General  under  any  provision  of  law,  may,  when  thereunto 
specifically  directed  by  the  Attorney-General,  conduct  any  kind  of 
legal  proceeding,  civil  or  criminal,  including  grand  jury  proceedings 
and  proceedings  before  committing  magistrates,  which  district  attor- 
neys now  are  or  hereafter  may  be  by  law  authorized  to  conduct, 
whether  or  not  he  or  they  be  residents  of  the  district  in  which  such 
proceeding  is  brought. 


APPENDIX.  401 

Duties  of  district  attorneys  to  prosecute  and  to  appear  for  collectors,  etc. 

Sec.  771.  It  shall  be  the  duty  of  every  district  attorney  to  prose- 
cute, in  his  district,  all  delinquents  for  crimes  and  offenses  cognizable 
under  the  authority  of  the  United  States,  and  all  civil  actions  in 
which  the  United  States  are  concerned,  and,  unless  otherwise  in- 
structed by  the  Secretary  of  the  Treasury,  to  appear  in  behalf  of  the 
defendants  in  all  suits  or  proceedings  pending  in  his  district  agamst 
collectors,  or  other  officers  of  the  revenue,  for  any  act  done  by  them 
or  for  the  recovery  of  any  money  exacted  by  or  paid  to  such  officers, 
and  by  them  paid  into  the  Treasury. 

"Infamous "  crimes  can  not  be  prosecuted  by  information.  "No  person  shall 
be  held  to  answer  for  a  capital  or  otherwise  infamous  crime,  unless  on  a  pre- 
sentment or  indictment  of  a  grand  jury,  except  in  cases  arising  in  the  land  or 
naval  forces,"  etc.     (Constitution,  fifth  amendment.) 

Imprisonment  at  hard  labor  for  a  term  of  years  is  an  infamous  punishment. 
(Wilson  ex  parte,  114  V.  S.,  417;  31  Int.  Rev.  Rec,  224.) 

A  crime  punishable  by  imprisonment  in  a  state's  prison  or  penitentiary  with 
or  without  hard  labor  is  an  "infamous"  crime.  (Mackin  v.  United  States,  117 
U.  S.,  348.) 

It  is  the  duty  of  a  district  attorney  to  prosecute  suits  to  enforce  against  certain 
property  the  statutory  lien  for  internal-revenue  taxes.  (Bliss  v.  U.  S.,  37  Fed. 
Rep.,  191.) 

Duty  of  Government  to  defend  its  officers  when  sued  for  doing  what  the  law 
requires.     (9  Op.  Atty.  Gen.,  52.) 

The  act  of  March  3,  1887  (24  Stat.,  505),  providing  for  the  bringing  of  suits 
against  the  Government  in  the  United  States  district  and  circuit  courts,  makes 
it  the  duty  of  the  district  attorney  to  appear  and  defend  the  interests  of  the 
Government  in  such  suits  and  within  sixty  days  after  the  service  of  petition 
upon  him  to  file  a  plea,  answer,  or  demurrer  on  the  part  of  the  Government, 
and  notice  of  any  set-off  or  counter  claim. 

Suits  by  or  against  officers  not  to  abate  on  their  death,  resignation,  or  expira- 
tion of  their  term  of  office.     (Act  of  Feb.  8,  1899,  30  Stat.,  822. ) 

By  the  acts  of  June  27,  1898,  and  July  1,  1898,  the  right  of  Government  offi- 
cers to  bring  suits  in  the  circuit  and  district  courts  for  their  fees  or  salaries 
was  repealed,  thus  removing  what  had  been  found  to  be  a  serious  difficulty  in 
the  workings  of  the  act  of  March  3,  1887. 

District  attorneys  to  report  to  Commissioner  of  Internal  Revenue. 

Sec.  774.  When  any  suit  or  proceeding  arising  under  the  internal- 
revenue  laws,  to  which  the  United  States  are  party,  or  any  suit  or  pro- 
ceeding agamst  a  collector  or  other  officer  of  the  internal  revenue, 
wherein  a  district  attorney  appears,  is  commenced,  the  attorney  for 
the  district  in  which  it  is  brought  shall  immediately  report  to  the 
Commissioner  of  Internal  Revenue  the  full  particulars  relating  to  the 
same;  and  he  shall,  immediately  after  the  end  of  each  term  of  the 
court  in  which  such  suit  or  proceeding  is  pending,  forward  to  the  said 
Commissioner  a  full  and  particular  statement  of  its  condition. 

Duty  of  commissioner  to  make  regulations  for  observance  of  district  attor- 
neys and  marshals.     (Sec.  3215,  p.  111.) 
Regulations  No.  12,  revised. 

Duty  of  district  attorneys  as  to  prosecution  and  reports. 

Sec.  838.  It  shall  be  the  duty  of  every  district  attorney  to  whom 
any  collector  of  customs,  or  of  internal  revenue,  shall  report,  accord- 
ing to  law,  any  case  in  which  any  fine,  penalty,  or  forfeiture  has  been 
incurred  in  the  district  of  such  attorney  for  the  violation  of  any  law 
of  the  United  States  relating  to  the  revenue,  to  cause  the  proper  pro- 

72170°— 11 26 


402  APPENDIX. 

ceedings  to  be  commenced  and  prosecuted  without  delay,  for  the 
fines,  penalties,  and  forfeitures  in  such  case  provided,  unless,  upon 
inquiry  and  examination,  he  shall  decide  that  such  proceedings  can- 
not probably  be  sustained,  or  that  the  ends  of  public  justice  do  not 
require  that  such  proceedings  should  be  instituted;  in  which  case  he 
shall  report  the  facts  in  customs  cases  to  the  Secretary  of  the  Treasury, 
and  in  internal  revenue  cases  to  the  Commissioner  of  Internal  Rev- 
enue for  their  direction. 

******* 

That  portion  of  this  section  referring  to  compensation  of  district  attorneys  is 
omitted,  as  made  inoperative  by  the  act  of  May  28,  1896.     (29  Stat.,  178). 

Duty  of  collectors  to  report  violations  of  law  to  district  attorneys.  (Sec. 
3164,  p.  77.) 

Reports  of  marshals. — Marshals  are  required  to  report  proceedings  under 
process  issued  to  them  in  internal-revenue  cases.  (Regulations  No.  12,  revised, 
p.  17.) 

Instructions  to  report  status  of  judgment  debtors.     (T.  D.  703.) 

Warrants  of  arrest. 

Sec.  19.  [Act  of  May  28,  1896  (29  Stat.,  184),  reenacted  by  act  Mar. 
2, 1901  (31  Stat.,  956).}  *  *  *  Warrants  of  arrest  for  violations  of 
internal-revenue  laws  may  be  issued  by  United  States  commissioners 
upon  the  sworn  complaint  of  a  United  States  district  attorney,  assist- 
ant United  States  district  attorney,  collector  or  deputy  collector  of 
internal  revenue,  or  revenue  agent  or  private  citizen,  but  no  such  war- 
rant of  arrest  shall  be  issued  upon  the  sworn  complaint  of  a  private 
citizen  unless  first  approved  in  writing  by  a  United  States  district 
attorney.     *     *     * 

Under  the  act  of  May  28,  1896,  the  issue  of  a  warrant  upon  a  complaint 
made  by  a  field  deputy  marshal,  which  was  approved  by  the  district  attorney 
by  telephone,  even  though  subsequently  reduced  to  writing,  is  not  authorized. 
(VI  Comp.  Dec,  113.) 

Fees  of  United  States  marshals- — illegal  warrants.     (IV  Comp.  Dec,  338,  449.) 
Deputy  collectors  swearing  to  complaints.     (T.  D.  510.) 
Insufficiency  of  warrant.     (U.  S.  v.  Sapinkow,  90  Fed.  Rep.,  654.) 
"Warrant  must  particularly  name  or  describe  the  person.     (West  v.  Cabell, 
153  U.  S.,  85,  86.) 

Serving  John  Doe  warrants.     (16  Comp.  Dec,  891.) 

Arrest  of  persons  while  operating  illicit  distillery.  (Sec.  9,  act  Mar.  1,  1879, 
p.  175.) 

Arrests  without  warrant.     (14  Int.  Rev.  Rec,  27;    24  ibid.,  349,  378.) 
A  marshal  has  the  right  to  arrest  upon  visible  evidence  of  crime.     (U.  S.  v. 
Fullehart,  106  Fed.  Rep.,  911.) 

*  *  *  Act  of  August  18, 1894,  sundry  civil  appropriation  act  (28 
Stat.,  /+16).  And  hereafter  no  part  of  any  money  appropriated  to  pay 
any  fees  to  the  United  States  commissioners,  marshals,  or  clerks  shall 
be  used  for  any  warrant  issued  or  arrest  made,  or  other  fees  in  prose- 
cutions under  the  internal  revenue  laws,  unless  said  fees  have  been 
taxed  against  and  collected  from  the  defendant,  or  unless  the  prosecu- 
tion has  been  commenced  upon  a  sworn  complaint  setting  forth  the 
facts  constituting  the  offense  and  alleging  them  to  be  within  the  per- 
sonal knowledge  of  the  afliant,  or  upon  a  sworn  complaint  by  a  United 
States  district  attorney,  collector,  or  deputy  collector  of  internal  reve- 
nue or  revenue  agent,  setting  forth  the  facts  upon  information  and 
belief,  and  approved  either  before  or  after  such  arrest  by  a  circuit  or 
district  judge  or  the  attorney  of  the  United  States  in  the  district  where 
the  offense  is  alleged  to  have  been  committed  or  the  indictment  is 
found: 


APPENDIX.  403 

Provided,  That  it  shall  be  the  duty  of  the  marshal,  his  deputy,  or 
other  officer  who  may  arrest  a  person  charged  with  any  crime  or 
offense,  to  take  the  defendant  before  the  nearest  circuit  court  commis- 
sioner or  the  nearest  judicial  officer  having  jurisdiction  under  existing 
laws  for  a  hearing,  commitment  or  taking  bail  for  trial,  and  the  officer 
or  magistrate  issuing  the  warrant  shall  attach  thereto  a  certified  copy 
of  the  complaint;  and  upon  the  arrest  of  the  accused,  the  return  of  the 
warrant,  with  a  copy  of  the  complaint  attached,  shall  confer  jurisdic- 
tion upon  such  officer  as  fully  as  if  the  complaint  had  originally  been 
made  before  him,  and  no  mileage  shall  be  allowed  any  officer  violating 
the  provisions  hereof. 

Construction  of  statute.     (U.  S.  v.  Puleston,  106  Fed.  Rep.,  294.) 

Clerks  of  courts  to  report  to  Commissioner  as  to  all  moneys  paid  into  court  in  internal-revenue 

cases,  etc. 

Sec.  797.  [As  amended  by  sec.  2,  act  of  Mar.  1, 1879  (20  Stat,  327).] 
Every  clerk  of  a  circuit  or  district  court  shall,  within  thirty  days  after 
the  adjournment  of  each  term  thereof,  forward  to  the  Solicitor  of  the 
Treasury  a  list  of  all  judgments  and  decrees,  to  which  the  United  States 
are  parties,  which  have  been  entered  in  said  court,  respectively,  dur- 
ing such  term,  showing  the  amount  adjudged  or  decreed  in  each  case, 
for  or  against  the  United  States,  and  the  term  to  which  execution 
thereon  will  be  returnable.  He  shall  also,  at  the  close  of  each  quarter,  or 
within  ten  days  thereafter,  report  to  the  Commissioner  of  Internal  Revenue 
all  moneys  paid  into  court  on  account  o~f  cases  arising  under  the  internal- 
revenue  laws,  as  well  as  all  moneys  paid  on  suits  on  bonds  of  collectors  of 
internal  revenue.  The  report  shall  show  the  name  and  nature  of  each  case, 
the  date  of  payment  into  court,  the  amount  paid  on  account  of  debt,  tax, 
or  penalty,  and  also  the  amount  on  account  of  costs.  If  such  money,  or 
any  portion  thereof,  has  been  paid  by  the  clerk  to  any  internal-revenue 
officer  or  other  person,  the  report  shall  show  to  whom  each  of  such  pay- 
ments was  made;  ami  if  to  an  internal-revenue  officer,  it  shall  be  accom- 
panied by  the  receipt  of  such  officer. 

Section  5,  act  of  February  22,  1875  (18  Stat.,  334),  provides  that  if  any  clerk 
of  any  district  or  circuit  court  of  the  United  States  shall  willfully  refuse  or 
neglect  to  make  any  report  or  other  document  required  by  law  to  be  by  him 
made,  or  shall  willfully  refuse  or  neglect  to  forward  any  such  report  or  docu- 
ment to  the  department,  officer,  or  person  to  whom  by  law  the  same  should  be 
forwarded,  the  clerk  so  offending  shall  be  removed  from  office  and  shall  not  be 
eligible  to  any  appointment  as  clerk  or  deputy  clerk  for  the  period  of  two  years 
next  after  such  removal. 

Section  6  of  the  same  act  also  provides  additional  punishment,  by  a  fine  not 
exceeding  $1,000  or  by  imprisonment  not  exceeding  one  year,  in  the  discretion 
of  the  court. 

Clerk  of  court  failing  to  deposit  moneys,  etc.  (Sec.  99  of  the  criminal  code, 
act  Mar.  4,  1909,  35  Stat.,  1088.) 

Clerks  of  court  to  keep  indices  of  judgment  records.  (See  act  Aug.  1,  1888, 
p.  393.) 

Clerks  are  instructed  in  all  cases  in  the  several  courts  arising  under  the 
internal-revenue  laws,  where  moneys  are  recovered  and  paid  in  for  the  United 
States,  to  pay  over  such  moneys,  including  costs,  to  the  collectors  of  internal 
revenue  under  the  provisions  of  section  3216,  R.  S. 

Collectors  will  furnish  the  clerks  with  receipts  in  duplicate  on  Form  No.  540, 
the  original  to  be  forwarded  to  the  Commissioner  with  the  clerk's  quarterly 
report  (Form  158),  the  duplicate  to  be  retained  by  the  clerk. 

(See  circular  to  clerks  of  United  States  courts  issued  by  the  Attorney  General 
Apr.  20,  1898,  T.  D.  No.  19306,  1898;  also,  Instructions  to  attorneys,  clerks, 
etc.,  by  the  Department  of  Justice,  Apr.  1,  1904,  T.  D.  754;  Regulations,  No.  12, 
rev.  Apr.  18,  1904,  p.  21.) 


404  APPENDIX. 

Sec.  6.  [Act  of  May  28,  1896  (29  Stat.,  178),  Legislative,  executive, 
and  judicial  appropriation  act.]  That,  on  and  after  the  first  day  of 
July,  eighteen  hundred  and  ninety-six,  all  fees  and  emoluments 
authorized  by  law  to  be  paid  to  United  States  district  attorneys  and 
United  States  marshals  shall  be  charged  as  heretofore,  and  shall  be 
collected,  as  far  as  possible,  and  paid  to  the  Clerk  of  the  court  having 
jurisdiction,  and  by  him  covered  into  the  Treasury  of  the  United 
States. 


Chapter  2. 


Duties  of  officers  charged  with  receiving  or  disbursing  public  moneys — 
Penalties  for  embezzlement  and  for  official  misconduct — Proceedings 
against  delinquent  officers — Evidence — Transcripts,  etc. 

Moneys  to  be  deposited  without  deduction. 

Sec.  3617.  The  gross  amount  of  all  moneys  received  from  whatever 
source  for  the  use  of  the  United  States,  except  as  otherwise  provided 
hi  the  next  section,  shall  be  paid  by  the  officer  or  agent  receiving  the 
same  into  the  Treasury,  at  as  early  a  day  as  practicable,  without  any 
abatement  or  deduction  on  account  of  salary,  fees,  costs,  charges, 
expenses,  or  claim  of  any  description  whatever.  But  nothing  herein 
shall  affect  any  provision  relating  to  the  revenues  of  the  Post-Office 
Department. 

The  next  section  relates  to  the  proceeds  of  sales  of  material.  Ill  Comp. 
Dec.  149. 

It  seems  that  no  express  authority  has  been  given  the  executive  departments 
to  sell  old  or  disused  material  and  supplies.  Such  practice  appears  to  have 
grown  up,  however,  for  reasons  of  economy,  and  is  apparently  recognized  in 
the  provisions  of  sections  197  and  3618  of  the  Revised  Statutes,  which  provide 
for  the  accounting  by  Government  officers  for  moneys  received  from  the  sale  of 
old  material  and  supplies.     (28  Op.  Atty.  Gen.,  203.) 

Section  3619  provides  that  "Every  officer  or  agent  who  neglects  or  refuses 
to  comply  with  the  provisions  of  section  3617  shall  be  subject  to  be  removed 
from  office,  and  to  forfeit  to  the  United  States  any  share  or  part  of  the  moneys 
withheld,  to  which  he  might  otherwise  be  entitled." 

(15  Op.  Atty.  Gen.,  387.     24  Int.  Rev.  Rec,  130;  26  id.,  230.) 

(See  sections  3210,  3216,  and  3450  R.  S.,  pp.  107,  111,  357.  XVI  Comp.  Dec, 
309.) 

[Extract  from  sundry  civil  appropriation  act  for  the  fiscal  year  ending  June  30,  1909,  approved 

May  27,  1908  (35  Stat.,  325).] 

After  June  thirtieth,  nineteen  hundred  and  eight,  collectors  of  internal 
revenue  shall  pay  daily  into  the  Treasury  of  the  United  States,  under  instruc- 
tions of  the  Secretary  of  the  Treasury,  the  gross  amounts  of  all  collections  of 
whatever  nature  made,  by  authority  of  law,  and  the  same  shall  be  covered  into 
the  Treasury  as  internal-revenue  collections.  (T.  D.  1373,  Circular  No.  725, 
June  5,  1908.) 

Duty  of  disbursing  officers. 

Sec.  3620.  [As  amended  by  the  act  of  Feb.  27,  1877  (19  Stat,  240).] 
It  shall  be  the  duty  of  every  disbursing  officer  having  any  public 
money  intrusted  to  him  for  disbursement,  to  deposit  the  same  with 
the  Treasurer  or  some  one  of  the  assistant  treasurers  of  the  United 
States,  and  to  draw  for  the  same  only  as  it  may  be  required  for  pay- 
ments to  be  made  by  him  in  pursuance  of  law  and  draw  for  the  same 
only  in  favor  of  the  persons  to  whom  payment  is  made;  and  all  transfers 
from  the  Treasurer  of  the  United  States  to  a  disbursing  officer  shall 
be  by  draft  or  warrant  on  the  Treasury  or  an  assistant  treasurer  of 


APPENDIX.  405 

the  United  States.  In  places,  however,  where  there  is  no  treasurer 
or  assistant  treasurer,  the  Secretary  of  the  Treasury  may,  when  he 
deems  it  essential  to  the  public  interest,  specially  authorize  in  writing 
the  deposit  of  such  public  money  in  any  other  public  depository,  or, 
in  writing,  authorize  the  same  to  be  kept  in  any  other  maimer,  and 
under  such  rules  and  regulations  as  he  may  deem  most  safe  and 
effectual  to  facilitate  the  payments  to  public  creditors. 

See  section  87  of  the  Criminal  Code,  act  of  March  4,  1909  (35  Stat.,  1105,) 
page  409,  providing  penalty  for  unlawfully  depositing. 

Checks  of  disbursing  officers.     (15  Op.  Atty.  Gen.,  288.) 

Depositories  to  be  designated  by  Secretary,  section  3211,  page  108. 

Regulation  for  the  deposit  of  public  moneys.    (Dept.  Cir.  No.  47,  Apr.  5, 1905). 

Public  moneys  and  official  checks  of  United  States  disbursing  officers.  (Dept. 
Cir.  No.  102,  Dec.  7,  1906;  Dept.  Cir.  No.  125,  Aug.  14,  1897,  Reg.  No.  2, 
revised,  p.  93;  Dept.  Cir  No.  17,  Mar.  19,  1908,  Reg.  No.  2  revised,  p.  96.) 

Deposit  of  unexpended  balances  of  annual  appropriations,  etc.  (Dept.  Cir. 
No.  133,  Dec.  15,  1903.) 

Every  person  having  moneys  of  the  United  States  must  pay  to  Treasurer,  etc.,  and  take  receipt. 

Sec.  3621.  [As  amended  by  sec.  5,  act  May  28,  1896  (29  Stat,  140).] 
Every  person  who  shall  have  moneys  of  the  United  States  in  his  hands 
or  possession,  and  disbursing  officers  having  moneys  in  their  posses- 
sion not  required  for  current  expenditure,  shall  pay  the  same  to  the 
Treasurer  and  Assistant  Treasurer,  or  some  public  depositary  of  the 
United  States,  without  delay,  and  in  all  cases  within  thirty  days  of 
their  receipt. 

And  the  Treasurer,  the  Assistant  Treasurer,  or  the  public  depositary 
shall  issue  duplicate  receipts  for  the  moneys  so  paid,  transmitting 
forthwith  the  original  to  the  Secretary  of  the  Treasury,  and  delivering 
the  duplicate  to  the  depositor. 

The  Secretary  of  the  Treasury  prescribed  regulations  as  to  "proper  dispo- 
sition of  certificates  of  deposit."     (Dept.  Cir.  No.  46,  July  1,  1907.) 

Deposit  of  public  monevs.     (Cir.  No.  47,  Apr.  5,  1905.) 

See  section  91,  Criminal" Code,  act  March  4, 1909  (35  Stat.,  1105),  page  410,  pro- 
viding penalty  for  failure  to  deposit  as  required. 

Sec.  4.  [Act  of  Aug.  30,  1890  (26  Stat.,  371),  sundry  civil  appropria- 
tion act.]  That  hereafter  all  disbursing  officers  of  the  United  States 
shall  render  their  accounts  quarterly  *  *  *  but  the  Secretary 
of  the  Treasury  may  direct  any  or  all  such  accounts  to  be  rendered 
more  frequently  when  in  his  judgment  the  public  interest  may 
require. 

Accounts  to  be  rendered. 

^  Sec.  3622.  [As  amended  by  sec.  12,  actofJulySl,  1894  (28 Stat., 209).] 
Every  officer  or  agent  of  the  United  States  who  receives  public  money 
which  he  is  not  authorized  to  retain  as  salary,  pay,  or  emolument, 
shall  render  his  accounts  monthly.  Such  accounts,  with  the  vouchers 
necessary  to  the  correct  and  prompt  settlement  thereof,  shall  be  sent 
by  mail,  or  otherwise,  to  the  Bureau  to  which  they  pertain,  within  ten 
days  after  the  expiration  of  each  successive  month,  and,  after  exam- 
ination there,  shall  be  passed  to  the  proper  accounting  officer  of  the 
Treasury  for  settlement.  Disbursing  officers  of  the  Navy  shall, 
however,  render  their  accounts  and  vouchers  direct  to  the  proper 
accounting  officer  of  the  Treasury.  In  case  of  the  non-receipt  at  the 
Treasury,  or  proper  Bureau,  of  any  accounts  within  a  reasonable  and 
proper  time  thereafter,  the  officer  whose  accounts  are  in  default  shall 


406  APPENDIX. 

be  required  to  furnish  satisfactory  evidence  of  having  complied  with 
the  provisions  of  this  section.  *  *  *  Nothing  herein  contained 
shall,  however,  be  construed  to  restrain  the  heads  of  any  of  the 
Departments  from  requiring  such  other  returns  or  reports  from  the 
officer  or  agent,  subject  to  the  control  of  such  heads  of  Departments, 
as  the  public  interest  may  require. 

Collectors  of  internal  revenue  shall  render  their  revenue  accounts  quarterly. 
(Act  May  27,  1908,  35  Stat.,  325.) 

Collectors,  acting  as  disbursing  agents,  report  transactions  of  funds  advanced 
to  them  from  the  several  appropriations  on  Form  44.  This  report  is  rendered 
monthly,  and  under  section  12  of  the  act  of  July  31,  1894,  should  be  mailed  or 
otherwise  sent  to  the  Commissioner  of  Internal  Revenue  within  ten  days  after 
the  end  of  the  month  to  which  it  relates.     (Reg.  No.  2,  revised,  p.  68.) 

See  section  90,  Criminal  Code,  act  March  4,  1909  (35  Stat.,  1105),  page  410, 
providing  penalty  for  failure  to  render  accounts. 

The  provision  giving  the  Secretary  of  the  Treasury  power  in  particular  cases 
to  extend  the  time  prescribed  for  the  rendition  of  accounts  does  not  authorize 
him  to  institute  a  new  system  of  rendering  accounts.     (16  Op.  Atty.  Gen.,  222.) 

Rendition  of  accounts.     (19  Op.  Atty.  Gen.,  557;  36  Int.  Rev.  Rec,  173.) 

The  Dockery  commission  was  organized  by  the  act  of  March  3,  1893. 

The  "Dockery  bill"  was  included  in  the  legislative,  executive,  and  judicial 
appropriation  Act  for  the  fiscal  year  1895.  (Act  of  July  31,  1894,  28  Stat.,  162.) 
The  act  went  into  effect  October  1,  1894,  and  provided  that  hereafter  the  First 
Comptroller  shall  be  known  as  the  Comptroller  of  the  Treasury. 

It  abolished  the  office  of  Commissioner  of  Customs,  Second  Comptroller,  and 
other  offices,  and  modified  the  method  of  settlement  of  accounts. 

The  act  prescribes  the  powers  and  duties  of  the  accounting  officers  of  the 
Treasury  Department  (28  Stat.,  205-211).  (See  Digest  of  the  Decisions  of  the 
Comptroller  of  the  Treasury,  1902.) 

Section  22  contains  the  following  paragraph: 

"It  shall  also  be  the  duty  of  the  heads  of  the  several  Executive  Departments 
and  of  the  proper  officers  of  other  Government  establishments,  not  within  the 
jurisdiction  of  any  Executive  Department,  to  make  appropriate  rules  and 
regulations  to  secure  a  proper  administrative  examination  of  all  accounts  sent 
to  them,  as  required  by  section  12  of  this  act,  before  their  transmission  to  the 
Auditors,  and  for  the  execution  of  other  requirements  of  this  act  in  so  far  as  the 
same  relate  to  the  several  departments  or  establishments." 

Regulations  governing  the  revision,  by  the  Comptroller  of  the  Treasury,  of 
accounts  settled  by  the  Auditors.  (Dept.  Cir.  87,  Apr.  25,  1895;  Treasury 
Bookkeeping,  Dept.  Cir.  38,  June  17,  1907;  Dept.  Cir.  56,  July  14,  1908.) 

Transmittal  of  accounts. 

Sec.  12.  [Act  of  July  31,  1894  (28  Stat.,  162),  as  amended  by  sec.  4, 
act  of  May  28,  1896  (29  Stat.,  140).]  All  monthly  accounts  shall  be 
mailed  or  otherwise  sent  to  the  proper  officer  at  Washington  within 
ten  days  after  the  end  of  the  month  to  which  they  relate,  and  quar- 
terly and  other  accounts  within  twenty  days  after  the  period  to 
which  they  relate,  and  shall  be  transmitted  to  and  received  by  the 
Auditors  within  twenty  days  of  their  actual  receipt  at  the  proper 
office  in  Washington  in  the  case  of  monthly,  and  sixty  days  in  the 
case  of  quarterly  and  other  accounts.  Should  there  be  any  delin- 
quency in  this  regard  at  the  time  of  the  receipt  by  the  Auditor  of  a 
requisition  for  an  advance  of  money,  he  shall  disapprove  the  requisi- 
tion, which  he  may  also  do  for  other  reasons  arising  out  of  the  condi- 
tion of  the  oflicer's  accounts  for  whom  the  advance  is  requested ;  but 
the  Secretary  of  the  Treasury  may  overrule  the  Auditor's  decision  as 
to  the  sufficiency  of  these  latter  reasons: 

Provided,  That  the  Secretary  of  the  Treasury  shall  prescribe  suitable 
rules  and  regulations,  and  may  make  orders  in  particular  cases,  relax- 
ing the  requirements  of  mailing  or  otherwise  sending  accounts,  as 


APPENDIX.  407 

aforesaid,  within  ten  or  twenty  days,  or  waiving  delinquency,  in 
such  cases  only  in  which  there  is,  or  is  likely  to  be,  a  manifest  physical 
difficulty  in  complying  with  the  same,  it  being  the  purpose  of  this 
provision  to  require  the  prompt  rendition  of  accounts  without  regard 
to  the  mere  convenience  of  the  officers,  and  to  forbid  the  advance  of 
money  to  those  delinquent  in  rendering  them: 

Provided  further,  That  should  there  be  a  delay  by  the  administra- 
tive Departments  beyond  the  aforesaid  twenty  or  sixty  days  in  trans- 
mitting accounts,  an  order  of  the  President,  or  in  the  event  of  the 
absence  from  the  seat  of  Government,  or  sickness  of  the  President, 
an  order  of  the  Secretary  of  the  Treasury,  in  the  particular  case  shall 
be  necessary  to  authorize  the  advance  of  money  requested: 

And  provided  further,  That  this  section  shall  not  apply  to  accounts 
of  the  postal  revenue  and  expenditures  therefrom,  which  shall  be 
rendered  as  now  required  by  law. 

The  Secretary  of  the  Treasury  shall,  on  the  first  Monday  of  January 
in  each  year,  make  report  to  Congress  of  such  officers  and  administra- 
tive departments  and  offices  of  the  Government  as  were,  respectively, 
at  any  time  during  the  last  preceding  fiscal  year  delinquent  in  render- 
ing or  transmitting  accounts  to  the  proper  offices  in  Washington  and 
the  cause  therefor,  and  in  each  case  indicating  whether  the  delin- 
quency was  waived,  together  with  such  officers,  including  postmasters 
and  officers  of  the  Post-Office  Department,  as  were  found  upon  final 
settlement  of  their  accounts  to  have  been  indebted  to  the  Government, 
with  the  amount  of  such  indebtedness  in  each  case,  and  who,  at  the 
date  of  making  report,  had  failed  to  pay  the  same  into  the  Treasury 
of  the  United  States.     *     *     * 

Instructions  to  carry  into  effect  the  recommendations  of  the  Committee  on 
Department  .Methods.     (Dept.  Cir.  52,  July  29,  1907.) 

Circular  relative  to  transmittal  of  accounts,  Department  No.  114,  dated 
August  16,  1894. 

Transmittal  of  accounts  and  advances  of  funds.  (Dept.  Cir.  25,  T.  D. 
18925,  1898.) 

Distinct  accounts  required  according  to  appropriation. 

Sec.  3623.  All  officers,  agents,  or  other  persons,  receiving  public 
moneys,  shall  render  distinct  accounts  of  the  application  thereof, 
according  to  the  appropriation  under  which  the  same  may  have  been 
advanced  to  them. 

Suits  to  recover  money  from  officers  regulated. 

Sec.  3624.  Whenever  any  person  accountable  for  public  money, 
neglects  or  refuses  to  pay  into  the  Treasury  the  sum  or  balance 
reported  to  be  due  to  the  United  States,  upon  the  adjustment  of  his 
account,  the  (First)  Comptroller  of  the  Treasury  shall  institute  suit 
for  the  recovery  of  the  same,  adding  to  the  sum  stated  to  be  due  on 
such  account,  the  commissions  of  the  delinquent,  which  shall  be  for- 
feited in  every  instance  where  suit  is  commenced  and  judgment 
obtained  thereon,  and  an  interest  of  six  per  centum  per  annum,  from 
the  time  of  receiving  the  money  until  it  shall  be  repaid  into  the 
Treasury. 

Duties  of  First  Comptroller  conferred  on  Comptroller  of  Treasury  (Dockery 
bill),  act  of  July  31,  1894  (28  Stat.,  162). 


408  APPENDIX. 

Distress  warrant. 

Sec.  3625  [as  amended  by  sec.  4,  act  July  31,  1894  (28  Stat.,  162)]. 
Whenever  any  collector  of  the  revenue,  receiver  of  public  money,  or 
other  officer  who  has  received  the  public  money  before  it  is  paid  into 
the  Treasury  of  the  United  States,  fails  to  render  his  account,  or  pay 
over  the  same  in  the  manner  or  within  the  time  required  by  law,  it 
shall  be  the  duty  of  the  proper  Auditor  to  cause  to  be  stated  the 
account  of  such  officer,  exhibiting  truly  the  amount  due  to  the  United 
States,  and  to  certify  the  same  to  the  Solicitor  of  the  Treasury,  who 
shall  issue  a  warrant  of  distress  against  the  delinquent  officer  and  his 
sureties,  directed  to  the  marshal  of  the  district  in  which  such  officer 
and  his  sureties  reside.  Where  the  officer  and  his  sureties  reside  in 
different  districts,  or  where  they,  or  either  of  them,  reside  in  a  district 
other  than  that  in  which  the  estate  of  either  may  be,  which  it  is 
intended  to  take  and  sell,  then  such  warrant  shall  be  directed  to  the 
marshals  of  such  districts,  respectively. 

Section  3217,  page  112. 

Proceedings  by  distress  warrant  have  not  been  resorted  to  for  many  years. 
The  remedy  by  suit  on  bond  is  deemed  preferable. 

Failure  of  disbursing  officer  to  account — Duty  thereupon  of  Auditor  and  Solicitor  of  Treasury. 

Sec.  3633  [as  amended  by  sec.  4,  act  of  July  81,1894  (28  Stat,  162)]. 
Whenever  any  officer  employed  in  the  civil,  military,  or  naval  service 
of  the  Government,  to  disburse  the  public  money  appropriated  for 
those  branches  of  the  public  service,  respectively,  fails  to  render  his 
accounts,  or  to  pay  over,  in  the  manner  and  in  the  times  required  by 
law,  or  by  the  regulations  of  the  Department  to  which  he  is  account- 
able, &nj  sum  of  money  remaining  in  his  hands,  it  shall  be  the  duty  of 
the  proper  Auditor,  as  the  case  may  be,  who  shall  be  charged  with  the 
revision  of  the  accounts  of  such  officer,  to  cause  to  be  stated  and 
certified  the  account  of  such  delinquent  officer  to  the  Solicitor  of  the 
Treasury,  who  is  hereby  authorized  and  required  immediately  to 
proceed  against  such  delinquent  officer,  in  the  manner  directed  in  the 
six  preceding  sections. 

The  *ix  preceding  sections  referred  to,  viz,  sections  3627,  3628,  3629,  3630, 
3631,  3632,  relate  to  proceedings  by  warrant  of  distress,  not  usually  resorted  to. 
See  section  90,  act  of  March  4, 1909  (35  Stat.,  1105,)  page  410. 

Rights  of  United  States  reserved. 

Sec.  3638.  Nothing  contained  in  the  provisions  of  this  Title  relating 
to  distress-warrants  shall  be  construed  to  take  away  or  impair  any 
right  or  remedy  which  the  United  States  might  have,  by  law,  for  the 
recovery  of  taxes,  debts,  or  demands. 

Duties  of  officers  as  custodians  of  public  moneys  to  safely  keep,  etc. 

Sec.  3639.  The  Treasurer  of  the  United  States,  all  assistant  treas- 
urers, and  those  performing  the  duties  of  assistant  treasurer,  all  col- 
lectors of  the  customs,  all  surveyors  of  the  customs,  acting  also  as 
collectors,  all  receivers  of  public  moneys  at  the  several  land-offices,  all 
postmasters,  and  all  public  officers  of  whatsoever  character,  are 
required  to  keep  safely,  without  loaning,  using,  depositing  in  banks,  or 
exchanging  for  other  funds  than  as  specially  allowed  by  law,  all  the 
public  money  collected  by  them.,  or  otherwise  at  any  time  placed  in 


APPENDIX.  409 

their  possession  and  custody,  till  the  same  is  ordered,  by  the  proper 
Department  or  officer  of  the  Government,  to  be  transferred  or  paid 
out;  and  when  such  orders  for  transfer  or  payment  are  received, 
faithfully  and  promptly  to  make  the  same  as  directed,  and  to  do  and 
perform  all  other  duties  as  fiscal  agents  of  the  Government  which 
may  be  imposed  by  any  law,  or  by  any  regulation  of  the  Treasury 
Department  made  in  conformity  to  law. 

The  President  is  authorized,  if  in  his  opinion  the  interest  of  the 
United  States  requires  the  same,  to  regulate  and  increase  the  sum  for 
which  bonds  are,  or  may  be,  required  by  law,  of  all  district  attorneys, 
collectors  of  customs,  naval  officers,  and  surveyors  of  customs,  navy 
agents,  receivers  and  registers  of  public  lands,  paymasters  in  the 
Army,  commissary-general,  and  by  all  other  officers  employed  in  the 
disbursement  of  the  public  moneys,  under  the  direction  of  the  War  or 
Navy  Departments. 

See  section?  80,  87,  88,  89,  90, 91,  and  92  of  the  Criminal  Code,  act  March  4, 1909 

(35  Stat.,  1105). 

Entry  to  be  kept  of  sums  received  and  of  transfer  and  payment. 

Sec.  3643.  All  persons  charged  by  law  with  the  safe-keeping,  trans- 
fer, and  disbursement  of  the  public  moneys,  other  than  those  con- 
nected with  the  Post-Office  Department,  are  required  to  keep  an 
accurate  entry  of  each  sum  received  and  of  each  payment  or  transfer. 

Embezzlement:  Penalty  for  requiring;  receipt  for  larger  sum  than  that  actually  paid. 

[§  5483.]  Sec.  86  [of  Criminal  Code,  act  of  Mar.  4,  1909  (35  Stat, 
1105)].  Whoever,  being  an  officer,  clerk,  agent,  employee,  or  other 
person  charged  with  the  payment  of  any  appropriation  made  by 
Congress,  shall  pay  to  any  clerk  or  other  employee  of  the  United 
States  a  sum  less  than  that  provided  by  law,  and  require  such  em- 
ployee to  receipt  or  give  a  voucher  for  an  amount  greater  than  that 
actually  paid  to  and  received  by  him,  is  guilty  of  embezzlement,  and 
shall  be  fined  in  double  the  amount  so  withheld  from  any  employee  of 
the  Government  and  imprisoned  not  more  than  two  years. 

Embezzlement:  Penalty    for   disbursing    officer   unlawfully    depositing,    converting,    loaning,    or 

transferring  public  money. 

[§  5488].  Sec.  87  [of  the  Criminal  Code,  act  of  Mar.  4, 1909  (35  Stat, 
1105)].  Whoever,  being  a  disbursing  officer  of  the  United  States, 
or  a  person  acting  as  such,  shall  in  any  manner  convert  to  his  own 
use,  or  loan  with  or  without  interest,  or  deposit  in  any  place  or  in 
any  manner,  except  as  authorized  by  law,  any  public  money  intrusted 
to  him;  or  shall,  for  any  purpose  not  prescribed  by  law,  withdraw 
from  the  Treasurer  or  any  assistant  treasurer,  or  any  authorized 
depositary,  or  transfer,  or  apply,  any  portion  of  the  public  money 
intrusted  to  him,  shall  be  deemed  guilty  of  an  embezzlement  of  the 
money  so  converted,  loaned,  deposited,  withdrawn,  transferred,  or 
applied,  and  shall  be  fined  not  more  than  the  amount  embezzled,  or 
imprisoned  not  more  than  ten  years,  or  both. 

See  section  3620,  page  404,  and  section  96  of  the  Criminal  Code,  act  of  March  4, 
1909  (35  Stat.,  1106)." 

Section  88  of  the  Criminal  Code,  act  of  March  4,  1909  (35  Stat.,  1105)  provides 
penalty  for  failure  of  Treasurer  of  United  States,  assistant  treasurer,  or  any- 
public  depositary  to  safely  keep  moneys  deposited. 


410  APPENDIX. 

Embezzlement:  Penalty  for  custodians  of  public  money  failing  to  safely  keep,  etc. 

[§  5490.]  Sec.  89  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1105)].  Every  officer  or  other  person  charged  by  any  Act  of 
Congress  with  the  safe-keeping  of  the  public  moneys,  who  shall  loan, 
use,  or  convert  to  his  own  use,  or  shall  deposit  in  any  bank  or  exchange 
for  other  funds,  except  as  specially  allowed  by  law,  any  portion  of 
the  public  moneys  intrusted  to  him  for  safe-keeping,  shall  be  guilty 
of  embezzlement  of  the  money  so  loaned,  used,  converted,  deposited, 
or  exchanged,  and  shall  be  fined  in  a  sum  equal  to  the  amount  of 
money  so  embezzled  and  imprisoned  not  more  than  ten  years. 

Collector  or  receiver  of  public  money  excused  from  paying  if  prevented  by 
act  of  God  or  the  public  enemy.     (United  States  v.  Thomas,  15  Wall.,  337.) 

Felonious  taking  or  carrying  away  of  public  moneys  in  the  custody  of  a 
receiver  without  fault  or  negligence  on  his  part,  not  any  defense  on  the  bond. 
(United  States  v.  Prescott,  3  How.,  578;  also  United  States  v.  Dashiell,  4  Wall., 
182;   Boyden  v.  United  States,  13  Wall.,  17.) 

Embezzlement:  Penalty  for  failure  of  officer  or  agent  to  render  accounts,  etc. 

[§  5491.]  Sec.  90  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1105)].  Every  officer  or  agent  of  the  United  States  who,  having 
received  public  money  which  he  is  not  authorized  to  retain  as  salary, 
pay,  or  emolument,  fails  to  render  his  accounts  for  the  same  as  pro- 
vided by  law  shall  be  deemed  guilty  of  embezzlement,  and  shall  be 
fined  in  a  sum  equal  to  the  amount  of  the  money  embezzled  and 
imprisoned  not  more  than  ten  years. 

Failure  to  make  reports.  See  section  101  of  the  Criminal  Code,  act  of  March  4, 
1909  (35  Stat.,  1107),  page 412. 

Penalty  for  falsification  of  accounts  and  making  false  reports,  by  persons  in 
the  employ  of  the  United  States.  Fine  of  not  more  than  $5,000,  or  imprison- 
ment not  more  than  ten  years,  or  both.     Act  of  March  4,  1911  (36  Stat.,  1355). 

Embezzlement:  Penalty  for  failure  to  deposit  as  required. 

[§  5492.]  Sec.  91  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1105)].  Whoever,  having  money  of  the  United  States  in  his 
possession  or  under  his  control,  shall  fail  to  deposit  it  with  the  Treas- 
urer, or  some  assistant  treasurer,  or  some  public  depositary  of  the 
United  States,  when  required  so  to  do  by  the  Secretary  of  the  Treas- 
ury, or  the  head  of  any  other  proper  department,  or  by  the  account- 
ing officers  of  the  Treasury,  shall  be  deemed  guilty  of  embezzlement 
thereof,  and  shall  be  fined  in  a  sum  equal  to  the  amount  of  money 
embezzled  and  imprisoned  not  more  than  ten  years. 

Record  evidence  of  embezzlement. 

[§  5494.]  Sec.  93  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1105)].  Upon  the  trial  of  any  indictment  against  any  person  for 
embezzling  public  money  under  any  provision  of  the  six  preceding 
sections,  it  shall  be  sufficient  evidence,  prima  facie,  for  the  purpose 
of  showing  a  balance  against  such  person,  to  produce  a  transcript  from 
the  books  and  proceedings  of  the  Treasury,  as  required  in  civil  cases, 
under  the  provisions  for  the  settlement  of  accounts  between  the 
United  States  and  receivers  of  public  money. 


APPENDIX.  411 

Refusal  to  pay  any  draft,  etc.,  prima  facie  evidence  of  embezzlement. 

[§  5495.]  Sec.  94  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1106)].  The  refusal  of  any  person,  whether  in  or  out  of  office, 
charged  with  the  safe-keeping,  transfer,  or  disbursement  of  the  public 
money  to  pay  any  draft,  order,  or  warrant,  drawn  upon  him  by  the 
proper  accounting  officer  of  the  Treasury,  for  any  public  money  in  his 
hands  belonging  to  the  United  States,  no  matter  in  what  capacity  the 
same  may  have  been  received,  or  may  be  held,  or  to  transfer  or  dis- 
burse any  such  money,  promptly,  upon  the  legal  requirement  of  any 
authorized  officer,  shall  be  deemed,  upon  the  trial  of  any  indictment 
against  such  person  for  embezzlement,  prima  facie  evidence  of  such 
embezzlement. 

Evidence  of  conversion. 

[§  5496.]  Sec.  95  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1106)].  If  any  officer  charged  with  the  disbursement  of  the  pub- 
lic moneys  accepts,  receives,  or  transmits  to  the  Treasury  Department 
to  be  allowed  in  his  favor  any  receipt  or  voucher  from  a  creditor  of  the 
United  States  without  having  paid  to  such  creditor  in  such  funds  as 
the  officer  received  for  disbursement,  or  in  such  funds  as  he  may  be 
authorized  by  law  to  take  in  exchange,  the  full  amount  specified  in 
such  receipt  or  voucher,  every  such  act  is  an  act  of  conversion  by 
such  officer  to  his  own  use  of  the  amount  specified  in  such  receipt  or 
voucher. 

Unlawfully   receiving,   etc.,   to   be   embezzlement — Embezzlement   by   internal-revenue   officer  or 

employee  and  others. 

[§  5497.]  Sec.  96  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1 106)].  Every  banker,  broker,  or  other  person  not  an  authorized 
depositary  of  public  moneys,  who  shall  knowingly  receive  from  any 
disbursing  officer,  or  collector  of  internal  revenue,  or  other  agent  of 
the  United  States,  any  public  money  on  deposit,  or  by  way  of  loan  or 
accommodation,  with  or  without  interest,  or  otherwise  than  in  pay- 
ment of  a  debt  against  the  United  States,  or  shall  use,  transfer, 
convert,  appropriate,  or  apply  any  portion  of  the  public  money  for 
any  purpose  not  prescribed  by  law;  and  every  president,  cashier, 
teller,  director,  or  other  officer  of  any  bank  or  banking  association  who 
shall  violate  any  provision  of  this  section  is  guilty  of  embezzlement 
of  the  public  money  so  deposited,  loaned,  transferred,  used,  converted, 
appropriated,  or  applied,  and  shall  be  fined  not  more  than  the  amount 
embezzled,  or  imprisoned  not  more  than  ten  years,  or  both. 

Embezzlement  by  internal-revenue  officer. 

[Act  Feb.  3,  1879,  §  5497.]  Sec.  97  [of  the  Criminal  Code,  act  of 
Mar.  4,  T909  (35  Stat,,  1106)].  Any  officer  connected  with,  or  em- 
ployed in,  the  Internal-Revenue  Service  of  the  United  States,  and 
any  assistant  of  such  officer,  who  shall  embezzle  or  wrongfully  convert 
to  his  own  use  any  money  or  other  property  of  the  United  States,  and 
any  officer  of  the  United  States,  or  any  assistant  of  such  officer,  who 
shall  embezzle  or  wrongfully  convert  to  his  own  use  any  money  or 
property  which  may  have  come  into  his  possession  or  under  his  con- 
trol in  the  execution  of  such  office  or  employment,  or  under  color 
or  claim  of  authority  as  such  officer  or  assistant,  whether  the  same 


412  APPENDIX. 


i: 


shall  be  the  money  or  property  of  the  United  States  or  of  some  other 

person  or  party,  shall,  where  the  offense  is  not  otherwise  punishable 

y  some  statute  of  the  United  States,  be  fined  not  more  than  the  value 

of  the  money  and  property  thus  embezzled  or  converted,  or  imprisoned 

not  more  than  ten  years,  or  both. 

See  section  3639,  page  408. 

Application  of  laws  imposing  punishment  on  internal-revenue  officers  to  cer- 
tain other  classes  of  persons.     (Sec.  3169&,  p.  83.) 

Embezzlement  is  the  fraudulent  appropriation  of  property  by  a  person  to 
whom  it  has  been  intrusted,  or  into  whose  hands  it  has  lawfully  eomt?;  and  it 
differs  from  larceny  in  the  fact  that  the  original  taking  of  the  property  was 
lawful,  or  with  the  consent  of  the  owner,  while  in  larceny  the  felonious  intenl 
must  have  existed  at  the  time  of  the  taking.  (Moore  v.  United  States,  160 
U.  S.,  268.) 

Penalty  for  clerks  and  other  officers  of  United  States  court  failing:  to  deposit  moneys. 

[§  5504.1  Sec.  99  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1106)].  Whoever,  being  a  clerk  or  other  officer  of  a  court  of  the 
United  States,  shall  fail  forthwith  to  deposit  any  money  belonging  in 
the  registry  of  the  court,  or  hereafter  paid  into  court  or  received  by 
the  officers  thereof,  with  the  Treasurer,  assistant  treasurer,  or  a 
designated  depositary  of  the  United  States,  in  the  name  and  to  the 
credit  of  such  court,  or  shall  retain  or  convert  to  his  own  use  or  to  the 
use  of  another  any  such  money,  is  guilty  of  embezzlement,  and  shall 
be  fined  not  more  than  the  amount  embezzled,  or  imprisoned  not 
more  than  ten  years,  or  both;  but  nothing  herein  shall  be  held  to 
prevent  the  delivery  of  any  such  money  upon  security,  according  to 
agreement  of  parties,  under  the  direction  of  the  court. 

Section  3617,  page  404. 

Penalty  for  receiving  money  belonging  in  the  registry  of  the  court. 

[§  5505.]  Sec.  100  [of  the  Criminal  Code,  act  of  Mar.  4,  1909  (35 
Stat.,  1107)].  Whoever  shall  knowingly  receive  ,from  a  clerk  or  other 
officer  of  a  court  of  the  United  States,  as  a  deposit,  loan,  or  otherwise, 
any  money  belonging  in  the  registry  of  snch  court,  is  guilty  of  embez- 
zlement, and  shall  be  punished  as  prescribed  in  the  preceding  section. 

Penalty  for  failure  to  make  reports. 

[§  1780.]  Sec.  101  [of  the  Criminal  Code,  Act  of  Mar.  4,  1909  (35 
Stat.,  1107)}.  Every  officer  who  neglects  or  refuses  to  make  any  return 
or  report  which  he  is  required  to  make  at  stated  times  by  any  Act  of 
Congress  or  regulation  of  the  Department  of  the  Treasury,  other  than 
his  accounts,  within  the  time  prescribed  by  such  Act  or  regulation, 
shall  be  fined  not  more  than  one  thousand  dollars. 

Penalty  for  making  false  reports.     Act  of  March  4,  1911. 

■ 

Disbursing  and  collecting  officers  forbidden  to  trade  In  public  funds  or  property. 

[§  1788;  §  1789.]  Sec.  103  [of  the  Criminal  Code,  Act  of  Mar.  4, 
1909  (35  Stat,  1107)}.  Whoever,  being  an  officer  of  the  United  States 
concerned  in  the  collection  or  the  disbursement  of  the  revenues  thereof, 
shall  carry  on  any  trade  or  business  in  the  funds  or  debts  of  the 
United  States,  or  of  any  State,  or  in  any  public  property  of  either, 
shall  be  fined  not  more  than  three  thousand  dollars,  or  imprisoned  not 
more  than  one  year,  or  both,  and  be  removed  from  office,  and  there- 
after be  incapable  of  holding  any  office  under  the  United  States. 

Certain  business  forbidden  to  clerks  in  Treasury  Department.     (Sec.  244, 


APPENDIX.  413 

Transcripts  from  books,  etc.,  of  the  Treasury,  to  be  evidence  in  suits  against  delinquents. 

Sec.  886.  When  suit  is  brought  in  any  case  of  delinquency  of  a 
revenue  officer,  or  other  person  accountable  for  public  money,  a 
transcript  from  the  books  and  proceedings  of  the  Treasury  Depart- 
ment, certified  by  the  Register  and  authenticated  under  the  seal  of 
the  Department,  or,  when  the  suit  involves  the  accounts  of  the  War 
or  Navy  Departments,  certified  by  the  auditors  respectively  charged 
with  the  examination  of  those  accounts,  and  authenticated  under  the 
seal  of  the  Treasury  Department,  shall  be  admitted  as  evidence,  and 
the  court  trying  the  cause  shall  be  authorized  to  grant  judgment  and 
award  execution  accordingly.  And  all  copies  of  bonds,  contracts,  or 
other  papers  relating  to,  or  connected  with,  the  settlement  of  any 
account  between  the  United  States  and  an  individual,  when  certified 
by  the  Register,  or  by  such  Auditor,  as  the  case  may  be,  to  be  true 
copies  of  the  originals  on  hie,  and  authenticated  under  the  seal  of  the 
Department,  may  be  annexed  to  such  transcripts,  and  shall  have 
equal  validity,  and  be  entitled  to  the  same  degree  of  credit  which 
would  be  due  to  the  original  papers  if  produced  and  authenticated  in 
court:  Provided,  That  where  suit  is  brought  upon  a  bond  or  other 
sealed  instrument,  and  the  defendant  pleads  "non  est  factum,"  or 
makes  his  motion  to  the  court,  verifying  such  plea  or  motion  by  his 
oath,  the  court  may  take  the  same  into  consideration,  and,  if  it 
appears  to  be  necessary  for  the  attainment  of  justice,  may  require  the 
production  of  the  original  bond,  contract,  or  other  paper  speciiied  in 
such  affidavit. 

Soule  v.  United  States  (100  U.  S.  (10  Otto),  8;  26  Int.  Rev.  Rec,  4);  United 
Slates  v.  Hunt  (105  U.  S.  (15  Otto),  183;  28  Int.  Rev.  Rec.,  134). 

The  form  of  certificate  proper  to  be  used  under  section  886  is  discussed  by 
Mr.  Justice  Harlan  in  United  States  v.  Pinson  (102  U.  S.,  548;  27  Int.  Rev. 
Rec,  62). 

The  transcripts  from  the  books  and  proceedings  of  the  Department  of  the 
Treasury  and  the  copies  of  bonds,  contracts,  and  other  papers  provided  for  in 
section  886  of  the  Revised  Statutes  shall  hereafter  be  certified  by  the  Secretary 
or  an  Assistant  Secretary  of  the  Treasury  under  the  seal  of  the  Department  (sec. 
10,  act  of  Mar.  2,  1895;  28  Stat.,  809). 

Section  886  applies  only  to  certifying  transcripts  from  the  books  and  pro- 
ceedings of  the  Treasury  Department  and  copies  of  bonds,  contracts,  or  other 
papers  relating  to  or  connected  with  the  settlement  of  an  account  when  suit  is 
brought  in  any  case  of  delinquency  of  a  revenue  officer  or  other  person  account- 
able for  public  money. 

Transcripts  and  copies.  How  furnished.  (Department  Circular  No.  56, 
June  27,  1906;    Laffan  v.  U.  S.,  (122  Fed.  Rep.,  333;   T.  D.  653.) 

See  section  882,  R.  S.,  p.  391. 

Effects  of  certified  transcripts  from  the  books  of  the  Treasury  Department  as 
evidence  in  actions  against  officers  accountable  for  public  moneys.  (U.  S.  v. 
Pierson,  145  Fed.  Rep.,  814.) 

Transcripts  from  books,  etc.,  of  the  Treasury  in  indictments  for  embezzlement  of  public  moneys. 

Sec.  S87.  Upon  the  trial  of  any  indictment  against  any  person  for 
embezzling  public  moneys,  it  shall  be  sufficient  evidence,  for  the 
purpose  of  showing  a  balance  against  such  person,  to  produce  a 
transcript  from  the  books  and  proceedings  of  the  Treasury  Depart- 
ment, as  provided  by  the  preceding  section. 

Extracts  may  be  given  in  evidence.  (United  States  v.  Gaussen,  19  Wall., 
198.)  _ 

It  is  the  seal  which  authenticates  the  transcript,  and  not  the  signature  of 
the  Secretary.     (Smith  v.  United  States,  5  Pet.,  292.) 


414  APPENDIX. 

Delinquents  for  public  money;  judgment  at  return  term  unless,  etc.;  credits. 

Sec.  957.  When  suit  is  brought  by  the  United  States  against  any 
revenue  officer  or  other  person  accountable  for  public  money,  who 
neglects  or  refuses  to  pay  into  the  Treasury  the  sum  or  balance 
reported  to  be  due  to  the  United  States,  upon  the  adjustment  of  his 
account  it  shall  be  the  duty  of  the  court  to  grant  judgment  at  the 
return  term,  upon  motion,  unless  the  defendant,  in  open  court,  (the 
United  States  attorney  being  present,)  makes  and  subscribes  an  oath 
that  he  is  equitably  entitled  to  credits  which  had  been,  previous  to  the 
commencement  of  the  suit,  submitted  to  the  accounting  oflicers  of  the 
Treasury,  and  rejected;  specifying  in  the  affidavit  each  particular 
claim  so  rejected,  and  that  he  cannot  then  safely  come  to  trial.  If  the 
court,  when  such  oath  is  made,  subscribed,  and  filed,  is  thereupon 
satisfied,  a  continuance  until  the  next  succeeding  term  may  be  granted. 
Such  continuance  may  also  be  granted  when  the  suit  is  brought  upon 
a  bond  or  other  sealed  instrument,  and  the  defendant  pleads  non  est 
factum,  or  makes  a  motion  to  the  court,  verifying  such  plea  or  motion 
by  his  oath,  and  the  court  thereupon  requires  the  production  of  the 
original  bond,  contract,  or  other  paper  certified  in  the  affidavit.  And 
no  continuance  shall  be  granted  except  as  herein  provided. 

As  to  credits,  see  United  States  v.  Flanders  (112  U.  S.,  88;  30  Int.  Rev.  Rec, 
397). 

Judgment  against  a  defaulting  collector.  (United  States  v.  Ingate  (1891), 
48  Fed.  Rep.,  251). 

See  section  951,  page  424,  as  to  claims  for  credit  in  suits  of  United  States 
against  individuals. 

Notice  of  deficiency  in  accounts  of  principals  to  be  given  to  sureties  upon  bonds  of  Inited  States 
officials,  and  fixing  a  limitation  of  time  within  which  suits  shall  be  brought  against  said  sureties 
upon  said  bonds. 

Act  of  August  8,  1888  (25  Stat.,  387).     See  page  372. 


Chapter  3. 


PROVISIONS  OF  THE  CRIMINAL  CODE,  ACT  OF  MARCH  4,  1909  (35  STAT., 

1088). 

(Repealed  sections  of  t  e  Revised  Statutes  are  noted  in  brackets.] 

Penalties  for  perjury — Obstructing  process — Resisting  officers — Rescuing 
prisoners  or  property — Falsely  assuming  to  be  an  officer — Bribery — 
Conspiracy — Destroying  public  records — Stealing  public  property — 
Receiving  stolen  Government  property — Counterfeiting  public  records, 
securities,  and  stamps — Making  false  claims,  etc. — Provisions  rela- 
tive to  distilled  spirits. 

Perjury;  penalty  for. 

Sec.  125.  [5392  R.  S.]  Whoever,  having  taken  an  oath  before  a 
competent  tribunal,  officer,  or  person,  in  any  case  in  which  a  law  of 
the  United  States  authorizes  an  oath  to  be  administered,  that  he  will 
testify,  declare,  depose,  or  certify  truly,  or  that  any  written  testimony, 
declaration,  deposition,  or  certificate  by  him  subscribed,  is  true,  shall 
willfully  and  contrary  to  such  oath  state  or  subscribe  any  material 
matter  which  he  does  not  believe  to  be  true,  is  guilty  of  perjury,  and 


APPENDIX.  415 

shall  be  fined  not  more  than  two  thousand  dollars  and  imprisoned  not 
more  than  five  years. 

Indictment  for  perjury.  (United  States  v.  William  K.  Smith,  12  Int.  Rev. 
Rec,  135;  United  States  v.  McConaughy,  34  Int.  Rev.  Rec,  80;  United  States 
v.  Edwards,  43  Fed.  Rep.,  67.) 

Powers  of  notaries  public  to  administer  oaths.  (United  States  v.  Hall,  131 
U.  S.,  50.)     See  section  1778. 

The  oath  must  be  administered  in  a  proceeding  that  is  valid  and  regular. 
It  must  be  authorized  by  law.  The  false  testimony  must  be  material,  and  the 
oath  must  be  administered  by  one  having  legal  authority  to  administer  it. 
(See  cases  cited  in  United  States  v.  Bedgood,  49  Fed.  Rep.,  54.) 

U.  S.  v.  Lamson  (165  Fed.  Rep.,  80). 

The  oath  may  be  administered  by  a  deputy  collector.  (U.  S.  v.  Hardison,  135 
Fed.  Rep.,  419.) 

Obstructing  or  resisting  officer  in  serving  writ;  penalty. 

Sec.  140.  [5398  R.  S.]  Whoever  shall  knowingly  and  willfully 
obstruct,  resist,  or  oppose  any  officer  of  the  United  States,  or  other 
person  duly  authorized,  in  serving,  or  attempting  to  serve  or  execute, 
any  mesne  process  or  warrant,  or  any  rule  or  order,  or  any  other  legal 
or  judicial  writ  or  process  of  any  court  of  the  United  States,  or  United 
States  commissioner,  or  shall  assault,  beat,  or  wound  any  officer  or 
other  person  duly  authorized,  knowing  him  to  be  such  officer,  or  other 
person  so  duly  authorized,  in  serving  or  executing  any  such  writ,  rule, 
order,  process,  warrant,  or  other  legal  or  judicial  writ  or  process,  shall 
be  fined  not  more  than  three  hundred  dollars  and  imprisoned  not  more 
than  one  year. 

United  States  v.  Terry  (41  Fed.  Rep.,  771). 

Obstructing  internal-revenue  officer.     (3177,  p.  90.) 

Distiller  obstructing  officer.     (Sec.  3276,  p.  170.) 

Deputy  marshal  an  officer  under  this  section.     (17  Fed.  Rep.,  150.) 

Rescue  of  prisoners;  penalty. 

Sec.  143.  [5401  R.  S.]  Whoever,  by  force,  shall  set  at  liberty  or 
rescue  any  person  who,  before  conviction,  stands  committed  for  any 
capital  crime;  or  whoever,  by  force,  shall  set  at  liberty  or  rescue  any 
person  committed  for  or  convicted  of  any  offense  other  than  capital, 
shall  be  fined  not  more  than  five  hundred  dollars  and  imprisoned  not 
more  than  one  year. 

Taking  seized  property  from  custody  of  revenue  officer,  etc.:  penalty. 

Sec.  65.  [5447  R.  S.]  Whoever  shall  forcibly  assault,  resist,  oppose, 
prevent,  impede,  or  interfere  with  any  officer  of  the  customs  or  of  the 
internal  revenue,  or  his  deputy,  or  any  person  assisting  him  in  the 
execution  of  his  duties,  or  any  person  authorized  to  make  searches  and 
seizures,  in  the  execution  of  his  duty,  or  shall  rescue,  attempt  to  rescue, 
or  cause  to  be  rescued,  any  property  which  has  been  seized  by  any 
person  so  authorized;  or  whoever  before,  at,  or  after  such  seizure,  in 
order  to  prevent  the  seizure  or  securing  of  any  goods,  wares,  or 
merchandise  by  any  person  so  authorized,  shall  stave,  break,  throw 
overboard,  destroy,  or  remove  the  same,  shall  be  fined  not  more  than 
two  thousand  dollars,  or  imprisoned  not  more  than  one  year,  or  both; 
and  whoever  shall  use  any  deadly  or  dangerous  weapon  in  resisting  any 
person  authorized  to  make  searches  or  seizure,  in  the  execution  of  his 
duty,  with  intent  to  commit  a  bodily  injury  upon  him  or  to  deter  or 


416  APPENDIX. 

prevent  him  from  discharging  his  duty,  shall  be  imprisoned  not  more 
than  ten  years. 

Sec.  71.  [5446  R.  S.]  Whoever  shall  dispossess  or  rescue,  or  attempt 
to  dispossess  or  rescue,  any  property  taken  or  detained  by  any  oilicer 
or  other  person  under  the  authority  of  any  revenue  law  of  the  United 
States,  or  shall  aid  or  assist  therein,  shall  be  fined  not  more  than  three 
hundred  dollars  and  imprisoned  not  more  than  one  year. 

Rescuing  property  seized  by  collector.  (Sec.  3177,  p.  90;  sees.  65  and  71 
of  the  Criminal  Code,  act  of  Mar.  4,  1909;  35  Stat.,  1100,  1101.) 

Seized  property  irrepleviable.     (Sec.  934,  p.  399.) 

Discharging  deadly  weapon  at  person  authorized  to  make  searches  or  seizures. 
(Sec.  65  of  the  Criminal  Code,  act  of  Mar.  4,  1909;  35  Stat.,  1100.) 

Falsely  assuming  to  be  a  Government  officer;  penalty. 

Sec.  66.  [5448  R.  S.]  Whoever  shall  falsely  represent  himself  to  be 
a  revenue  officer,  and,  in  such  assumed  character,  demand  or  receive 
any  money  or  other  article  of  value  from  any  person  for  any  duty  or 
tax  due  to  the  United  States,  or  for  any  violation  or  pretended  viola- 
tion of  any  revenue  law  of  the  United  States,  shall  be  lined  not  more 
than  five  hundred  dollars  and  imprisoned  not  more  than  two  years. 

Sec.  32.  [5448a,  act  of  April  18,  1884.]  Whoever,  with  intent  to 
defraud  either  the  United  States  or  any  person,  shall  falsely  assume  or 
pretend  to  be  an  officer  or  employee  acting  under  the  authority  of  the 
United  States,  or  any  Department,  or  any  officer  of  the  Government 
thereof,  and  shall  take  upon  himself  to  act  as  such,  or  shall  in  such 
pretended  character  demand  or  obtain  from  any  person  or  from  the 
United  States,  or  any  Department,  or  any  officer  of  the  Government 
thereof,  any  money,  paper,  document,  or  other  valuable  thing,  shall 
be  fined  not  more  than  one  thousand  dollars,  or  imprisoned  not  more 
than  three  years,  or  both. 

United  States  v.  Brown  (1902),  (119  Fed.  Rep.,  482,  indictment  under  sec. 

5448). 

Bribery;  penalty. 

Sec.  39.  [5451  R.  S.]  Whoever  shall  promise,  offer,  or  give,  or  cause 
or  procure  to  be  promised,  offered,  or  given,  any  money  or  other  thing 
of  value,  or  shall  make  or  tender  airy  contract,  undertaking,  obligation, 
gratuity,  or  security  for  the  payment  of  money,  or  for  the  delivery 
or  conveyance  of  anything  of  value,  to  any  officer  of  the  United  States, 
or  to  any  person  acting  for  or  on  behalf  of  the  United  States  in  any 
official  function,  under  or  by  authority  of  any  department  or  office  of 
the  Government  thereof,  or  to  any  officer  or  person  acting  for  or  on 
behalf  of  either  House  of  Congress,  or  of  any  committee  of  eitherHouse, 
or  both  Houses  thereof,  with  intent  to  influence  his  decision  or  action 
on  any  question,  matter,  cause,  or  proceeding  which  may  at  any  time 
be  pending,  or  which  may  by  law  be  brought  before  him  in  his 
official  capacity,  or  in  his  place  of  trust  or  profit,  or  with  intent  to 
influence  him  to  commit  or  aid  in  committing,  or  to  collude  in,  or 
allow,  any  fraud,  or  make  opportunity  for  the  commission  of  any 
fraud,  on  the  United  States,  or  to  induce  him  to  do  or  omit  to  do  any 
act  in  violation  of  his  lawful  duty,  shall  be  fined  not  more  than  three 
times  the  amount  of  money  or  value  of  the  thing  so  offered,  promised, 
given,  made,  or  tendered,  or  caused  or  procured  to  be  so  offered, 


APPENDIX.  417 

promised,  given,  made,  or  tendered,  and  imprisoned  not  more  than 
three  years. 

An  indictment  for  offering  an  internal-revenue  officer  a  bribe  to  set  fire  to  a 
distillery  situated  within  the  limits  of  a  State  is  not  cognizable  by  the  Federal 
courts,  since  there  are  no  common-law  offenses  against  the  United  States,  and 
section  5451,  which  makes  it  a  crime  to  offer  to  bribe  an  officer  of  the  United 
States  with  intent  to  iniluence  him  to  do  or  omit  to  do  any  act  in  violation  of 
his  lawful  duty,  applies  only  to  acts  within  the  official  functions  of  the  officer. 
(United  States  v.  Gibson  (1891),  47  Fed.  Rep.,  833.) 

United  States  officers  accepting  bribes:  penalty. 

Sec.  117.  [5501  R.  S.,  5502  R.  S.]  Whoever,  being  an  officer  of  the 
United  States,  or  a  person  acting  for  or  on  behalf  of  the  United  States, 
in  any  official  capacity,  under  or  by  virtue  of  the  authority  of  any 
department  or  office  of  the  Government  thereof;  or  whoever,  being  an 
officer  or  person  acting  for  or  on  behalf  of  either  House  of  Congress,  or 
of  any  committee  of  either  House,  or  of  both  Houses  thereof,  shall  ask, 
accept,  or  receive  any  money,  or  any  contract,  promise,  undertaking, 
obligation,  gratuity,  or  security  for  the  payment  of  money,  or  for 
the  delivery  or  conveyance  of  anything  of  value,  with  intent  to  have 
his  decision  or  action  on  any  question,  matter,  cause,  or  proceeding 
which  may  at  any  time  be  pending,  or  which  may  by  law  be  brought 
before  him  in  his  official  capacity,  or  in  his  place  of  trust  or  profit, 
influenced  thereby,  shall  be  fined  not  more  than  three  times  the 
amount  of  money  or  value  of  the  thing  so  asked,  accepted,  or  received, 
and  imprisoned  not  more  than  three  years;  and  shall,  moreover, 
forfeit  Ins  office  or  place  and  thereafter  be  forever  disqualified  from 
holding  any  office  of  honor,  trust,  or  profit  under  the  Government 
of  the  United  States. 

Sections  110,  112,  113,  and  114  of  the  Criminal  Code  relate  to  Members  of 
Congress,  Delegates  in  Congress,  and  Resident  Commissioners  receiving  bribes, 
etc. 

Internal-revenue  officer  accepting  bribes.     (Sec.  3169,  p.  81.) 
District  attorney  or  marshal  accepting  bribes.     (Sec.  3170,  p.  83.) 

Extortion  by  informers;  penalty. 

Sec.  145.  [5484  R.  S.]  Whoever  shall,  under  a  threat  of  informing, 
or  as  a  consideration  for  not  informing,  against  any  violation  of  any 
law  of  the  United  States,  demand  or  receive  any  money  or  other  valu- 
able thing,  shall  be  fined  not  more  than  two  thousand  dollars,  or 
imprisoned  not  more  than  one  year,  or  both. 

Extortion  bv  officer,  clerk,  agent,  or  employee  of  the  United  States.     (Sec.  85 
of  the  Criminal  Code,  act  of  Mar.  4,  1909;  35  Stat.,  1102.) 
Extortion  by  internal-revenue  officer  or  agent.     (Sec.  3169,  p.  81.) 

Conspiracy  to  prevent  persons  from  accepting  or  holding  office  under  United  States  or  to  injure 
an  officer  in  his  person  or  property;  penalty. 

Sec.  21.  [5518R.S.]  If  two  or  more  persons  in  any  State,  Territory, 
or  District  conspire  to  prevent,  by  force,  intimidation,  or  threat,  any 
person  from  accepting  or  holding  any  office,  trust,  or  place  of  confi- 
dence under  the  United  States,  or  from  discharging  any  duties  thereof; 
or  to  induce  by  like  means  any  officer  of  the  United  States  to  leave  any 
State,  Territory,  District,  or  place,  where  his  duties  as  an  officer  are 
required  to  be  performed,  or  to  injure  him  in  his  person  or  property 

72170°— 11 27 


418  APPENDIX. 

on  account  of  his  lawful  discharge  of  the  duties  of  his  office,  or  while 
engaged  in  the  lawful  discharge  thereof,  or  to  injure  his  property  so  as 
to  molest,  interrupt,  hinder,  or  impede  him  in  the  discharge  of  his 
official  duties,  each  of  such  persons  shall  be  fined  not  more  than  five 
thousand  dollars,  or  imprisoned  not  more  than  six  years,  or  both. 

Conspiracy  to  defraud:  penalty. 

Sec.  37  [5440  R.  S.]  If  two  or  more  persons  conspire  either  to 
commit  any  offense  against  the  United  States,  or  to  defraud  the  United 
States  in  any  manner  or  for  any  purpose,  and  one  or  more  of  such 
parties  do  any  act  to  effect  the  object  of  the  conspiracy,  each  of  the 
parties  to  such  conspiracy  shall  be  fined  not  more  than  ten  thousand 
dollars,  or  imprisoned  not  more  than  two  years,  or  both. 

This  section  was  originally  enacted  as  part  of  the  internal-revenue  act  of 
June  30,  1864  (13  Stat.,  239),  and  so  remained  until  the  revision;  now  it  is  under 
the  title  "Offenses  against  the  operation  of  the  Government"  in  the  criminal 
code. 

A  conspiracy  to  defraud  the  Government,  though  it  may  be  directed  to  the 
revenue  as  its  object,  is  punishable  by  the  general  law  against  all  conspira- 
cies, and  can  hardly  be  said,  in  any  just  sense,  to  arise  under  the  revenue  laws. 
United  States  v.  Hirsch  (100  U.  S.  (10  Otto),  33;  25  Int.  Rev.  Rec,  375.) 

What  is  conspiracy?  (United  States  v.  Rindskopf  et  al.,  21  Int.  Rev.  Rec, 
326;  U.  S.  v.  Hamilton,  22  Int.  Rev.  Rec.  106.) 

There  must  be  an  overt  act  to  make  the  offense  complete.  (Hyde  v.  Shine, 
199  U.  S.  62.) 

The  mere  combining  or  confederating  to  commit  the  fraud  is  sufficient  without 
actual  perpetration  of  it,  if  anyone  of  the  parties  has  taken  a  step  toward  its 
execution.  _    (U.  S.  v.  Callicott,  Fed.  Cas.  No.  14710,  7  Int.  Rev.  Rec,  177.) 

Declaration  of  co-conspirators.  (United  States  v.  Wm.  McKee,  22  Int.  Rev. 
Rec.,  57.) 

Limitation  on  prosecution  under  this  section.  (United  States  v.  Owen  et  al., 
34  Int.  Rev.  Rec,  3.) 

History  of  the  conspiracy  to  defraud  the  revenue  of  the  tax  on  spirits  in  St. 
Louis  from  1871  to  1875.  (United  States  v.  McKee,  3  Dill.,  546;  Fed.  Cas.  No. 
15686,  United  States  v.  Babcock,  3  Dill.,  583;  22  Int.  Rev.  Rec,  86.) 

Requisites  of  indictment  for  conspiracy  to  defraud.  (United  States  v.  Ulrici, 
3  Dill.,  532.) 

An  indictment  charging  conspiracy  to  "commit  an  offense  against  the  United 
States"  must  state  an  agreement  to  do  acts  which,  if  done,  would  constitute  a 
specific  offense,  and  where  an  intent  is  an  essential  part  of  such  offense  such 
intent  must  be  averred.     (United  States  v.  Green,  136  Fed.  Rep.,  618.) 

Destroying,  carrying  away,  etc.,  public  records;  penalty. 

Sec.  128  [5403  R.  S.].  Whoever  shall  willfully  and  unlawfully  con- 
ceal, remove,  mutilate,  obliterate,  or  destroy,  or  attempt  to  conceal, 
remove,  mutilate,  obliterate,  or  destroy,  or,  with  intent  to  conceal, 
remove,  mutilate,  obliterate,  destroy,  or  steal,  shall  take  and  carry 
away  any  record,  proceeding,  map,  book,  paper,  document,  or  other 
thing,  filed  or  deposited  with  any  clerk  or  officer  of  any  court  of  the 
United  States,  or  in  any  public  office,  or  with  any  judicial  or  public 
officer  of  the  United  States,  shall  be  fined  not  more  than  two  thousand 
dollars,  or  imprisoned  not  more  than  three  years,  or  both. 

Destroying  records  by  officer  in  charge;  penalty. 

Sec.  129  [5408  R.  S.].  Whoever,  having  the  custody  of  any  record, 
proceeding,  map,  book,  document,  paper,  or  other  tiling  specified  in 
the  preceding  section,  shall  willfully  and  unlawfully  conceal,  remove, 


APPENDIX.  419 

mutilate,  obliterate,  falsify,  or  destroy  any  such  record,  proceeding, 
map,  book,  document,  paper,  or  thing,  shall  be  fined  not  more  than 
two  thousand  dollars,  or  imprisoned  not  more  than  three  years,  or 
both;  and  shall  moreover  forfeit  his  of  lice  and  be  forever  afterward 
disqualified  from  holding  any  office  under  the  Government  of  the 
United  States. 

Carrying  away  without  authority  and  unlawfully  using  papers  relating  to  claims,  etc.;  penalty. 

Sec.  40  [5454  R.  S.].  Whoever  shall  take  and  carry  away,  without 
authority  from  the  United  States,  from  the  place  where  it  has  been 
filed,  lodged,  or  deposited,  or  where  it  may  for  the  time  being  actually 
be  kept  by  authority  of  the  United  States,  any  certificate,  affidavit, 
deposition,  written  statement  of  facts,  power  of  attorney,  receipt, 
voucher,  assignment,  or  other  document,  record,  file,  or  paper,  pre- 
pared, fitted,  or  intended  to  be  used  or  presented  in  order  to  procure 
the  payment  of  money  from  or  by  the  United  States,  or  any  officer  or 
agent  thereof,  or  the  allowance  or  payment  of  the  whole  or  any  part  of 
any  claim,  account,  or  demand  against  the  United  States,  whether 
the  same  has  or  has  not  already  been  so  used  or  presented,  and  whether 
such  claim,  account,  or  demand,  or  any  part  thereof,  has  or  has  not 
already  been  allowed  or  paid;  or  whoever  shall  present,  use,  or  at- 
tempt to  use,  any  such  document,  record,  file,  or  paper  so  taken  and 
carried  away,  in  order  to  procure  the  payment  of  any  money  from  or 
by  the  United  States,  or  any  officer  or  agent  thereof,  or  the  allowance 
or  payment  of  the  whole  or  any  part  of  any  claim,  account,  or  demand 
against  the  United  States,  shall  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  ten  years,  or  both. 

Kobhery  or  larceny  of  personal  property  of  the  United  States;  penalty. 

Sec.  46  [5456  R.  S.].  Whoever  shall  rob  another  of  any  kind  or 
description  of  personal  property  belonging  to  the  United  States,  or 
shall  feloniously  take  and  carry  away  the  same,  shall  be  fined  not 
more  than  five  thousand  dollars,  or  imprisoned  not  more  than  ten 
years,  or  both. 

Embezzling  or  stealing  public  property  or  receiving  a:id  retaining  in  possession  property  stolen; 

penalty. 

Sec.  47  [Sec.  1,  Act  of  March  3,  1875  (18  Stat.,  479)].  Whoever  shall 
embezzle,  steal,  or  purloin  any  money,  property,  record,  voucher,  or 
valuable  thing  whatever,  of  the  moneys,  goods,  chattels,  records,  or 
property  of  the  United  States,  shall  be  fined  not  more  than  five  thous- 
and dollars,  or  imprisoned  not  more  than  five  years,  or  both. 

Sec.  48  [Sec.  2].  Whoever  shall  receive,  conceal,  or  aid  in  conceal- 
ing, or  shall  have  or  retain  in  his  possession  with  intent  to  convert  to 
his  own  use  or  gain,  any  money,  property,  record,  voucher,  or  valuable 
thing  whatever,  of  the  moneys,  goods,  chattels,  records,  or  property 
of  the  United  States,  which  has  theretofore  been  embezzled,  stolen, 
or  purloined  by  any  other  person,  knowing  the  same  to  have  been  so 
embezzled,  stolen,  or  purloined,  shall  be  fined  not  more  than  five 
thousand  dollars,  or  imprisoned  not  more  than  five  years,  or  both; 
and  such  person  may  be  tried  either  before  or  after  the  conviction  of 
the  principal  offender. 


420  APPENDIX. 

Forging,  counterfeiting,  etc.,  bid,  bond,  public  record,  etc.:  penalty. 

Sec.  28  [5418  R.  S.,  5479  R.  S.].  Whoever  shall  falsely  make,  alter, 
forge,  or  counterfeit,  or  cause  or  procure  to  be  falsely  made,  altered, 
forged,  or  counterfeited,  or  willingly  aid,  or  assist  in  the  false  making, 
altering,  forging,  or  counterfeiting,  any  bond,  bid,  proposal,  contract, 
guarantee,  security,  official  bond,  public  record,  affidavit,  or  other 
writing  for  the  purpose  of  defrauding  the  United  States;  or  shall  utter 
or  publish  as  true,  or  cause  to  be  uttered  or  published  as  true,  or  have 
in  his  possession  with  the  intent  to  utter  or  publish  as  true,  any  such 
false,  forged,  altered,  or  counterfeited  bond,  bid,  proposal,  contract, 
guarantee,  security,  official  bond,  public  record,  affidavit,  or  other 
writing,  for  the  purpose  of  defrauding  the  United  States,  knowing  the 
same  to  be  false,  forged,  altered,  or  counterfeited;  or  shall  transmit 
to,  or  present  at,  or  cause  or  procure  to  be  transmitted  to,  or  presented 
at,  the  office  of  any  officer  of  the  United  States,  any  such  false,  forged, 
altered,  or  counterfeited  bond,  bid,  proposal,  contract,  guarantee, 
security,  official  bond,  public  record,  aflidavit,  or  other  writing,  know- 
ing the  same  to  be  false,  forged,  altered,  or  counterfeited,  for  the 
purpose  of  defrauding  the  United  States,  shall  be  fined  not  more  than 
one  thousand  dollars,  or  imprisoned  not  more  than  ten  years,  or  both. 

Counterfeiting  United  States  securities  and  stamps;  penalty. 

Sec.  148  [5414  R.  S.j.  Whoever,  with  intent  to  defraud,  shall  falsely 
make,  forge,  counterfeit,  or  alter  any  obligation  or  other  security  of  the 
United  States  shall  be  fined  not  more  than  five  thousand  dollars  and 
imprisoned  not  more  than  fifteen  years. 

Sec.  147  [5413  R.  S.].  The  words  "  obligation  or  other  security  of  the 
United  States"  shall  be  held  to  mean  all  bonds,  certificates  of  indebt- 
edness, national-bank  currency,  coupons,  United  States  notes,  Treas- 
ury notes,  gold  certificates,  silver  certificates,  fractional  notes,  cer- 
tificates of  deposit,  bills,  checks,  or  drafts  for  money,  drawn  by  or 
upon  authorized  officers  of  the  United  States,  stamps  and  other  repre- 
sentatives of  value,  of  whatever  denomination,  which  have  been  or 
may  be  issued  under  any  Act  of  Congress. 

See  also  sections  151,  152,  153,  154. 

Counterfeit  money,  act  of  February  10,  1891.     (United  States  v.  Kuhl  (1898), 
85  Fed.  Rep.,  624.) 

Making  or  presenting  false,  fictitious,  or  fraudulent  claims;  penalty. 

Sec.  35.  [5438  R.  S.]  Whoever  shall  make  or  cause  to  be  made,  or 
present  or  cause  to  be  presented,  for  payment  or  approval,  to  or  by 
any  person  or  officer  in  the  civil,  military,  or  naval  service  of  the 
United  States,  any  claim  upon  or  against  the  Government  of  the 
United  wStates,  or  any  department  or  officer  thereof,  knowing  such 
claim  to  be  false,  fictitious,  or  fraudulent;  or  whoever,  for  the  purpose 
of  obtaining  or  aiding  to  obtain  the  payment  or  approval  of  such 
claim,  shall  make  or  use,  or  cause  to  be  made  or  used,  any  false  bill, 
receipt,  voucher,  roll,  account,  claim,  certificate,  affidavit,  or  depo- 
sition, knowing  the  same  to  contain  any  fraudulent  or  fictitious  state- 
ment or  entry;  or  whoever  shall  enter  into  any  agreement,  combina- 
tion, or  conspiracy  to  defraud  the  Government  of  the  United  States, 
or  any  department  or  officer  thereof,  by  obtaining  or  aiding  to  obtain 
the  payment  or  allowance  of  any  false  or  fraudulent  claim;  or  who- 


APPENDIX.  421 

ever,  having  charge,  possession,  custody,  or  control  of  any  money  or 
other  public  property  used  or  to  to  be  used  in  the  military  or  naval 
service,  with  intent  to  defraud  the  United  States  or  willfully  to  con- 
ceal such  money  or  other  property,  shall  deliver  or  cause  to  be  deliv- 
ered, to  any  other  person  having  authority  to  receive  the  same,  any 
amount  of  such  money  or  other  property  less  than  that  for  which  he 
received  a  certificate  or  took  a  receipt ;  or  whoever,  being  authorized  to 
make  or  deliver  any  certificate,  voucher,  receipt,  or  other  paper  certi- 
fying the  receipt  of  arms,  ammunition,  provisions,  clothing,  or  other 
property  so  used  or  to  be  used,  shall  make  or  deliver  the  same  to  any 
other  person  without  a  full  knowledge  of  the  truth  of  the  facts  stated 
therein,  and  with  intent  to  defraud  the  United  States,  shall  be  fined 
not  more  than  five  thousand  dollars,  or  imprisoned  not  more  than  five 
years,  or  both.  And  whoever  shall  knowingly  purchase  or  receive  in 
pledge  for  any  obligation  or  indebtedness  from  any  soldier,  officer, 
sailor,  or  other  person  called  into  or  employed  in  the  military  or  naval 
service,  any  arms,  equipments,  ammunition,  clothes,  military  stores, 
or  other  public  property,  whether  furnished  to  the  soldier,  sailor,  offi- 
cer, or  person,  under  a  clothing  allowance  or  otherwise,  such  soldier, 
sailor,  officer,  or  other  person  not  having  the  lawful  right  to  pledge  or 
sell  the  same,  shall  be  fined  not  more  than  five  hundred  dollars,  and 
imprisoned  not  more  than  two  years. 

Deputy  marshal  presenting  false  claim.     (U.  S.  v.  Strobach,  48  Fed.  Rep., 
902.) 

Provisions  of  the  Criminal  Code  relative  to  distilled  spirits. 

AN  ACT  To  codifv.  revise,  and  amend  the  penal  laws  of  the  United  States,  approved 
March  4,  1909  (35  Stat.,  1136),  taking  effect  January  1,  1910. 

Sec.  238.  Interstate  shipment  of  intoxicating  liquors;  delivery  of  to  be  made  only 
to  bona  fide  consignee. 

Sec.  239.  Common  carrier,  etc.,  not  to  collect  purchase  price  of  interstate  shipment 
of  intoxicating  liquors. 

Sec  240.  Packages  containing  intoxicating  liquors  shipped  in  interstate  commerce 
to  be  marked  as  such. 

Sec.  238.  Any  officer,  agent,  or  employee  of  any  railroad  company, 
express  company,  or  other  common  carrier,  who  shall  knowingly 
deliver  or  cause  to  be  delivered  to  any  person  other  than  the  person 
to  whom  it  has  been  consigned,  unless  upon  the  written  order  in  each 
instance  of  the  bona  fide  consignee,  or  to  any  fictitious  person,  or  to 
any  person  under  a  fictitious  name,  any  spirituous,  vinous,  malted, 
fermented,  or  other  intoxicating  liquor  of  any  kind  which  has  been 
shipped  from  one  State,  Territory,  or  District  of  the  United  States, 
or  place  noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  into 
any  other  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  or  from 
any  foreign  country  into  any  State,  Territory,  or  District  of  the 
United  States,  or  place  noncontiguous  to  but  subject  to  the  juris- 
diction thereof,  shall  be  fined  not  more  than  five  thousand  dollars, 
or  imprisoned  not  more  than  two  years,  or  both. 

Sec.  239.  Any  railroad  company,  express  company,  or  other  com- 
mon carrier,  or  any  other  person  who,  in  connection  with  the  trans- 
portation of  any  spirituous,  vinous,  malted,  fermented,  or  other 
intoxicating  liquor  of  any  kind,  from  one  State,  Territory,  or  District 
of  the  United  States,  or  place  noncontiguous  to  but  subject  to  the 
jurisdiction  thereof,  into  any  other  State,  Territory,  or  District  of  the 


422  APPENDIX. 

United  States,  or  place  noncontiguous  to  but  subject  to  the  jurisdic- 
tion thereof,  or  from  any  foreign  country  into  any  State,  Territory,  or 
District  of  the  United  States,  or  place  noncontiguous  to  but  subject 
to  the  jurisdiction  thereof,  shall  collect  the  purchase  price  or  any  part 
thereof,  before,  on,  or  after  delivery,  from  the  consignee,  or  from  any 
other  person,  or  shall  in  any  manner  act  as  the  agent  of  the  buyer  or 
seller  of  any  such  liquor,  for  the  purpose  of  buying  or  selling  or  com- 
pleting the  sale  thereof,  saving  only  in  the  actual  transportation  and 
delivery  of  the  same,  shall  be  fined  not  more  than  five  thousand 
dollars. 

.Sec.  240.  Whoever  shall  knowingly  ship  or  cause  to  be  shipped, 
from  one  State,  Territory,  or  District  of  the  United  States,  or  place 
noncontiguous  to  but  subject  to  the  jurisdiction  thereof,  into  any 
other  State,  Territory,  or  District  of  the  United  States,  or  place  non- 
contiguous to  but  subject  to  the  jurisdiction  thereof,  or  from  any 
foreign  country  into  any  State,  Territory,  or  District  of  the  United 
States,  or  place  noncontiguous  to  but  subject  to  the  jurisdiction 
thereof,  any  package  of  or  package  containing  any  spirituous,  vinous, 
malted,  fermented,  or  other  intoxicating  liquor  of  any  kind,  unless 
such  package  be  so  labeled  on  the  outside  cover  as  to  plainly  show 
the  name  of  the  consignee,  the  nature  of  its  contents,  and  the  quan- 
tity contained  therein,  shall  be  fined  not  more  than  five  thousand 
dollars;  and  such  liquor  shall  be  forfeited  to  the  United  States,  and 
may  be  seized  and  condemned  by  like  proceedings  as  those  provided 
by  law  for  the  seizure  and  forfeiture  of  property  imported  into  the 
United  States  contrary  to  law. 

Labeling  of  liquors  under  section  240,  Criminal  Code,  act  of  March  4,  1909 — 
Instructions  to  customs  officers.     (Op.  Atty.  Gen.,  Dec.  16,  1909;  T.  D.  30393.) 

Sections  238,  239,  and  240  of  the  Criminal  Code,  effective  January  1,  1910,  are 
part  of  Chapter  IX,  entitled  "Offenses  against  foreign  and  interstate  commerce, " 
and  are  not  required  to  be  enforced  through  the  office  of  Internal  Revenue. 
(T.  D.  1589.) 

Criminal  Code,  vxodification  of  T.  D.  1589. — Instructions  to  revenue  officers 
relative  to  seizure  of  property  forfeited  for  violation  of  section  240  of  the  Penal 
Code,  effective  January  1,  1910 — According  to  Attorney  General,  right  to  seize 
vested  in  any  person.     (T.  D.  1610.) 

Carriers  are  prohibited  from  giving  information  concerning  shipments  handled 
by  them  , except  in  response  to  legal  process  from  the  court  or  proper  State  or 
United  States  officer.  (Sec.  15,  act  Feb.  4,  1887,  "An  act  to  regulate  com- 
merce," amended  by  sec.  12,  act  June  18,  1910,  36  Stat.,  551.) 


Chapter  4. 


Claims — Payment  to  person  in  arrears — Set-offs — Credits — Priority  of 
Government — Appropriations — Attorneys  before  departments — Dupli- 
cate checks — Penalty  envelopes — Telegrams — Disposition  of  useless 
paper,  etc. 

Claims  to  be  adjusted  in  the  Treasury  Department. 

Sec.  236.  All  claims  and  demands  whatever  by  the  United  States  or 
against  them,  and  all  accounts  whatever  in  which  the  United  States 
are  concerned  either  as  debtors  or  as  creditors,  shall  be  settled  and 
adjusted  in  the  Department  of  the  Treasury. 

The  doctrine  that  the  United  States  can  not  be  sued  without  its  consent 
examined  and  reaffirmed.  (United  States  v.  Lee,  106  U.  S.,  196;  29  Int.  Rev. 
Rec,  1.) 


APPENDIX.  423 

The  United  States,  by  various  acts  of  Congress,  have  consented  to  be  sued  in 
their  own  courts  in  certain  classes  of  cases;  but  they  have  never  consented  to 
be  sued  in  the  courts  of  a  State  in  any  case.  (Stanley  v.  Schwalby,  162  U.  S., 
255.) 

The  United  States  have  never,  either  by  the  act  of  March  3,  1887,  or  by  any 
other  law,  permitted  themselves  to  be  sued  for  torts  committed  by  their  officers. 
(Hill  v.  United  States,  149  U.  S.,  593.) 

A  court  of  claims  was  created  by  the  act  of  February  24,  1855  (sec.  1049). 
Cases  arising  under  the  revenue  laws  not  within  the  jurisdiction  of  the  Court 
of  Claims.     (Nichols  v.  United  States-,  7  Wall.,  129.) 

Jurisdiction  of  the  Court  of  Claims.  "The  Judicial  Code  "  (act  of  March  3, 
1911,  sec.  145,  36  Stat.,  1087). 

Section  1063,  as  to  head  of  Department  transmitting  claims  to  the  Court  of 
Claims.  (Hart  v.  United  States,  15  Ct.  Cls.,  414;  United  States  v.  New  York, 
160  U.  S.,  598.) 

Secretary  can  not  legally  by  departmental  order  chance  a  practice  or  course 
of  office  prescribed  by  statute  for  settlement  of  accounts.  (19  Op.  Atty.  Gen., 
177.) 

Power  of  Auditor  and  Comptroller  stated.  (Waters  v.  United  States,  21  Ct. 
Cls.,  37,  38.) 

The  rule  that  a  final  decision  upon  a  knowledge  of  all  the  facts  made  by  an 
officer  authorized  to  decide  on  claims  against  the  Government  is  not  liable  to 
be  reopened  and  reviewed  by  his  successor  in  office  unless  the  decision  is 
founded  on  mistakes  in  matters  of  fact  arising  from  errors  in  calculation,  or  the 
absence  of  material  testimony  afterwards  discovered  and  produced,  is  well 
established.  (U.  S.  v.  Bank  of  Metropolis,  15  Pet.,  377;  Rollins  and  Presbrey 
v.  U.  S.,  23  Ct.  Cls.,  123.) 

Attorney  General  Taney  said:  "For  if  a  final  decision,  upon  a  knowledge  of 
all  the  facts,  made  by  an  officer  authorized  to  decide  on  claims  against  the 
Government,  is  liable  to  be  opened  and  reviewed  by  his  successor  in  office, 
every  change  in  the  officer  will  produce  a  new  hearing  of  the  claim,  and  the 
accounts  of  the  Government  will  always  remain  open  and  unsettled."  (2  Op. 
Atty.  Gen.,  464;  see  also  14  Op.  Atty.  Gen.,  275;  18  Int.  Rev.  Rec,  28,  and 
cases  there  cited;  also  13  Op.  Atty.  Gen.,  388,  457.) 

When  an  account  has  once  been  adjusted  by  the  accounting  officers,  it  can 
not  be  reopened  unless  relief  is  afforded  by  special  act.  (4  Op.  Atty.  Gen.,  378; 
12  id.,  386.) 

A  decision  in  the  Court  of  Claims,  while  it  is  not  binding,  is  authority  for  the 
head  of  a  department  to  reopen  a  case.     (9  Op.  Atty.  Gen.  (Black),  422.) 

The  accounting  officers  of  the  Treasury  are  not  authorized  to  reopen  accounts 
for  the  purpose  of  correcting  decisions  upon  questions  of  law  subsequently  held 
to  be  erroneous.     (VI  Comp.  Dec,  91.) 

The  principle  of  res  adjudicate  applies  to  departmental  action  of  a  final  nature. 
(20  Op.  Atty.  Gen.,  280;  XI  Comp.  Dec,  459,  676.) 

New  evidence  discovered.     (IX  Comp.  Dec,  107.) 

Not  the  duty  of  a  head  of  department  to  make  estimates  for  appropriations 
to  pav  claims  which  the  law  does  not  provide  for.  (Pitman  et  al.  v.  United 
States,  20  Ct.  Cls.,  253.) 

Accounting  officers  can  not  revise  judgments  of  court.  (O'Gradv  v.  United 
States,  22  Wall.,  641.) 


Subpoenas  to  witnesses  in  matters  relating  to  claims. 

Sec.  184.  Any  head  of  a  Department  or  Bureau  in  which  a  claim 
against  the  United  States  is  properly  pending  may  apply  to  any  judge 
or  clerk  of  any  court  of  the  United  States,  in  any  State,  District,  or 
Territory,  to  issue  a  subpoena  for  a  witness  being  within  the  juris- 
diction of  such  court,  to  appear  at  a  time  and  place  in  the  subpoena 
stated,  before  any  officer  authorized  to  take  depositions  to  be  used  in 
the  courts  of  the  United  States,  there  to  give  full  and  true  answers 
to  such  written  interrogatories  and  cross-interrogatories  as  may  be 
submitted  with  the  application,  or  to  be  orally  examined  and  cross- 
examined  upon  the  subject  of  such  claim. 


424  APPENDIX. 

No  payment  to  person  in  arrears  to  the  United  States. 

Sec.  1766.  No  money  shall  be  paid  to  any  person  for  his  compensa- 
tion who  is  in  arrears  to  the  United  States,  until  he  has  accounted  for 
and  paid  into  the  Treasury  all  sums  for  which  he  may  be  liable.  In 
all  cases  where  the  pay  or  salary  of  any  person  is  withheld  in  pursuance 
of  this  section,  the  accounting  officers  of  the  Treasury,  if  required  to 
do  so  by  the  party,  his  agent  or  attorney,  shall  report  forthwith  to  the 
Solicitor  of  the  Treasury  the  balance  due;  and  the  Solicitor  shall, 
within  sixty  days  thereafter,  order  suit  to  be  commenced  against  such 
delinquent  and  his  sureties. 

Set-offs.  (Bonnafon's  case,  14  Ct.  Cls.,  4S4;  Taggart's  case,  17  Ct.  Cls.,  322; 
28  Int.  Rev.  Rec,  162;  17  Op.  Atty.  Gen.,  677;  McKnight  v.  United  States, 
98  U.  S.,  179.) 

Money  offered  in  compromise  can  not  be  set  off  against  taxes  assessed. 
(Boughton  v.  United  States,  13  Ct.  Cls.,  284.) 

Money  due  to  an  employee  of  the  Government,  and  in  the  hands  of  a  disburs- 
ing officer,  can  not  be  attached  by  a  process  issued  from  a  State  court.  (10  Op. 
Atty.  Gen.,  120.) 

Meaning  and  scope  of  Sec.  1766,  where  a  clerk  is  a  judgment  debtor  of  the 
United  States.     (26  Op.  Atty.  Gen.,  77.) 

Deduction  of  debt  due  the  United  States  from  any  judgment  recovered  or  claim  allowed. 

[Act  of  Mar.  3,  1875  (18  Stat.,  481).] 

That  when  any  final  judgment  recovered  against  the  United  States 
or  other  claim  duly  allowed  by  legal  authority,  shall  be  presented  to 
the  Secretary  of  the  Treasury  for  payment,  and  the  plaintiff  or  claim- 
ant therein  shall  be  indebted  to  the  United  States  in  any  manner, 
whether  as  principal  or  surety,  it  shall  be  the  duty  of  the  Secretary  to 
withhold  payment  of  an  amount  of  such  judgment  or  claim  equal  to 
the  debt  thus  due  to  the  United  States ;  and  if  such  plaintiff  or  claim- 
ant assents  to  such  set-off,  and  discharges  his  judgment  or  an  amount 
thereof  equal  to  said  debt  or  claim,  the  Secretary  shall  execute  a  dis- 
charge of  the  debt  due  from  the  plaintiff  to  the  United  States. 

But  if  such  plaintiff,  or  claimant,  denies  his  indebtedness  to  the 
United  States,  or  refuses  to  consent  to  the  set-off,  then  the  Secretary 
shall  withhold  payment  of  such  further  amount  of  such  judgment,  or 
claim,  as  in  his  opinion  will  be  sufficient  to  cover  all  legal  charges  and 
costs  in  prosecuting  the  debt  of  the  United  States  to  final  judgment. 

And  if  such  debt  is  not  already  in  suit,  it  shall  be  the  duty  of  the 
Secretary  to  cause  legal  proceedings  to  be  immediately  commenced  to 
enforce  the  same,  and  to  cause  the  same  to  be  prosecuted  to  final  judg- 
ment with  all  reasonable  dispatch. 

And  if  in  such  action  judgment  shall  be  rendered  against  the  United 
States,  or  the  amount  recovered  for  debt  and  costs  shall  be  less  than 
the  amount  so  withheld  as  before  provided,  the  balance  shall  then  be 
paid  over  to  such  plaintiff  by  such  Secretary  with  six  per  cent  interest 
thereon  for  the  time  it  has  been  withheld  from  the  plaintiff. 

As  to  interest,  see  Stepham's  case  (26  Int.  Rev.  Rec,  314),  and  section  966, 
page  394. 

Sanborn's  case,  decision  of  First  Comptroller.     (28  Int.  Rev.  Bee,  265.) 

Suits  of  United  States  against  individuals;  what  credits  allowed. 

Sec.  951.  In  suits  brought  by  the  United  States  against  individuals, 
no  claim  for  a  credit  shall  be  admitted,  upon  trial,  except  such  as 
appear  to  have  been  presented  to  the  accounting  officers  of  theTreas- 


APPENDIX.  425 

ury,  for  their  examination,  and  to  have  been  by  them  disallowed,  in 
whole  or  in  part,  unless  it  is  proved  to  the  satisfaction  of  the  court 
that  the  defendant  is,  at  the  time  of  the  trial,  in  possession  of  vouchers 
not  before  in  his  power  to  procure,  and  that  he  was  prevented  from 
exhibiting  a  claim  for  such  credit  at  the  Treasury  by  absence  from 
the  United  States  or  by  some  unavoidable  accident. 

Section  957,  page  414. 

United  States  v.  Kimball  (101  U.  S.  (11  Otto),  725);  Western  Union  Railroad 
Co.  v.  United  States  (101  U.  S.,  543;  26  Int.  Rev.  Rec.,  165). 

In  an  action  by  the  United  States  to  recover  an  alleged  debt,  the  defendant 
can  not  recover  an  affirmative  judgment  against  the  Government  on  a  counter 
claim,  although  it  may  be  determined  that  there  is  a  balance  due  him.  (U.  S. 
v.  Gillies,  144  Fed.  Rep.,  991;  U.  S.  v.  Pierson,  145  Fed.  Rep.,  814.) 

Priority  of  United  States  in  insolvent  estates. 

Sec.  3466.  Whenever  any  person  indebted  to  the  United  States  is 
insolvent,  or  whenever  the  estate  of  any  deceased  debtor,  in  the  hands 
of  the  executors  or  administrators,  is  insufficient  to  pay  all  the  debts 
due  from  the  deceased,  the  debts  due  to  the  United  States  shall  be 
first  satisfied;  and  the  priority  hereby  established  shall  extend  as 
well  to  cases  in  which  a  debtor,  not  having  sufficient  property  to  pay 
all  his  debts,  makes  a  voluntary  assignment  thereof,  or  in  which  the 
estate  and  effects  of  an  absconding,  concealed,  or  absent  debtor  are 
attached  by  process  of  law,  as  to  cases  in  which  an  act  of  bankruptcy 
is  committed. 

Lewis,  trustee,  v.  United  States.     (92  U.  S.,  618;  22  Int.  Rev.  Rec,  186.) 

Act  of  July  1,  1898  (30  Stat.,  544-566),  to  establish  a  uniform  system  of  bank- 
ruptcy throughout  the  United  States,  amended  by  act  of  July  1,  1898;  acts  of 
February  5,  1903,  June  15,  1906,  and  June  25,  1910. 

Debts  which  have  priority.     (Sec.  64,  act  of  July  1,  1898.) 

A  discharge  in  bankruptcy  does  not  release  a  bankrupt  from  taxes  due.  (Sec. 
17,  act  of  July  1,  1898.) 

The  right  of  the  United  States  to  priority  of  payment  does  not  extinguish 
or  supersede  a  specific  lien.  (United  States  v.  Duncan,  4  McLean,  607;  9  Op. 
Atty.  Gen.,  28.) 

The  right  to  priority  is  not  a  lien  upon  the  debtor's  property,  but  a  right  to 
receive  payment  out  of  the  general  estate  or  funds  of  the  debtor  before  other 
claims  are  satisfied.     (United  States  v.  Eggleston,  23  Int.  Rev.  Rec,  113.) 

Procedure  in  case  of  property  assessed  in  hands  of  receiver.     (T.  D.  667.) 

Liability  of  Executors,  etc.,  to  United  States. 

Sec.  3467.  Every  executor,  administrator,  or  assignee,  or  other 
person,  who  pays  any  debt  due  by  the  person  or  estate  from  whom  or 
for  which  he  acts,  before  he  satisfies  and  pays  the  debts  due  to  the 
United  States  from  such  person  or  estate,  shall  become  answerable  in 
his  own  person  and  estate  for  the  debts  so  due  to  the  United  States,  or 
for  so  much  thereof  as  may  remain  due  and  unpaid. 

The  priority  of  the  United  Stales,  under  the  provisions  of  sections  3466  and 
3467,  R.  S.,  extends  to  all  classes  of  debts,  and  to  all  the  debtor's  estate  which 
comes  to  the  hands  of  his  assignee.  The  assignee  becomes  a  trustee  for  the 
United  States,  and,  when  he  has  notice  of  the  debt  due  the  Government,  he 
can  not  escape  personal  liability  for  the  amount  of  it,  to  the  extent  of  the  value 
of  the  assets  coming  to  his  hands,  if  he  fails  to  provide  for  it  before  making  dis- 
tribution to  other  creditors.     (United  States  v.  Barnes,  31  Fed.  Rep.,  705.) 

Permanent  annual  appropriations. 

Sec.  3689.  There  are  appropriated,  out  of  any  moneys  in  the 
Treasury  not  otherwise  appropriated,  for  the  purposes  hereinafter 
specified,  such  sums  as  may  be  necessary  for  the  same  respectively; 


426  APPENDIX. 

and  such  appropriations  shall  be  deemed  permanent  annual  appro- 
priations. 

vL«  >j*  *i*  jij  Of  He  sb 

Refunding  moneys  erroneously  received  and  covered : 
To  refund  moneys  received  and  covered  into  the  Treasury  before  the 
payment  of  legal  and  just  charges  against  the  same. 

^  ^  ^  *  ^=  *  * 

Allowances  and  drawbacks  (internal  revenue) : 

Indefinite  appropriation  to  pay  allowance  or  drawback  on  articles 
on  which  any  internal  duty  or  tax  shall  have  been  paid  when  said 
articles  are  exported  under  the  act  of  July  one,  eighteen  hundred  and 
sixty-two,  chapter  one  hundred  and  nineteen  [section  three  thousand 
four  hundred  and  forty-one]. 

See  as  to  appropriation  to  pay  drawback  on  tobacco,  section  3386,  page  276. 
No  appropriation  is  made  for  paying  drawback  on  stills  allowable  under  act  of 
March  1,  1879. 

Refunding  taxes  illegally  collected  (internal  revenue) : 

To  refund  and  pay  back  duties  erroneously  or  illegally  assessed  or 
collected  under  the  internal-revenue  laws. 

Redemption  of  stamps  (internal  revenue) : 

Of  such  sum  of  money  as  may  be  necessary  to  repay  the  amount  or 
value  paid  for  internal-revenue  stamps  which  may  have  been  spoiled, 
destroyed,  or  rendered  useless  or  unfit  for  the  purpose  intended,  or 
which  through  mistake  may  have  been  improperly  or  unnecessarily 
used. 

*f*  *j*  jj*  #j*  ^*  *j*  ?f* 

Application  of  moneys  appropriated. 

Sec.  3678.  All  sums  appropriated  for  the  various  branches  of  ex- 
penditure in  the  public  service  shall  be  applied  solely  to  the  objects 
lor  which  they  are  respectively  made,  and  for  no  others. 

No  expenditures  in  excess  of  appropriations — Penalty  for  violation. 

Sec.  3679  [as  amended  by  sec.  4,  act  of  Mar.  3,  1905,  and  act  of  Feb. 
27 ,  1906,  sec.  3  (34  Stat. ,49)  {urgent  deficiency  appropriation  act)].  No 
Executive  Department  or  other  Government  establishment  of  the 
United  States  shall  expend,  in  any  one  fiscal  year,  any  sum  in  excess 
of  appropriations  made  by  Congress  for  that  fiscal  year,  or  involve 
the  Government  in  any  contract  or  other  obligation  for  the  future 
payment  of  money  in  excess  of  such  appropriations  unless  such  con- 
tract or  obligation  is  authorized  by  law.  Nor  shall  any  Department 
or  any  officer  of  the  Government  accept  voluntary  service  for  the 
Government  or  employ  personal  service  in  excess  of  that  authorized 
by  law,  except  in  cases  of  sudden  emergency  involving  the  loss  of 
human  life  or  the  destruction  of  property.  All  appropriations  made 
for  contingent  expenses  or  other  general  purposes,  except  appropria- 
tions made  in  fulfillment  of  contract  obligations  expressly  authorized 
by  law,  or  for  objects  required  or  authorized  by  law  without  reference 
to  the  amounts  annually  appropriated  therefor,  shall,  on  or  before 
the  beginning  of  each  fiscal  year,  be  so  apportioned  by  monthly  or 
other  allotments  as  to  prevent  expenditures  in  one  portion  of  the  year 
which  may  necessitate  deficiency  or  additional  appropriations  to 
complete  the  service  of  the  fiscal  year  for  which  said  appropriations 


APPENDIX.  427 

are  made;  and  all  such  apportionments  shall  be  adhered  to  and 
shall  not  be  waived  or  modified  except  upon  the  happening  of  some 
extraordinary  emergency  or  unusual  circumstance  which  could  not  be 
anticipated  at  the  time  of  making  such  apportionment,  but  this  pro- 
vision shall  not  apply  to  the  contingent  appropriations  of  the  Senate 
or  House  of  Representatives;  and  in  case  said  apportionments  are 
waived  or  modified  as  herein  provided,  the  same  shall  be  waived  or 
modified  in  writing  by  the  head  of  such  Executive  Department  or 
other  Government  establishment  having  control  of  the  expenditure, 
and  the  reasons  therefor  shall  be  fully  set  forth  in  each  particular  case 
and  communicated  to  Congress  in  connection  with  estimates  for  any 
additional  appropriations  required  on  account  thereof.  Any  person 
violating  any  provision  of  this  section  shall  be  summarily  removed 
from  office  and  may  also  be  punished  by  a  fine  of  not  less  than  one 
hundred  dollars  or  by  imprisonment  for  not  less  than  one  month. 

Sec.  9.  [Act  of  June  30, 1906  (34  Stat.,  764)  (sundry  civil  appropria- 
tion act).]  No  act  of  Congress  hereafter  passed  shall  be  construed  to 
make  an  appropriation  out  of  the  Treasury  of  the  United  States,  or 
to  authorize  the  execution  of  a  contract  involving  the  payment  of 
money  in  excess  of  appropriations  made  by  law,  unless  such  Act  shall 
in  specific  terms  declare  an  appropriation  to  be  made  or  that  a  con- 
tract may  be  executed. 

By  the  act  of  July  7,  1884,  deficiency  appropriation  act  (23  Stat.,  254),  the 
Secretary  of  the  Treasury  ia  required  to  report  to  ( !ongresa  at  the  commencement 
of  each  session  amount  due  claimants  upon  claims  allowed  in  whole  or  in  part. 

Unauthorized  contracts  prohibited. 

Sec.  3732.  No  contract  or  purchase  on  behalf  of  the  United  States 
shall  be  made,'  unless  the  same  is  authorized  by  law,  or  is  under  an 
appropriation  adequate  to  its  fulfillment,  except  in  the  War  and  Navy 
Departments,  for  clothing,  subsistence,  forage,  fuel,  quarters,  or  trans- 
portation, which,  however,  shall  not  exceed  the  necessities  of  the  cur- 
rent year. 

19  Op.  Atty.  Gen.,  650. 

Expenditure  of  balances  of  appropriations. 

Sec.  3690.  All  balances  of  appropriations  contained  in  the  annual 
appropriation  bills,  and  made  specifically  for  the  service  of  any  fiscal 
year,  and  remaining  unexpended  at  the  expiration  of  such  fiscal  year, 
shall  only  be  applied  to  the  payment  of  expenses  properly  incurred 
during  that  }Tear,  or  to  the  fulfillment  of  contracts  properly  made  with- 
in that  year;  and  balances  not  needed  for  such  purposes  shall  be  carried 
to  the  surplus  fund.  This  section,  however,  shall  not  apply  to  appro- 
priations known  as  permanent  or  indefinite  appropriations. 

Department  Circular  No.  133,  dated  December  15,  1903,  requires  that  all 
unexpended  balances  of  annual  appropriations  be  deposited  to  the  credit  of  the 
Treasurer  of  the  United  States  as  soon  as  practicable  after  the  expiration  of  the 
fiscal  year  for  which  they  were  made. 

Unexpended  balances  of  appropriations  after  two  years  to  be  covered  into  Treasury. 

[3690a.]  Sec.  5.  [Act  of  June  20,  1874  (18  Stat.,  110).]  That 
from  and  after  the  first  day  of  July,  eighteen  hundred  and  seventy- 
four,  and  of  each  year  thereafter,  the  Secretary  of  the  Treasury  shall 
cause  all  unexpended  balances  of  appropriations  which  shall  have 


428  APPENDTX. 

remained  upon  the  books  of  the  Treasury  for  two  fiscal  years  to  be 
carried  to  the  surplus  fund  and  covered  into  the  Treasury: 

Provided,  That  this  provision  shall  not  apply  to  permanent  specific 
appropriations.     *     *     * 

XI  Comp.  Dec,  400. 

Funds  in  the  hands  of  disbursing  officers.     (15  Op.  Atty.  Gen.,  357.) 

Sec.  10.  [Act  of  Mar.  4,  1909  (35  Stat.,  1027)  (sundry  civil  appro- 
priation act).]  The  Secretary  of  the  Treasury  shall  cause  all  unex- 
pended balances  of  appropriations  which  remained  on  the  books 
of  the  Treasury  on  the  first  day  of  July,  nineteen  hundred  and  four, 
except  permanent  specific  appropriations,  judgments  and  findings 
of  courts,  trust  funds,  and  appropriations  for  fulfilling  treaty  obliga- 
tions with  the  Indians,  to  be  carried  to  the  surplus  fund  and  covered 
into  the  Treasury:  Provided,  That  such  sums  of  said  balances  as  may 
be  needed  to  pay  contracts  existing  and  not  fully  discharged  at  the 
date  of  this  Act  shall  remain  available  for  said  purposes.  For  the 
purposes  herein  declared  no  appropriation  made  prior  to  July  first, 
nineteen  hundred  and  four,  shall  be  construed  to  be  a  permanent 
specific  appropriation  unless  by  its  language  it  is  specifically  and  in 
express  terms  made  available  for  use  until  expended. 

Advances  of  public  moneys  prohibited. 

Sec.  3648.  No  advance  of  public  money  shall  be  made  in  any  case 

whatever.     And  in  all  cases  of  contracts  for  the  performance  of  any 

service,  or  the  delivery  of  articles  of  any  description,  for  the  use  of  the 

United  States,  payment  shall  not  exceed  the  value  of  the  service 

rendered,  or  of  the  articles  delivered  previously  to  such  payment.     It 

shall,  however,  be  lawful,  under  the  special  direction  of  the  President, 

to  make  such  advances  to  the  disbursing  officers  of  the  Government 

as  may  be  necessary  to  the  faithful  and  prompt  discharge  of  their 

respective  duties,  and  to  the  fulfilment  of  the  public  engagements. 
*     *     * 

XII  Comp.  Dec,  67. 

Assignment  of  claims  void,  unless,  etc. 

Sec.  3477.  All  transfers  and  assignments  made  of  any  claim  upon 
the  United  States,  or  of  any  part  or  share  thereof,  or  interest  therein, 
whether  absolute  or  conditional,  and  whatever  majT  be  the  considera- 
tion therefor,  and  all  powers  of  attorney,  orders,  or  other  authorities 
for  receiving  payment  of  any  such  claim,  or  of  any  part  or  share  there- 
of, shall  be  absolutely  null  and  void,  unless  they  are  freely  made  and 
executed  in  the  presence  of  at  least  two  attesting  witnesses,  after  the 
allowance  of  such  a  claim,  the  ascertainment  of  the  amount  due,  and 
the  issuing  of  a  warrant  for  the  payment  thereof.  Such  transfers, 
assignments,  and  powers  of  attorney,  must  recite  the  warrant  for  pay- 
ment, and  must  be  acknowledged  by  the  person  making  them,  before 
an  officer  having  authority  to  take  acknowledgment  of  deeds,  and  shall 
be  certified  by  the  officer;  and  it  must  appear  by  the  certificate  that 
the  officer,  at  the  time  of  the  acknowledgment,  read  and  fully  explained 
the  transfer,  assignment,  or  warrant  of  attorney  to  the  person  acknowl- 
edging the  same. 

United  States  v.  Gillis  (95  U.  S.,  407);  Spofford  v.  Kirk  (-97  U.  S.,  484);  Mc- 
Knight  v.  United  States  (98  U.  S.,  185);  Goodman  v.  Niblack  (102  U.  S.,  560; 


APPENDIX.  429 

11  Op.  Atty.  Gen.,  520;  16  id.,  262);  Lopez  v.  United  States  (35  Int.  Rev.  Rec, 
31;  17  Op.  Atty.  Gen.,  545);  Price  v.  Forrest  (173  U.  S.,  410). 

Payment  to  attorney  in  fact  holding  unrevoked  power  of  attorney  executed 
prior  to  allowance  of  claim  good  as  between  the  Government  and  claimant. 
(Bailey  etal.  v.  United  States,  109  U.  S.,  432;  29  Int.  Rev.  Rec,  420.) 

This  section  does  not  apply  to  transfers  by  operation  of  law  (Erwin  v.  United 
States,  97  U.  S.,  392;  Butler  v.  Goreley,  146  U.  S.,  303). 

Indorsement  and  payment  of  Treasury  warrants.  (See  Dept.  Cir.  No.  41,  Apr. 
23,  19.02.) 

Assignment  of  claims — laws  and  decisions  considered.     (VI  Cornp.  Dec,  101.) 

22  Op.  Atty.  Gen.,  637;  25  ibid.,  279. 

Attorneys  before  the  Treasury  Department. 

[Extract  from  the  deficiency  appropriation  act  of  July  7,  1884  (23  Stat.,  258).] 

Sec.  3.  *  *  *  That  the  Secretary  of  the  Treasury  may  prescribe 
rules  and  regulations  governing  the  recognition  of  agents,  attorneys, 
or  other  persons  representing  claimants  before  his  Department,  and 
may  require  of  such  persons,  agents,  and  attorneys,  before  being  rec- 
ognized as  representatives  of  claimants,  that  they  shall  show  that  they 
are  of  good  character  and  in  good  repute,  possessed  of  the  necessary 
qualifications  to  enable  them  to  render  such  claimants  valuable  serv- 
ice, and  otherwise  competent  to  advise  and  assist  such  claimants  in 
the  presentation  of  their  cases.  And  such  Secretary  may,  after  due 
notice  and  opportunity  for  hearing,  suspend  and  disbar  from  further 
practice  before  his  Department  any  such  person,  agent,  or  attorney, 
shown  to  be  incompetent,  disreputable,  or  who  refuses  to  comply  with 
the  said  rules  and  regulations,  or  who  shall  with  intent  to  defraud,  in 
any  manner  willfully  and  knowingly  deceive,  mislead,  or  threaten  any 
claimant  or  prospective  claimant,  by  word,  circular,  letter,  or  by 
advertisement. 

Drafts  in  payment  of  claims  to  be  delivered  to  claimant,  and  not  to  attorneys. 
(32  Int.  Rev.  Rec,  325.) 

Regulations  governing  attorneys  and  agents  practicing  before  the  Treasury 
Department.  (Dept.  Cir.  No.  13,  Feb.  6,  1886;  Dept.  Cir.  No.  94,  Oct.  14,  1890; 
36  Int.  Rev.  Rec,  327.) 

Delivering  warrants  to  attorneys.     (25  Op.  Atty.  Gen.,  279.) 

Duplicate  checks  authorized  whenever  any  original  check  is  lost,  stolen,  or  destroyed. 

Sections  3646  and  3647,  amended  by  the  act  of  February  23,  1909.  (35  Stat., 
643.)     Regulations  No.  2,  revised,  page  100. 

Letters,  packages,  etc.,  on  Government  business  sent  free — Penalty  envelopes. 

Sec.  5.  [Act  of  Mar.  3,  1877  (19  Stat,  335).]  That  it  shall  be 
lawful  to  transmit  through  the  mail  free  of  postage  any  letters, 
packages,  or  other  matters  relating  exclusively  to  the  business  of  the 
Government  of  the  United  States:  Provided,  That  every  such  letter 
or  package,  to  entitle  it  to  pass  free,  shall  bear  over  the  words 
"Official  business"  an  endorsement  showing  also  the  name  of  the 
Department,  and,  if  from  a  bureau  or  office,  the  names  of  the  Depart- 
ment, and  bureau  or  office,  as  the  case  may  be,  whence  transmitted. 
And  if  any  person  shall  make  use  of  any  such  official  envelope  to  avoid 
the  payment  of  postage  on  his  private  letter,  package,  or  other  matter 
in  the  mail,  the  person  so  offending  shall  be  deemed  guilty  of  a  mis- 
demeanor, and  subject  to  a  fine  of  three  hundred  dollars,  to  be 
prosecuted  in  any  court  of  competent  jurisdiction. 

Sec  6.  That  for  the  purpose  of  carrying  this  act  into  effect,  it  shall 
be  the  duty  of  each  of  the  Executive  Departments  of  the  United 


430  APPENDIX. 

States,  to  provide  for  itself  and  its  subordinate  officers  the  necessary 
envelopes;  and  in  addition  to  the  endorsement  designating  the 
Department  in  which  they  are  to  be  used,  the  penalty  for  the  unlawful 
use  of  these  envelopes  shall  be  stated  thereon. 

15  Op.  Atty.  Gen.,  262;  16  ibid.,  455.     17  ibid.,  255,  264. 

As  to  the  Philippines,  24  ibid.,  534. 

Section  29  of  the  act  of  March  3,  1879  (20  Stat.,  355),  amended  by  the  act  of 
July  5,  1884  (23  Stat.,  156),  extends  the  provisions  of  the  above  act  to  all  officers 
of  the  United  States  Government,  not  including  Members  of  Congress,  except  to 
pension  agents  or  other  officers  who  receive  a  fixed  allowance  for  their  service, 
including  expenses  for  postage.  Includes  United  States  Commissioners.  (17 
Op.  Atty.  Gen.,  183,  631.) 

Abuse  of  official  frank.    (Circular  letter,  Nov.  25, 1895;  41  Int.  Rev.  Rec,  489.) 

Unlawful  use  of  penalty  envelopes.  (Circular  No.  344;  36  Int.  Rev.  Rec, 
149;  Circular  No.  599;  T.  D.,  319.) 

The  right  to  use  penalty  envelopes.     (T.  D.,  265;  T.  D.,  833.) 

Fraudulent  use  of  official  envelopes.  (Sec.  227,  act  of  Mar.  4,  1909,  35  Stat., 
1134.) 

Sec.  2.  [Act  of  Mar.  3, 1883  (22  Stat,  563).]  *  *  *  And  it  shall 
be  the  duty  of  the  respective  Departments  to  inclose  to  Senators, 
Representatives,  and  Delegates  in  Congress,  in  all  official  communi- 
cations requiring  answers,  or  to  be  forwarded  to  others  penalty 
envelopes  addressed  as  far  as  practicable,  for  forwarding  or  answering 
such  official  correspondence. 

Inclosing  envelopes  with  return  addresses.  (Act  of  July  5,  1884,  23  Stat., 
158.) 

Government  to  have  priority  in  transmission  of  telegrams. 

Sec.  5266.  Telegrams  between  the  several  Departments  of  the 
Government  and  their  officers  and  agents,  in  their  transmission  over 
the  lines  of  any  telegraph  company  to  which  has  been  given  the  right 
of  way,  timber,  or  station  lands  from  the  public  domain  shall  have 
priority  over  all  other  business,  at  such  rates  as  the  Postmaster- 
General  shall  annually  fix.  And  no  part  of  any  appropriation  for 
the  several  Departments  of  the  Government  shall  be  paid  to  any  com- 
pany which  neglects  or  refuses  to  transmit  such  telegrams  in  accord- 
ance with  the  provisions  of  this  section. 

Official  telegraphing.     (Dept.  Cir.  No.  160,  Oct.  20,  1893.) 

Government  rates  for  telegraphing.  (Dept.  Cir.  100,  Aug.  5,  1902.  Regula- 
tions No.  2,  revised  July  1,  1908,  p.  82.) 

Telegrams  of  a  personal  character  addressed  to  Office  of  the  Commissioner 
of  Internal  Revenue  must  be  prepaid.  Where  a  response  to  such  dispatches  is 
required  payment  therefor  must  be  provided  for  by  the  person  in  interest. 
(T.  D.,  19221,  1898.)  # 

In  addressing  official  telegraphic  messages,  it  is  necessary  to  use  only  the 
words  "Commissioner  Internal  Revenue,  Washington,  D.  G,"  the  name  of  the 
Commissioner  or  of  a  deputy  commissioner  being  superfluous.  (T.  D.,  444, 
1901.) 

Disposition  of  useless  papers. 

The  Act  to  authorize  and  provide  for  the  disposition  of  useless  papers  in  the 
Executive  Departments,  approved  February  16,  1889  (25  Stat.,  672;  35  Int. 
Rev.  Rec,  62;  1  Supp.  R.  S.,  644),  provides  that  whenever  there  shall  be  in  any 
one  of  the  executive  departments  an  accumulation  of  papers,  which  are  not 
needed  or  useful  in  the  transaction  of  the  current  business,  and  have  no  per- 
manent value  or  historical  interest,  it  shall  be  the  duty  of  the  head  of  the 
department  to  submit  to  Congress  a  report  of  that  fact,  accompanied  by  a  con- 
cise statement  of  the  condition  and  character  of  such  papers. 

After  destruction  has  been  authorized  by  Congress,  it  is  the  duty  of  the  head 
<>f  the  department  to  sell  such  papers  as  waste  paper,  after  due  publication,  to 
pay  the  proceeds  into  the  Treasury,  and  make  report  to  Congress. 


APPENDIX.  431 

This  act  was  amended  by  the  sundry  civil  appropriation  act  of  March  2, 
1895  (28  Stat.,  933),  "so  as  to  include  in  its  provisions  any  accumulation  of 
files  of  papers  of  a  like  character  therein  described  now  or  hereafter  in  the 
various  public  buildings  under  the  control  of  the  several  executive  depart- 
ments of  the  Government." 


Chapter  5. 


Officers,  clerics,  and  employees — Extra  services — Holding  two  offices — ■ 
Prohibition  as  to  business — Penalty  for  prosecuting  claims  against 
the  Government — Perquisites —  Fees — Political  contributions — Pres- 
ents to  superiors,  etc. 

President  authorized  to  prescribe  regulations. 

Sec.  1753.  The  President  is  authorized  to  prescribe  such  regula- 
tions for  the  admission  of  persons  into  the  civil  service  of  the  United 
States  as  may  best  promote  the  efficiency  thereof,  and  ascertain  the 
fitness  of  each  candidate  in  respect  to  age,  health,  character,  knowl- 
edge, and  ability  for  the  branch  of  service  into  which  he  seeks  to 
enter;  and  for  tins  purpose  he  may  employ  suitable  persons  to  con- 
duct such  inquiries,  and  may  prescribe  their  duties,  and  establish 
regulations  for  the  conduct  of  persons  who  may  receive  appointments 
in  the  civil  service. 

Preference  of  persons  disabled  in  military  or  naval  service. 

Sec.  1754.  Persons  honorably  discharged  from  the  military  or 
naval  service  by  reason  of  disability  resulting  from  wounds  or  sick- 
ness incurred  in  the  line  of  duty,  shall  be  preferred  for  appointments 
to  civil  offices,  provided  they  are  found  to  possess  the  business 
capacity  necessary  for  the  proper  discharge  of  the  duties  of  such 
offices. 

Not  repealed  by  the  civil-service  act.  (Sec.  7,  act  Jan.  1G,  1883.  22  Stat., 
403.) 

17  Op.  Atty.  Gen.,  194;  27  Op.  Atty.  Gen.,  490,  July  28,  1909;  Keim  v. 
U.  S.,  117  U.  S.,  290,  affirming  33  Ct.  Cls.,  174. 

Executive  order,  preference  of  veterans.  (Int.  Rev.  Cir.  No.  644;  T.  D. 
681.) 

The  matter  of  capability  and  personal  fitness  is  a  matter  of  judgment  for  the 
appointing  power.     (19  Op.  Atty.  Gen.,  318.) 

Transfer  of  duties  and  preference  of  soldiers'  and  sailors'  widows. 

Sec.  3.  Act  of  August  15,  1876.  (19  Stat,  169.)  That  whenever, 
in  the  judgment  of  the  head  of  any  department,  the  duties  assigned  to 
a  clerk  of  one  class  can  be  as  well  performed  by  a  clerk  of  a  lower  class 
or  by  a  female  clerk,  it  shall  be  lawful  for  him  to  diminish  the  number 
of  clerks  of  the  higher  grade  and  increase  the  number  of  the  clerks  of 
the  lower  grade  within  the  limit  of  the  total  appropriation  for  such 
clerical  service:  Provided,  That  in  making  any  reduction  of  force  in 
any  of  the  executive  departments,  the  head  of  such  department  shall 
retain  those  persons  who  may  be  equally  qualified  who  have  been 
honorably  discharged  from  the  military  or  naval  service  of  the  United 
States,  and  the  widows  and  orphans  of  deceased  soldiers  and  sailors. 


432  APPENDIX. 

Employees  to   be  paid  from  specific  appropriations  only — Civil  officers,   clerks,  etc.,  elsewhere 
employed  not  to  be  detailed  for  duty  in  the  District  of  Columbia. 

[Extract  from    legislative,  executive,  and  judicial  appropriation    act,  approved    Aug.    5,  1882.     (22 

Stat.,  255.)] 

Sec.  4.  That  no  civil  officer,  clerk,  draughtsman,  copyist,  messen- 
ger, assistant  messenger,  mechanic,  watchman,  laborer,  or  other 
employee  shall  after  the  first  day  of  October  next  be  employed  in 
any  of  the  executive  departments,  or  subordinate  bureaus  or  offices 
thereof  at  the  seat  of  government,  except  only  at  such  rates  and  in 
such  numbers,  respectively,  as  may  be  specificall}-  appropriated  for 
by  Congress  for  such  clerical  and  other  personal  services  for  each  fiscal 
year;  and  no  civil  officer,  clerk,  draughtsman,  copyist,  messenger, 
assistant  messenger,  mechanic,  watchman,  laborer  or  other  employee 
shall  hereafter  be  employed  at  the  seat  of  Government  in  any  execu- 
tive department  or  subordinate  bureau  or  office  thereof,  or  be  paid 
from  any  appropriation  made  for  contingent  expenses,  or  for  any 
specific  or  general  purpose,  unless  such  employment  is  authorized 
and  payment  therefor  specifically  provided  in  the  law  granting  the 
appropriation,  and  then  only  for  services  actually  rendered  in  con- 
nection with  and  for  the  purposes  of  the  appropriation  from  which 
payment  is  made,  and  at  the  rate  of  compensation  usual  and  proper 
for  such  services,  and  after  the  first  day  of  October  next,  section  one 
hundred  and  seventy-two  of  the  Revised  Statutes,  and  all  other  laws 
and  parts  of  laws,  inconsistent  with  the  provisions  of  this  act,  and  all 
laws  and  parts  of  laws  authorizing  the  employment  of  officers,  clerks, 
draughtsmen,  copyists,  messengers,  assistant  messengers,  mechanics, 
watchmen,  laborers  or  other  emplojres  at  a  different  rate  of  pay  or 
in  excess  of  the  numbers  authorized  by  appropriations  made  by  Con- 
gress, be,  and  they  are  hereby,  repealed;  and  thereafter  all  details  of 
civil  officers,  clerks,  or  other  subordinate  employees  from  places  outside 
of  the  District  of  Columbia  for  duty  within  the  District  of  Columbia, 
except  temporary  details  for  duty  connected  with  their  respective 
offices,  be,  and  are  hereby,  prohibited;  and  thereafter  all  moneys 
accruing  from  lapsed  salaries  or  from  unused  appropriations  for  sala- 
ries, shall  be  covered  into  the  Treasury:  Provided,  That  the  sums 
herein  specifically  appropriated  for  clerical  or  other  force  heretofore 
paid  for  out  of  general  or  specific  appropriations  may  be  used  by  the 
several  heads  of  departments  to  pay  such  force  until  the  said  several 
heads  of  departments  shall  have  adjusted  the  said  force  in  accordance 
with  the  provisions  of  this  act;  and  such  adjustment  shall  be  effected 
before  October  first,  eighteen  hundred  and  eighty-two.  And  in  mak- 
ing such  adjustment  the  employees  herein  provided  for  shall,  as  far 
as  may  be  consistent  with  the  interests  of  the  service,  be  apportioned 
among  the  several  States  and  Territories  according  to  population: 
Provided,  further,  That  any  person  performing  duty  in  any  capacity 
as  officer,  clerk,  or  otherwise  in  any  department  at  the  date  of  the 
passage  of  this  act,  who  has  heretofore  been  paid  from  any  appro- 
priation made  for  contingent  expenses  or  for  any  contingent  or  gen- 
eral purpose,  and  whose  office  or  place  is  specifically  provided  for 
herein,  under  the  direction  of  the  head  of  that  department  may  be 
continued  in  such  office,  clerkship,  or  employment  without  a  new 
appointment  thereto,  but  shall  be  charged  to  the  quotas  of  the  sev- 
eral States  and  Territories  from  which  they  are  respectively  appointed 


APPENDIX.  433 

and  nothing  herein  shall  be  construed  to  repeal  or  modify  section  one 
hundred  and  sixty-six  of  the  Revised  Statutes  of  the  United  States. 

It  is  provided  in  the  same  act  (22  Stat.,  230)  that  nothing  in  this  section  shall 
be  construed  to  prevent  the  Commissioner  of  Internal  Revenue  from  detailing 
one  revenue  agent  for  duty  in  his  office. 

Section  166,  R.  S.,  amended  by  section  3,  act  of  May  28,  1896  (29  Stat.,  179), 
allowing  temporary  detail  of  clerks. 

Clerks  can  not  be  detailed  to  examine  collectors'  offices.  (Collins's  case,  3 
Lawrence  Dec,  241;  29  Int.  Rev.  Rec,  43.) 

When  Congress  appropriates  a  sum  "in  full  compensation"  of  the  salary  of  a 
public  officer,  the  incumbent  can  not  recover  an  additional  sum  in  the  Court 
of  Claims,  notwithstanding  a  prior  statute  fixes  the  salary  at  a  larger  amount 
than  the  sum  so  appropriated.     (United  States  v.  Fisher,  109  U.  S.,  143.) 

Transfers  and  details. 

[Extract  from  the  legislative,  executive,  and  judicial  appropriation  act  for  the  fiscal  year  ending  June  30, 

1907,  approved  June  22,  1906.    (34  Stat,,  389.  449.)] 

Sec.  5.  It  shall  not  be  lawful  hereafter  for  any  clerk  or  other  em- 
ployee in  the  classified  service  in  any  of  the  Executive  Departments 
to  be  transferred  from  one  Department  to  another  Department  until 
such  clerk  or  other  employee  shall  have  served  for  a  term  of  three 
years  in  the  Department  from  which  he  desires  to  be  transferred. 

27  Op.  Atty.  Gen.,  421. 

Sec.  6.  Hereafter  it  shall  be  unlawful  to  detail  civil  officers,  clerks, 
or  other  subordinate  employees  who  are  authorized  or  employed 
under  or  paid  from  appropriations  made  for  the  military  or  naval 
establishments,  or  any  other  branch  of  the  public  service  outside  of 
the  District  of  Columbia,  except  those  officers  and  employees  whose 
details  are  now  specially  provided  by  law,  for  duty  in  any  bureau, 
office,  or  other  division  of  any  Executive  Department  in  the  District 
of  Columbia,  except  temporary  details  for  duty  connected  with  their 
respective  offices. 

The  provisions  of  this  act  with  regard  to  transfer  of  clerks  and  employees 
are  not  applicable  to  the  Philippine  Commission  or  to  the  Isthmian  Canal  Com- 
mission.    (26  Op.  Atty.  Gen.,  209.) 

The  Secretary  of  the  Treasury  is  authorized  to  use  for,  and  in  connection 
with,  the  enforcement  of  the  laws  relating  to  the  Treasury  Department  and  the 
several  branches  of  the  public  service  under  its  control,  not  exceeding  at  any 
one  time,  three  persons  paid  from  the  appropriation  for  the  collection  of  customs, 
three  persons  paid  from  the  appropriation  for  salaries  and  expenses  of  internal- 
revenue  agents  or  from  the  appropriation  for  the  foregoing  purpose,  and  three 
persons  paid  from  the  appropriation  for  suppressing  counterfeiting  and  other 
crimes,  but  not  exceeding  four  persons  so  detailed  shall  be  employed  at  any 
one  time  hereunder:  Provided,  That  nothing  herein  contained  shall  be  con- 
strued to  deprive  the  Secretary  of  the  Treasury  from  making  any  detail  now 
otherwise  authorized  by  existing  law.  (Extract  from  sundry  civil  appropria- 
tion act  for  1911;  act  of  June  25,  1910;  36  Stat.,  713.) 

The  same  provision  continued  in  the  Sundry  Civil  Appropriation  Act  for 
1912,  Act  of  March  4,  1911,  providing  for  the  use  of  four  persons  instead  of  three 
paid  from  the  said  several  appropriations,  but  not  exceeding  six  to  be  detailed 
at  any  one  time. 

No  salary  for  office  not  authorized. 

Sec.  1760.  No  money  shall  be  paid  from  the  Treasury  to  any  person 
acting  or  assuming  to  act  as  an  officer,  civil,  military,  or  naval,  as  sal- 
ary in  any  office  when  the  office  is  not  authorized  by  some  previously 
existing  law,  unless  such  office  is  subsequently  sanctioned  by  law. 

72170°— 11 28 


434  APPENDIX. 

Accepting  voluntary  service  prohibited. 

[Sec.  1760a.]  [Act  of  May  1,  1884  (28  Stat.,  17).  Urgent  deficiency 
appropriation  act.}  *  *  *  And  hereafter  no  Department  or  officer 
of  the  United  States  shall  accept  voluntary  service  for  the  Govern- 
ment, or  employ  personal  service  in  excess  of  that  authorized  by  law 
except  in  cases  of  sudden  emergency  involving  the  loss  of  human  life 
or  the  destruction  of  property. 

Reproduced  in  sec.  3679,  amended,  p.  426. 

Public  holidays. 

Sec.  993.  [Revised  Statutes  relating  to  District  of  Columbia.]  The 
following  days,  namely:  The  first  day  of  January,  commonly  called 
New  Year's  day;  the  fourth  day  of  July;  the  twenty-fifth  day  of 
December,  commonly  called  Christmas  day;  and  any  day  appointed 
or  recommended  by  the  President  of  the  United  States  as  a  day  of 
public  fast  or  thanksgiving,  shall  be  holidays  within  the  District. 

^J.  «J-  vL-  «J*  fct*  ^*  *if 

Jf*  iff*  »X"  *1*  "T*  *T*  *T* 

The  22d  of  February  made  a  holiday.     (Act  of  Jan.  31,  1879;  20  Stat.,  277.) 
Inauguration  Day  made  a  holiday.     (Act  of  June  18,  1888;  25  Stat.,  185.) 
"Decoration  Day"  made  a  holiday.     (Act  of  Aug.  1,  1888;  25  Stat.,  353.) 
The  first  Monday  in  September  (labor's  holiday)  made  a  holiday.     (Act  of 
June  28,  1894,  23  Stat.,  96.) 

Legal  holidays  falling  on  Sunday  the  next  day  shall  be  a  holiday.  (Act  of 
Dec.  20,  1881;  22  Stat.,  1.) 

As  to  ministerial  acts  performed  on  Sunday  and  holidays,  see  In  re  Worth- 
ington  (23  Int.  Rev.  Rec,  233). 

Holidays;  hours  of  labor  in  Executive  Departments.  (25  Op.  Atty.  Gen.,  40.) 
The  joint  resolution  of  January  6,  1885  (23  Stat.,  516)  provides  that  per  diem 
employees  of  the  Government  on  duty  at  Washington,  or  elsewhere  in  the 
United  States,  shall  be  allowed  the  following  holidays,  to  wit:  The  first  day  of 
January,  the  twenty-second  day  of  February,  the  fourth  day  of  July,  the  twenty- 
fifth  day  of  December,  and  such  days  as  may  be  designated  by  the  President 
as  days  for  national  thanksgiving,  and  shall  receive  the  same  pay  as  on  other 
days. 

The  joint  resolution  of  February  23,  1887  (24  Stat.,  644),  provides  that  per 
diem  employees  of  the  Government,  on  duty  at  Washington  or  elsewhere  in  the 
United  States,  shall  be  allowed  "Memorial''  or  "Decoration  Day,"  and  the 
fourth  of  July,  as  holiday,  and  shall  receive  the  same  pay  as  on  other  days. 
(11  Comp.  Dec,  393.) 
Pay  of  per  diem  employees  Labor  Day.     (Dept.  Oir.  No.  49,  Aug.  31,  1910.) 

Double    salaries — Compensation    for    extra    services — Extra    allowances — Perquisites,    etc. — 

Prohibition. 

Sec.  1763.  No  person  who  holds  an  office,  the  salary  or  annual  com- 
pensation attached  to  which  amounts  to  the  sum  of  two  thousand  five 
hundred  dollars,  shall  receive  compensation  for  discharging  the  duties 
of  any  other  office,  unless  expressly  authorized  by  law. 

Talbot's  case  (10  Ct.  ('Is.,  426). 

The  statutes  do  not  prohibil  a  person  from  drawing  the  salaries  of  two  dis- 
tinct offices  which  he  legitimately  holds.  (5  Op.  Atty.  Gen.,  765;  6  ibid..  80;  9 
ibid.,  507;  10  ibid.,  446;  15  ibid.,  306;  16  ibid.,  7;  Collins  v.  United  States,  15 
('t.  Cls.,  22.) 

In  construing  statutes  restraining  the  Executive  from  giving  dual  or  extra 
compensation  courts  have  aimed  to  carry  out  the  legislative  intent  by  giving 
them  sufficient  flexibility  not  to  injure  the  public  service  and  sufficient  rigid- 
ity to  prevent  Executive  abuse.  (Landram  v.  United  States  (1880),  16  Ct. 
(Is.,  74;  27  Int.  Rev.  Rec,  80.) 

Xo  person  who  holds  an  office  the  salary  or  annual  compensation  attached 
to  which  amounts  to  the  simp,  of  $2,500  shall  be  appointed  to  or  hold  any  other 
office  to  which  compensation  is  attached  unless  specially  heretofore  or  here- 


APPENDIX.  435 

after  specially  authorized  thereto  by  law,  but  this  shall  not  apply  to  retired 
officers  of  the  Army  or  Navy.     (See  sec.  2,  act  of  July  31,  1894;  28  Stat.,  205; 
16  Comp.  Dec,  823.) 
Holding  State  offices  by  officers  or  employees.     (18  Op.  Atty.  Gen.,  3.) 

Sec.  1764.  No  allowance  or  compensation  shall  be  made  to  any 
officer  or  clerk,  by  reason  of  the  discharge  of  duties  which  belong  to 
any  other  officer  or  clerk  in  the  same  or  any  other  Department;  and  no 
allowance  or  compensation  shall  be  made  for  any  extra  services  what- 
ever, which  any  officer  or  clerk  may  be  required  to  perform,  unless 
expressly  authorized  by  law. 

Section  170  prohibits  payment  to  department  clerks  for  extra  services  unless 
authorized  by  law. 

An  agreement  by  the  Secretary  of  the  Interior  to  pay  a  clerk  in  his  depart- 
ment for  services  rendered  to  the  Government  by  labors  abroad,  the  clerk  still 
holding  his  place  and  drawing  his  pay  as  clerk  in  the  Interior,  held  void .  (Stans- 
bury  v.  United  States,  8  Wall.,  33.) 

See  also  disbursing  clerk's  case  (5  Lawrence  Dec,  401);  Wade's  case  (27 
Int.  Rev.  Rec,  16);  Herndon's  claim  (26  ibid.,  314). 

Sec.  1765.  No  officer  in  any  branch  of  the  public  service,  or  any 
other  person  whose  salary,  pay,  or  emoluments  are  fixed  by  law  or 
regulations,  shall  receive  any  additional  pay,  extra  allowance,  or  com- 
pensation, in  any  form  whatever,  for  the  disbursement  of  public 
money,  or  for  any  other  service  or  duty  whatever,  unless  the  same  is 
authorized  by  law,  and  the  appropriation  therefor  explicity  states  that 
it  is  for  such  additional  pay,  extra  allowance,  or  compensation. 

The  construction  which  has  been  given  to  these  statutes  (sees.  1763,  1764, 
1765)  is  that  the  intent  and  effect  of  them  is  to  forbid  officers  holding  one  office 
to  receive  compensation  for  the  discharge  of  duties  belonging  to  another,  or 
additional  pay,  extra  allowance,  or  compensation  for  such  other  services  or 
duties  where  they  hold  the  commission  of  but  a  single  office,  and  by  virtue  of 
that  office,  or  in  addition  to  the  duties  of  that  office,  have  assigned  to  them  the 
duties  of  another  office.  According  to  the  decisions,  however,  if  an  officer  holds 
two  distinct  commissions,  and  thus  two  distinct  offices,  he  may  receive  the 
salary  for  each.  Converse  v.  United  States,  leading  case  on  questions  of  addi- 
tional compensation  (21  Howard,  463;  15  Op.  Atty.  Gen.,  308,  608).  United 
States  v.  Brindle  (110  U.  S.,  689).  Hartson  v.  United  States  (21  Ct.  Cls.,  451; 
32  Int.  Rev.  Rec,  238).  In  this  case  the  Supreme  Court  went  further  than  it 
had  gone  in  any  previous  decision  and  held  that  where  a  person  holds  two  sepa- 
rate emplovments,  though  not  technically  offices,  he  is  entitled  to  the  compen- 
sation of  both.  Saunders  v.  United  States  (120  U.  S.,  126;  33  Int.  Rev.  Rec,  63); 
Collins  case  (15  Ct.  Cls.,  22);  Whitaker  v.  United  States  (27  Ct.  Cls.,  524; 
43  Int.  Rev.  Rec,  193). 

Deputy  marshal  not  an  "officer,"  and  can  be  paid  for  services  in  assisting 
the  collector  in  destroying  illicit  stills.     (Brown's  case,  28  Int.  Rev.  Rec,  19.) 

Deputy  collector  not  an  "officer"  within  the  meaning  of  section  1765.  (Lan- 
dram  v.  United  States,  16  Ct.  Cls.,  74;  27  Int.  Rev.  Rec,  80.) 

Payment  of  double  compensation  to  a  person  holding  two  appointments  at 
the  same  time.     (10  Comp.  Dec,  726;  see  also  11  ibid.,  392.) 

[Sec.  1765a.]  [Sec.  3,  act  of  Mar.  20,  1874  (18  Stat.,  109;  1  Supp. 
R.  S.,  4?)-]  That  no  civil  officer  of  the  Government  shall  hereafter 
receive  any  compensation  or  perquisites,  directly  or  indirectly,  from 
the  Treasury  or  property  of  the  United  States  beyond  his  salary  or 
compensation  allowed  by  law: 

Provided,  That  this  shall  not  be  construed  to  prevent  the  employ- 
ment and  payment  by  the  Department  of  Justice  of  district  attorneys 
as  now  allowed  by  law  for  the  performance  of  services  not  covered  by 
their  salaries  or  fees. 

This  act  relates  only  to  "  civil  officers."  It  does  not  extend  to  the  clerk  of  a 
supervisor  of  internal  revenue.     (Hedrick  v.  United  States,  16  Ct.  Cls.,  88.) 


436  APPENDIX. 

Payment  of  expenses  of  clerks,  officers,  etc.,  sent  away  as  witnesses. 

Sec.  850.  When  any  clerk  or  other  officer  of  the  United  States  is  sent 
away  from  his  place  of  business  as  a  witness  for  the  Government,  his 
necessary  expenses,  stated  in  items  and  sworn  to,  in  going,  returning, 
and  attendance  on  the  court,  shall  be  audited  and  paid;  but  no  mile- 
age, or  other  compensation  in  addition  to  his  salary,  shall  in  any  case 
be  allowed. 

Expenses  can  be  taxed  in  the  bill  of  costs  for  the  travel  or  attendance  of 
Government  clerks.  (United  States  v.  Sanborn,  135  U.  S.,  271;  36  Int.  Rev. 
Rec,  142.) 

Deputy  collectors  are  included  under  the  words  "other  officer  of  the  United 
States"  according  to  the  ruling  of  the  department. 

Expenses  of  deputy  collectors  incurred  in  attendance  upon  preliminary  exam- 
ination before  U.  S.  Commissioners  in  obedience  to  subpoenas.  (T.  D.,  1640, 
XVI  Comp.  Dec,  838.) 

The  expenses  which  a  deputy  collector  may  properly  charge  in  his  account 
of  actual  expenses  as  a  witness  are  those  only  which  are,  after  he  is  regularly  sub- 
poensed,  incurred  in  traveling  to,  attendance  upon,  and  returning  from  the  court 
or  commissioner  hearing  the  case.  (Instructions  Department  of  Justice  April  1, 
1904,  to  United  States  marshals,  attorneys,  etc.,  p.  123.) 

Expenses  incurred  by  departmental  clerk  in  obeying  subpoena.     (XVI  Comp. 

Dec,  672.) 

No  mileage  beyond  traveling  expenses  allowed. 

[Extract  from  the  Army  appropriation  act  for  the  fiscal  year  ending  June  30,  1875.    Act  of  June  16,  1874. 

(18  Stat.,  72. )1 

*  *  *  Provided,  That  only  actual  traveling  expenses  shall  be 
allowed  to  any  person  holding  employment  or  appointment  under  the 
United  States,  and  all  allowances  for  mileages  and  transportation  in 
excess  of  the  amount  actually  paid  are  hereby  declared  illegal ;  and  no 
credit  shall  be  allowed  to  any  of  the  disbursing  officers  of  the  United 
States  for  payment  or  allowances  in  violation  of  this  provision.    *    *    * 

Certain  business  and  emoluments  forbidden  to  clerks  in  the  Treasury  department. 

Sec.  244.  Every  clerk  emplo}-ed  in  the  Treasury  Department  who 
carries  on  any  trade  or  business  in  the  funds  or  debts  of  the  United 
States,  or  of  any  State,  or  in  any  kind  of  public  property,  or  who  takes 
or  applies  to  his  own  use  any  emolument  or  gain  for  negotiating  or 
transacting  any  business  in  the  Department,  shall  be  deemed  guilty  of 
a  misdemeanor,  and  punished  by  a  fine  of  five  hundred  dollars  and 
removal  from  office. 

Sections  1788,  1789,  Sec  103  Criminal  Code,  Act  of  March  4,  1909,  p.  412. 
Officers  and  clerks  receiving  compensation  In  matters  before  the  departments;  penalty. 

(Sec  1782.)  Sec  113.  [Act  of  Mar.  4, 1909  (35  Stat.,  1109),  Crim- 
inal Code.]  Whoever,  being  elected  or  appointed  a  Senator,  Member 
of  or  Delegate  to  Congress,  or  a  Resident  Commissioner,  shall,  after 
his  election  or  appointment  and  either  before  or  after  he  has  qualified, 
and  during  his  continuance  in  office,  or  being  the  head  of  a  depart- 
ment, or  other  officer  or  clerk  in  the  employ  of  the  United  States,  shall, 
directly  or  indirectly,  receive,  or  agree  to  receive,  any  compensation 
whatever  for  any  services  rendered  or  to  be  rendered  to  any  person, 
either  by  himself  or  another,  in  relation  to  any  proceeding,  contract, 
claim,  controversy,  charge,  accusation,  arrest,  or  other  matter  or 
thing  in  which  the  United  States  is  a  party  or  directly  or  indirectly 
interested,  before  any  department,  court-martial,  bureau,  officer,  or 
any  civil,  military,  or  naval  commission  whatever,  shall  be  fined  not 
more  than  ten  thousand  dollars  and  imprisoned  not  more  than  two 
years;  ami  shall,  moreover,  thereafter  be  incapable  of  holding  any 


APPENDIX.  437 

office  of  honor,  trust,  or  profit  under  the  Government  of  the  United 
States. 

Contracts  with  the  Government  by  executive  officers.  (14  Op.  Atty.  Gen., 
482.) 

Prohibition  against  officers  taking  money  or  other  valuable  consideration  for 
procuring  places  or  contracts.  (Sec.  1781  superseded  by  sec.  112,  act  of  Mar. 
4,  1909  (Criminal  Code). 

Officers  and  employees  of  Internal  Revenue  Bureau  prohibited  from  acting 
as  agents  for  surety  companies.     (Treas.  Dec.  (1899),  No.  21025.) 

Officers  prosecuting  claims  against  the  Inited  States;  penalty. 

(Sec.  5498.)  Sec.  109.  [Act  of  Mar.  4,  1909  (35  Stat,  1107),  Crim- 
inal Code.]  Whoever,  being  an  officer  of  the  United  States,  or  a  per- 
son holding  any  place  of  trust  or  profit,  or  discharging  any  official 
function  under,  or  in  connection  with,  any  Executive  Department  of 
the  Government  of  the  United  States,  or  under  the  Senate  or  House 
of  Representatives  of  the  United  States,  shall  act  as  an  agent  or  attor- 
ney for  prosecuting  any  claim  against  the  United  States,  or  in  any 
manner,  or  by  any  means,  otherwise  than  in  discharge  of  his  proper 
official  duties,  shall  aid  or  assist  in  the  prosecution  or  support  of  any 
such  claim,  or  receive  any  gratuity,  or  any  share  of  or  interest  in  any 
claim  from  any  claimant  against  the  United  States,  with  intent  to 
aid  or  assist,  or  in  consideration  of  having  aided  or  assisted,  in  the 
prosecution  of  such  claim,  shall  be  fined  not  more  than  five  thousand 
dollars,  or  imprisoned  not  more  than  one  year,  or  both. 

Burton  v.  United  States;  202  U.  S.,  344;  indictment  against  a  U.  S.  Senator 
for  practicing  before  a  federal  department. 

Persons  formerly  in  the  Departments  not  to  prosecute  claims  in  them  within  two  years. 

Sec.  190.  It  shall  not  be  lawful  for  any  person  appointed  after  the 
first  day  of  June,  one  thousand  eight  hundred  and  seventy-two,  as  an 
officer,  clerk,  or  employe  in  any  of  the  Departments,  to  act  as  counsel, 
attorney,  or  agent  for  prosecuting  any  claim  against  the  United  States 
which  was  pending  in  either  of  said  Departments  while  he  was  such 
officer,  clerk,  or  employe,  nor  in  any  manner,  nor  by  any  means,  to  aid 
in  the  prosecution  of  any  such  claim,  within  two  years  next  after  he 
shall  have  ceased  to  be  such  officer,  clerk,  or  employe. 

See  20  Op.  Atty.  Gen.,  696. 

Restriction  on  payment  for  services:  oath  to  be  required. 

Sec.  1790.  Xo  officer  or  clerk  whose  duty  it  is  to  make  payments  on 
account  of  the  salary  or  wages  of  any  officer  or  person  employed  in 
connection  with  the  customs  or  the  internal-revenue  service,  shall 
make  any  payment  to  any  officer  or  person  so  employed  on  account  of 
services  rendered,  or  of  salary,  unless  such  officer  or  person  so  to  be 
paid  has  made  and  subscribed  an  oath  that,  during  the  period  for 
which  he  is  to  receive  pay,  neither  he,  nor  any  member  of  his  family, 
has  received,  either  personally  or  by  the  intervention  of  another  party, 
any  money  or  compensation  of  any  description  whatever,  nor  any 
promises  for  the  same,  either  directly  or  indirectly,  for  services  ren- 
dered or  to  be  rendered,  or  acts  performed  or  to  be  performed,  in  con- 
nection with  the  customs  or  internal  revenue;  or  has  purchased,  for 
like  services  or  acts,  from  any  importer,  if  affiant  is  connected  with  the 
customs,  or  manufacturer,  if  affiant  is  connected  with  the  internal- 
revenue  service,  consignee,  agent,  or  custom-house  broker,  or  other 
person  whomsoever,  any  merchandise,  at  less  than  regular  retail 
market  prices  therefor. 


438  APPENDIX. 

Accounts  for  services  of  clerks,  etc.,  must  be  verified. 

Sec.  2693.  No  account  for  the  compensation  for  services  of  any 
clerk,  or  other  person  employed  in  any  duties  in  relation  to  the  collec- 
tion of  the  revenue,  shall  be  allowed,  until  such  clerk  or  other  person 
shall  have  certified,  on  oath,  that  the  same  services  have  been  per- 
formed, that  he  has  received  the  full  sum  therein  charged  to  his  own 
use  and  benefit,  and  that  he  has  not  paid,  deposited,  or  assigned,  or 
contracted  to  pay,  deposit,  or  assign,  any  part  of  such  compensation 
to  the  use  of  any  other  person,  or  in  any  other  way,  directly  or  indi- 
rectly, paid  or  given,  or  contracted  to  pay  or  give,  any  reward  or  com- 
pensation for  his  office  or  employment,  or  the  emoluments  thereof. 

Prohibition  of  contributions,  presents,  etc.,  to  official  superiors. 

Sec.  1784.  No  officer,  clerk,  or  employe  in  the  United  States  Gov- 
ernment employ  shall  at  any  time  solicit  contributions  from  other 
officers,  clerks,  or  employes  in  the  Government  service  for  a  gift  or  pres- 
ent to  those  in  a  superior  official  position;  nor  shall  any  such  officials 
or  clerical  superiors  receive  any  gift  or  present  offered  or  presented  to 
them  as  a  contribution  from  persons  in  Government  employ  receiving 
a  less  salary  than  themselves;  nor  shall  any  officer  or  clerk  make  any 
donation  as  a  gift  or  present  to  any  official  superior.  Every  person 
who  violates  this  section  shall  be  summarily  discharged  from  the  Gov- 
ernment employ. 

Penalty  for  officers  and  employees  giving  to  or  receiving-  from  other  officers  money,  etc.,  for  political 

purposes. 

Sec.  6.  [Act  of  Aug.  15,  1876  (19  Stat.,  169).}  That  all  executive 
officers  or  employees  of  the  United  States  not  appointed  by  the  Pres- 
ident, with  the  advice  and  consent  of  the  Senate,  are  prohibited  from 
requesting,  giving  to,  or  receiving  from,  any  other  officer  or  employee 
of  the  Government  any  money  or  property  or  other  thing  of  value  for 
political  purposes;  and  any  such  officer  or  employee  who  shall  offend 
against  the  provisions  of  this  section  shall  be  at  once  discharged  from 
the  service  of  the  United  States;  and  he  shall  also  be  deemed  guilty 
of  a  misdemeanor,  and  on  conviction  thereof  shall  be  fined  in  a  sum 
not  exceeding  five  hundred  dollars. 

This  act  not  unconstitutional.  (United  States?'.  Curtis,  28  Int.  Rev.  Rec, 
273;  Ex  parte  Curtis,  106  U.  S.,  371;  29  Int.  Rev.  Rec,  18.) 

Members  of  Congress  not  included.     (17  Op.  Atty.  Gen.,  419.) 

The  civil-service  act  (act  of  Jan.  16,  1883;  22  Stat.,  403)  makes  political  assess- 
ments of  Federal  officers,  clerks,  and  employees  a  misdemeanor.  The  following 
are  the  provisions  of  the  law  on  the  subject: 

Sec  2,  paragraph  2,  clause  5.  That  no  person  in  the  public  service  is  for  that 
reason  under  any  obligation  to  contribute  to  any  political  fund,  or  to  render  any 
political  service,  and  that  he  will  not  be  removed  or  otherwise  prejudiced  for 
refusing  to  do  so. 

Sixth.  That  no  person  in  said  service  has  any  right  to  use  his  official  authority 
or  influence  to  coerce  the  political  action  of  any  person  or  body. 

Sections  118,  119,  120,  121,  122,  of  the  act  of  March  4,  1909  *( 35  Stat.,  1088), 
Criminal  Code,  reproducing  sections  11,  12,  13,  14  and  15  of  the  civil  service  act. 

Official  interference  in  political  movements.  (Order  of  President  Cleveland, 
Dept,  Cir.  No.  17.  Sept.  1,  1886.) 

Employees  in  the  competitive  classified  service  shall  take  no  active  part  in 
political  management  or  in  political  campaigns.  (Dept.  Circular  No.  21,  Mar. 
31,  1908.) 

Warning  against  political  assessments  and  partisan  activity  of  office  holders. 
(Dept.  Cir.  No.  60,  Oct.  25,  1910,  T.  D.  31010.) 

Order  of  Commissioner  Yerkes,  dated  December  9,  1905,  addressed  to  col- 
lectors of  internal  revenue: 

"So  far  as  the  classified  service  is  concerned,  employees  must  absolutely 
refrain  from  political  activity." 


I1n~DEX 


Abandoned —                                                                                              Section.  Page. 

Tobacco,  cigars,  etc.,  disposition 3369  267 

Abatement  of  taxes — 

On  deficiencies  of  distillers,  etc.,  in  certain  cases [3309«]  204 

On  distilled  spirits  destroyed  by  casualty 3221  117 

On  spirits  lost  by  leakage  during  transportation  for  export  . .        [33306]  223 
On  spirits  lost  by  leakage  during  transportation  to  manu- 
facturing warehouses [34336]  336 

Power  of  commissioner  as  to 3220  114 

Power  of  Secretary  of  Treasury  as  to 3221  117 

Absence  of — 

Clerks  and  employees 52 

Collectors 3149  66 

Commissioner 323  48 

Persons  who  fail  to  make  returns  required  for  taxation.  3173,  3176,  3237  86,  89, 127 

Stamps  on  cigars 3398  286 

Stamps  on  fermented  liquors 3352  254 

Stamps  on  spirits 3289  180 

Stamps  on   tobacco  and  snuff,   evidence  of  nonpayment 

of  tax 3373  269 

Abstract — 

From  cigar  manufacturer's  book 3390  280 

From  tobacco  or  snuff  manufacturer's  book 3358  259 

Of  collections,  etc.,  to  be  laid  before  Congress  annually 261  55 

Accident — 

At  brewery 3350  253 

Instruments  not  stamped  through 13  338 

Spirits  lost  by 3221,  [33306],  [34336]  117, 

223, 336 

Stamps  lost  or  destroyed  by 3315  209 

Unavoidable  at  distilleries' [3309a],  3310      204,  205 

Accounting  officers — 

Withholding  credits  in  set-off  to  debts  due  United  States..             1766  424 

Accounts — 

Abstract  of,  to  be  furnished  *  'ongress  by  Secretary 261  55 

By  collectors  of  goods  in  bond,  monthly 3444  354 

By  collectors  of  stamps  for  cigars 3395  285 

By  collectors  of  stamps  for  distilled  spirits 3314  208 

By  collectors  of  stamps  for  fermented  liquors 3341  249 

By  collectors  of  stamps  for  tobacco  and  snuff 3369  267 

Of  collectors (act  of  May  27,  1908). .  3146, 3148,  3212  63, 109 

Of  materials  going  into  bonded  manufacturing  warehouse 

to  be  kept  by  collector 23  333 

Of  officers,  etc.,  receiving  public  money,  monthly 3622,  3623      406, 407 

Separate,  for  different  classes  of  receipts 239  55 

To  be  settled  in  Treasury  Department 236  422 

Reopening Note.  423 

Acts  of  Congress — 

Relating  to  internal  revenue  (see  List  op) 17 

Act  of  Mar.  2,  1833,  construction  of 3465  368 

Act  of  Aug.  1,  1888,  to  regulate  the  liens  of  judgments  and 

decrees  of  courts 393 

Act  of  Aug.  8,  1888,  requiring  notice  of  deficiency  in  ac- 
counts of  principals  to  be  sent  to  sureties 372 

439 


440 


INDEX. 


Act  of  June   13,   1898—  Section.            Page. 

Repeal  of 341 

Additional  clerks 53,  328 

Adjournment  of  sale — 

In  case  of  distraint 3190  99 

Of  real  estate 3197  101 

Administrators- 

Not  liable  for  special  tax  under  certain  conditions fl  5  3244  140 

Of  deceased  special  taxpayer  may  continue  the  business. . .  3241  130 

When  liable  for  debts  due  United  States 3467  425 

Admission — 

To  distillery  premises,  how  gained 3270  170 

Adulterated  butter  (act  May  9,  1902)-- 

Caution  notice  to  be  affixed  by  manufacturer 4  301 

Definition  of 4  300 

Exportation  of 4  302 

How  packed 4  301 

Manufacturer  of,  definition  and  special  tax  of 4  143 

Packages  for 4  301 

Sales  by  dealers,  marking,  branding,  etc 4  301 

Sales  by  manufacturers  to  be  made  only  in  original  stamped 

packages 4  301 

Tax  payable  by  stamps 4  302 

Tax,  rate  of . 4  302 

Tobacco  provisions  relative  to  stamps  apply 4  302 

Wholesale  dealers  in,  to  keep  books  and  make  returns  as 

required  by  regulations 6  304 

Wholesale  and  retail  dealers  in,  definition  and  special  tax  of.  4  143 
Penalties — 

For  carrying  on  business  as  manufacturer  of  or  dealer  in,  with- 
out payment  of  special  tax [3242c]  132 

For  failure  to  affix  caution  notice 4  302 

For  sale  of,  not  marked  and  branded  as  required  by  law. .. .  4  301 

Wholesale  dealer  failing  to  keep  books  and  make  returns. ..  6  304 

Adulteration — 

Of  distilled  spirits  before  tax  paid  to  create  fictitious  proof, 

penalty 3252  154 

Advertisements — 

Collectors'  charges  for 13  65 

Of  notice  of  sale  on  distraint 3190  99 

Of  notice  of  sale  of  real  estate 3197  101 

Of  notice  of  sale  of  real  estate  and  personal  property,  decree 

of  court [3197o]  103 

Of  notice  of  seizure If  2  3460  363 

Advances — 

Of  public  moneys  not  to  be  made 3648  428 

Affidavits — 

Falsely  making,  altering,  forging,  etc.,  uttering  or  pub- 
lishing as  true  any  false,  etc 5418,  5479  420 

Making  or  using  by  any  person,  of  any  false,  to  obtain 

payment  of  claim  against  United  States 5438  420 

Affixing  of  stamps  to — 

Adulterated  and  renovated  butter 4  301 

Casks  of  distilled  spirits 3322  214 

Fermented  liquor 3342  250 

Filled  cheese 6  306 

Imported  liquors 11  227 

Mixed  flour 40  312 

Oleomargarine 8-10  295 

Playing  cards 39  343 

Prepared  smoking  opium 38  290 

Rectifiers'  packages 3320  213 

Spirits  packages _ 3287,  3295      178, 196 

Tobacco,  snuff,  and  cigars 3369  267 

Wholesale  liquor  dealers'  packages 3323  214 

Agents.     (See  Internal-revenue  agents.) 


INDEX  441 

Agricultural  and  horticultural  associations —                               Section.  Page. 

Exempt  from  corporation  tax 38  321 

Aiding  and  abetting — 

Illegal  removal  or  concealment  of  spirits 3296  197 

Alaska 356 

Alcohol.     (See  Distilled  spirits.) 

Definition  of 3248  149 

Quantity  of,  in  proof  spirits 3249  149 

Used  in  arts  and  medicinal  compounds 3297  197 

Withdrawal  of,  for  scientific  purposes 3297  197 

Alcoholic  compounds  from  Porto  Rico ]  52 

Alcoholic  strength — 

Fortified  sweet  wine 42  229 

Ale.     (See  Fermented  liquors.) 

Allowance — 

For  distillery  apparatus  destroyed 3332  224 

For  loss  from  leakage  or  evaporation [3294a,  33306,  34336]  185, 

223, 336 

For  stamps  spoiled,  useless,  etc 3426  331 

To  collectors [3148]  63 

Alphabetical  list. — 

Of  special-tax  payers  to  be  kept  in  collector's  office 3240  129 

Altering — 

Obligations  of  the  United  States 5414  420 

Stamps,  marks,  or  brands  on  any  spirits  package 3326  216 

Analytical  chemist — 

Appointment  and  compensation  of 49,  298 

Annual  leave (act  Mar.  15,  1898.) 51,  55 

To  be  exclusive  of   Sundays  and  legal  holidays  (act  Feb. 

24,1899) .* 4  52 

Of  gangers,  storekeepers,  and  storekeeper-gaugers 3157a7  74 

Annual  list.     (See  List.) 

Annual  reports — 

Copies  of  documents  accompanying  report  of  Secretary  to 

be  furnished  Public  Printer,  when 196  55 

Of  Commissioner  of  Internal  Revenue 196,  notes.  55 

Not  to  be  distributed  with  ' '  compliments  of " 196,  notes.  56 

Apothecaries — 

Special  tax  not  imposed  upon,  in  certain  cases 3246  145 

Apparatus — 

For  refining  spirits,  possession  of,  by  dealers 3244  133 

Appeals — 

Circuit  court  of  appeals 395 

From  commissioner's  decision  under  oleomargarine  law 14  298 

In  case  of  collector's  refusal  to  approve  distiller's  bond  ....            3260  159 

To  commissioner  in  case  of  alleged  illegal  taxes 3220,  3226      114, 121 

To  Supreme  Court 699,  708, 1001 ,  1008  395, 

396, 397 
Apples — 

Brandy  made  from,  exemptions 3255  155 

Appointments — 

Additional  clerks 53 

Chief  clerk 320  49 

Collectors 3142  59 

Commissioner 319  45 

Deputy  commissioner 322  48 

Gaugers 3156  72 

Revenue  agents 3152,  3152a  67,  68 

Solicitor  of  internal  revenue 349  48 

Storekeepers 3153  69 

Apportionment — 

Of  sums  appropriated  for  contingent  expenses,  etc 3679  426 

Appraisal  of — 

Goods  seized 3459,  3460      362,  363 

Property  exempt  from  distraint 3187  98 

Seized  distillery,  etc.,  in  case  of  bond  given  for  release 3331  224 


442 


INDEX. 


Appropriations —  Section. 

Application  of 3678 

Collecting  internal  revenue 

For  books  of  reference 

For  detecting  frauds 

For  fees  of  United  States  commissioners,  marshals,  or  clerks 
when  not  to  be  used (act  Aug.  18, 1894) 

For  Internal-Revenue  Office (act  Mar.  4,  1911) 

No  expenditure  in  excess  of 

Permanent  annual 

Unexpended  balances (act  June  20,  1874) 

Approval — 

Of  distillers'  bond,  collectors'  discretion  as  to 

Of  distillers'  bond,  not  to  be  approved  until  law  and  regula- 
tions are  complied  with 

Apricots — 

Brandy  made  from,  exemptions 

Arms — 

For  personal  use  exempt  from  distraint 

Arrears — 

No  money  to  be  paid  to  persons  in  arrears  to  the  United 

States 

Arrest  of — 

Offenders  against  the  United  States 

Persons  charged  with  crime,  duty  of  marshal  (act  Aug.  18, 
1894) 

Persons  in  civil  actions (act  Aug.  13,  1888) 

Persons  operating  illicit  distillery 

Artificially  colored  oleomargarine.     (See  Oleomargarine.) 
Assessments  and  collections — 

Against  fruit  distillers,  notice  to  be  given 

Commissioner  may  make,  in  case  of  neglect  to  make  return. 

Commissioner  to  make,  of  taxes  and  penalties 

Commissioner  within  15  months  of  first  list  may  make 
monthly  or  special  list,  entering  omissions,  etc 

For  corporation  tax (act  Aug.  5,  1909) 

For  export  stamps  issued 

Former  laws  made  applicable 

May  be  certified  from  one  collector  to  another  for  collection. 

No  remission  of,  when 

No  suit  to  be  maintained  for  restraining 

Of  stamp  taxes  within  two  years  when  article  is  removed 
without  being  stamped 

Of  taxes  on  property  sold  under  distraint 

On  adulterated  butter 

On  bay  rum,  and  articles  containing  alcohol  from  Porto 
Rico 

On  brandy  from  apples,  peaches,  grapes,  pears,  pineapples, 
oranges,  apricots,  berries,  or  prunes,  removed  without 
compliance  with  law  (act  Mar.  3,  1877,  as  amended  by 
Act  Oct.  18, 1888) 

On  distillers  for  deficiency  and  excess  of  materials  used.. 

On  fermented  liquor,  not  to  be  based  on  materials  used 

On  filled  cheese (act  June  6,  1896) 

On  mixed  flour (act  June  13,  1898) 

On  oleomargarine  removed  without  being  stamped 
(act  Aug.  2,  1886) 

On  playing  cards (act  Aug.  28,  1894) 

On  tobacco,  snuff,  and  cigars  sold  or  removed  without  being 
properly  stamped 

On  spirits 3251, 3251a 

On  spirits  in  case  of  excessive  loss 3293 

On  spirits  removed  without  deposit  in  warehouse 3253 

On  wine  spirits  withdrawn  for  fortification  of  sweet  wine 3 

Assignee — 

When  liable  for  debts  due  the  United  States 3467 


[3463a] 


3679 

3689 

[3690a] 

3260 

3261 

3255 

3187 


1766 
1014 


[3281a] 


[3309a] 
3176 
3182 

3182 
38 
3314 
31 
3209 
3220 
3224 

3437 

3191 

4 

32516 


8 

3309  [3309a] 
3337a 
10 
41 

9 

47 


3371 


Page. 

426 

54 

54 

366 

402 

49 

426 

425 

427 

159 
162 
155 

97 

424 

389 

403 
386 
175 


204 
89 
92 

92 
320 
208 
373 
107 
114 
120 

337 

99 

300 

152 


194 
202, 204 
245 
307 
312 

296 

347 

268 
150, 151 
182 
155 
233 

425 


INDEX.  443 

Assignments  of—  Section.  Page. 

Claims 3477  428 

Gaugers 3156  72 

Revenue  agents 3152  67 

Storekeeper-gaugers [3153c?]  70 

Storekeepers 3154  71 

Assuming — 

To  be  revenue  officer 32,  66  416 

Attachments— 

Against  persons  disobeying  summons  of  collector 3175  88 

Attorney  General — 

Recommendation  of,  in  cases  of  compromise  after  suit 3229  123 

To  provide  counsel 189,  364  400 

Written  permission  necessary  to  discontinuance  of  prose- 
cution of  distiller  under  section  3257 3230  124 

Attorneys.     (See  District  Attorneys.) 

Employment  of,  by  heads  of  departments  forbidden 189  400 

May    be    disbarred    from    practicing    before    department 

(act  July  7,  1884) 429 

Officers  of  United  States  and  persons  connected  with  de- 
partments acting  as 5498  437 

Persons  formerly  in  departments  acting  as 190  437 

Rules  concerning (act  July  7,  1884) 429 

To  be  provided  by  Attorney  General 364  400 

Auction.     (See  Sales.) 

Sale  of  forfeited  boilers,  stills,  machinery,  materials 3450  358 

Sale  of  property  forfeited  or  seized  under  internal-revenue 

laws 3459,  3460      362,  363 

Sale  of  realestate 3208  106 

Sale  on  distraint  for  taxes 3190,  3197        99, 101 

Auditor — 

To  certify  accounts  of  officer  receiving  or  disbursing  public 

money  to  Solicitor  of  Treasury  in  certain  cases 3625,  3633  408 

B. 

Balances  of  appropriations — 

Unexpended,  how  to  be  applied 3690  427 

Unexpended,  to  be  covered  into  Treasurv  after  two  years 

(act  June  20,  1874) . . . . .        [3690a]  427 

Banks  and  bankers — 

Certified  checks  to  be  lien  against  assets,  .(act  Mar.  2,  1911) 109 

Definition  of 3407  348 

Internal-revenue  taxes  on,  other  than  national  banks 3407,  3417      348,  352 

Receiving  money  on  deposit,  loan  or  for  use  from  public 

officers  unlawfully,  guilty  of  embezzlement 5497  411 

Returns  by 3414,  3416      351,  352 

Taxes  on  circulation 3408  348 

Taxes  on  notes  used  for  circulation 3412,  3413      349,  350 

Taxes  when  payable 3409  349 

Bankrupt  estates 425 

Barrels — 

Fermented  liquors,  fractional  parts  of 3339  246 

Marks  on 3349  253 

Measure  of  contents 3339  246 

Of  spirits  produced  to  be  reported  to  collectors  by  distiller.  3308  202 

Bay  rum — 

From  Porto  Rico,  tax  on 32516  152  . 

Beer.     (See  Fermented  liquors.) 

Berries — 

Brandy  made  from,  may  be  exempt  from  certain  provisions.  3255  155 

Grown  in  United  States,  wines,  etc.,  made  from,  exempt 

from  tax 3328  217 

Bill  in  chancery — 

To  enforce  lien  of  United  States  on  real  estate 3207  105 

Blanks — 

Commissioner  may  contract  for 321  45 


444 


INDEX. 


14 


Blank  books — 

Allowance  for,  to  collectors 

Commissioner  may  contract  for 

Blending — 

Of  fortified  sweet  wine 

Board  of  appeal — 

On  controverted  decisions  of  commissioner  as  to  injurious 

substances,  constitution  of (act.  Aug.  2.  1886) 

Boilers  (distillery) — 

Manufacturer  of,  to  give  notice  before  removing  from  place 

of  manufacture 

Not  to  be  set  up  without  permit 

Not  to  be  used  for  distilling  on  certain  premises 

Used  in  generating  steam,  etc.,  in  distillery,  where  may  be 

located 

Bond- 
Bottling  of  spirits  in.     (See  Bottling,  etc.) 
Bonds — 

For  change  of  package  for  exportation 

For  deposit  in  special  bonded  warehouse  for  fruit  brandy.  . 
For  exportation  of — 

Fruit  brandy  for  fortification  of  wines 

Mixed  flour 

Oleomargarine — 

Playing  cards 

Spirits 

Tobacco,  snuff,  and  cigars 

Tobacco,  snuff,  and  cigars,  for  drawback 

For  goods  seized  in  case  of,  under  section  3453 

For  goods  seized,  for  claimant  of,  under  section  3460 

For  peddler  of  tobacco 

For  release  of  distillery 

For  warehouse 

For  warehouses  where  certain  articles  are  manufactured  for 

export 

For  withdrawal  of — 

Alcohol  for  scientific  purposes 3297  [3297a] 

Distilled  spirits  by  manufacturers  of  cordials,  etc [3433a] 

In  lieu  of  consent  in  certain  cases 3262 

In  suits,  original  bond  may  be  required 886 

Interest  on 963 

Not  required  from  United  States  in  case  of  appeal 1001 

Official  examination  of 5 

Renewal  of,  four  years 5 

Sureties  on  official,  to  be  notified  of  default  of  principal 1 

Surety  company  may  be  accepted  as  sole  surety  (act  Aug. 

13,  1894) 

Transportation,  for  exportation  of— 

Spirits 

Tobacco,  etc 

Warehousing 

Bonds  of — 

Brewers 3336 

Collectors 3143 

Collectors  as  disbursing  agents 3144 

Denaturers  of  alcohol 1,  2,  3,  4 

Deputy  collectors [3148] 

Distillers 3260,  3261,  3262,  3280,  3281 

Fortifiers  of  pure  sweet  wine 3,  42,  45 


Section . 

Page. 

13 

65 

321 

45 

3266 


[3330a] 
4 

46 

44 

16 

43 

3330 

3385 

3385 

3459 

3461 

3381 

3331 

3293 

3433 


[3330a] 

[3385a] 

3293 


Gaugers 

Manufacturers  of — 

Adulterated  butter. 

Cigars 

Filled  cheese 


3156 

4 

3387 

5 


234 


298 


3265 

165 

3265 

165 

3266 

166 

166 


222 
193 

231 
313 
298 
346 
220 
273 
273 
362 
364 
272 
224 
181 

334 

197, 198 
336 
163 
413 
394 
397 
371 
371 
372 

368 

221 

275 
181 

243 
59 
62 

239,  241 
64 

159, 162, 

172, 173 
228, 

230, 233 
72 

300 
279 
305 


INDEX. 


445 


5 

294 

37 

290 

3355 

257 

23 

333 

3639 

408 

[3153a] 

70 

3153 

69 

5 

371 

Distiller,  to  be  preserved  and  produced 3304 

Filled-eheese  manufacturers 5 

Manufacturers  of  adulterated  or  renovated  butter  (act  of 

May  9,  1902) 4 

Manufacturers  of  oleomargarine (act  Aug.  2,  1886  i  5 

Manufacturers  of  smoking  opium 37 

Rectifiers  and  wholesale  liquor  dealers 3318 

Retail  dealer  in  leaf  tobacco 35 

Storekeepers 3301,  3302 

Tobacco  and  snuff  manufacturers 3358 

Users  of  denatured  alcohol 1 

Wholesale  dealers  in  oleomargarine,  adulterated  or  renovated 

butter (act  May  9,  1902)  6 

Bottling — 

Of  fermented  liquors 3354 


354 


334 


Bonds  of— Continued.  Section.  Page. 

Manufacturers  of — Continued. 

Oleomargarine 

Smoking  opium 

Tobacco  and  snuff 

Manufacturer  in  bonded  manufacturing  warehouse 

Officers  employed  in  the  disbursement  of  public  moneys.. . 

Storekeeper  and  gauger 

Storekeepers 

Where  filed 

Bonded  account — 

To  be  rendered  monthly  by  collector 3444 

Bonded  manufacturing  warehouse  (act  Aug.  5,  1909) — 

Accounts  to  be  kept  by  collector 23 

Articles  intended  for  export  may  be  manufactured  in  with- 
out payment  of  tax 

Bond  of  manufacturer 

Drawback  of  internal-revenue  tax  on  spirits  used  in  certain 
preparations 

List  of  articles  to  be  manufactured  to  be  filed  with  Secre- 
tary of  the  Treasury 

Manufacture  of  distilled  spirits  in  prohibited 

Materials  not  to  be  conveyed  into  without  payment  of  tax. . 

No  articles  to  be  withdrawn  except  for  shipment 

Reimportation  of  goods  manufactured  in 

Section  3433  applicable 

Supplies  may  be  purchased  from,  by  certain  war  vessels 

Waste  materials  may  be  withdrawn  under  certain  condi- 
tions   

When  articles  manufactured  in  can  be  withdrawn 

Bonded  period  for  spirits 

Bonded  warehouse.     (See  Warehouses.) 

Special,  for  brandy  made  from  apples,  peaches,  or  grapes 
(see  Special  bonded  warehouses) 

Cordials,  etc.,  may  be  manufactured  in,  for  exportation 

without  stamps 3433 

Books — 

Authenticated  copies  of 882 

Containing  evidence   of  statement  of   property  liable   to 
distraint  to  be  exhibited  to  collector  on  demand 3189 

Of  trade,  etc.,  exempt  from  distraint 3187 

Production  of,  in  suits (act  June  22,  1874 )  5 

Production  of,  may  be  required  by  collector 3173 

School,  exempt  from  distraint 3187 

Of  reference 

Books  to  be  kept  by — 

Brewers 1 3337,  3338 

Cigar  manufacturers 3390 

Dealers  in  leaf  tobacco 3360 

Denaturers  of  alcohol 1 

Distillers 3303,  3304,  3305,  3318a 


23 

333 

23 

333 

25 

336 

23 

334 

23 

333 

23 

333 

23 

333 

26 

337 

23 

334 

2982 

367 

23 

334 

23 

333 

293a 

183 

334 

391 

98 
98 
390 
87 
98 
54 

244, 245 

280 

261 

239 

200, 

201,212 
201 
305 

301 
294 
290 
211 
261 
199, 200 
259 
239 

304 

254 


446 


INDEX. 


Bottling  of  distilled  spirits  in  bond  (act  of  Mar.  3,  1897)— 

Bottle  stamps 

Bottling  fruit  brandy 

Brands  on  cases 

Dates  of  inspection  and  bottling 

Filtering,  reducing,  etc.,  permitted 

Inspection,  etc.,  of  spirits  bottled  for  export 

Mingling  of  same  spirits 

No  drawbacks 

No  exemption  from  State,  etc.,  laws 

Punishment  for  counterfeiting  stamps,  etc 

Punishment  for  reusing  stamps,  bottles,  regulations,  etc 

Regauging 

Regulations 

Stamps  on  cases 

Tax  to  be  collected  if  export  cases  are  opened,  changed,  etc. 

Tax  to  be  paid  on  deficiency 

Trade-marks 

Use  of  bottling  room  restricted 


Brands  on  packages  of — 

Cigars 

Containing  not  less  than  5  gallons 

Distilled  spirits  removed  into  warehouse 

Fermented  liquor 

Filled  cheese 

Imported  liquor 

Manufactured  tobacco 

Mixed  flour 

Oleomargarine 

Spirits  removed  from  warehouse,  tax  paid 

Brands — 

Changing,  etc.,  on  casks  of  spirits 

On  articles  sold  under  distraint  and  forfeiture,  etc 

To  be  effaced,  etc.,  at  the  time  of  emptying  casks 

Brandy.     (See  Distilled  spirits;  Grape  brandy.) 

Made  from  apples,  peaches,  grapes,  etc.,  may  be  exempted 
from  certain  provisions 

May  be  deposited  in  special  bonded  warehouses  (acts  Mar.  3, 
1877,  and  Oct.  18,  1888) _. 

Wine  and  fruit  pomace  residuum  from  wine,  to  which  arti- 
ficial sweetening  has  been  added,  maybe  used  in  distilla- 
tion of (act  Mar.  2,  1911) 

Breaking  locks — 

Breaking  or  tampering  with  locks,  seals,  etc 

Breaking  up  grounds — 

In  searching  for  pipe,  etc.,  at  distillery  or  rectifying  estab- 
lishment  

Brewers — 

Bond 

Books  of,  monthly  statement,  etc 

Bottling  on  premises  of,  and  bottling  fermented  liquors  from 
unstamped  packages  forbidden 

Carrying  on  business  without  payment  of  special  tax 

< imputation  of  liability  based  upon  purchased  beer ^  5 

Definition  of 11  1 

Drawing  from  packages  without  stamp,  or  with  false,  etc., 
or  without  defacing 

Entries  in  books  of,  verified  by  oath 

Evasion  of  tax  by 

Fraudulently  failing  to  make  entry,  etc.,  or  making  false 
entry 

May,  on  bond,  etc.,  remove  beer  for  export  without  pay- 
ment of  tax (act  June  18,  1890) 

May  sell  or  remove  liquor  becoming  sour  or  damaged 

Monthly  statement  of  sales  at  brewery 

Neglecting  to  affix  or  cancel  stamps,  or  affixing  false,  etc... 

Neglecting  to  keep  books  or  refusing  to  furnish  account 

Notice 


Section. 

Page. 

1 

235 

1 

235 

1 

235 

1 

235 

2 

236 

3 

237 

1 

235 

3 

237 

8 

238 

7 

238 

6 

238 

2 

237 

1-2 

235, 236 

1 

235 

5 

238 

4 

237 

1 

235 

1 

234, 235 

3397 

285 

3323 

214 

3287 

178 

3349 

253 

6 

306 

11 

227 

3362 

263 

37,38 

311 

6 

294 

3295 

196 

3326 

216 

3458 

362 

3324 

215 

3255 

155 

2 

192 

155 

3268, 3311 

167, 206 

3278 

3336 
3337 

3354 
3242 
3244 
3244 

3344 
3338 
3340 

3340 


3347 
3348 
3342 
3340 
3335 


171 

243 
244 

254 
131 
140 
133 

251 
245 

248 

248 

255 
252 
252 
250 
248 
243 


INDEX.  447 

Brewers — Continued.  Section.  Page. 
Not  liable  as  wholesale  malt  liquor  dealer  for  sale  of  own 

original  packages jf  5  3244  140 

Permit  to  conduct  business  at  another  place  on  account  of 

accident 3350  253 

Removal  of  beer  from  brewery  through  pipe  or  conduit  for 

bottling  only 3354  254 

Selling,  removing,  etc.,  packages  without  stamp,  etc.,  or 

with  false 3343  251 

Selling  at  retail  at  brewerv 3348  252 

Special  tax  of r  1  3244  133 

To  brand  packages  of  liquor 3349  253 

To  obtain  stamps  and  affix  same,  etc 7 3342  250 

Unfermented  worts,  when  sold  by  one  brewer  to  another, 

how  taxed .' 3351  253 

When  to  stamp  liquor  removed  under  permit 3345  251 

Building1  and  loan  associations — 

Exempt  from  corporation  excise  tax,  when,  (act  Aug.  5, 1909)  38  321 
Burden  of  proof — 

In  action  for  recoverv  of  taxes  collected  on  second  assess- 
ments   3225  120 

In  case  of  seizure  of  distilled  spirits 3333  225 

Business — 

Officers  and  clerks  restricted  as  to  engaging  in  certain..  244, 1788, 1789      436, 412 

No  other  than  distilling  allowed  on  distillery  premises 3266  166 

Butter.     (Sec  Adulterated  or  renovated  butter.) 
Butterine.     (See  Oleomargarine.) 

C. 

Cancellation  of  stamps  for — 

Cigars 3392  281 

Distilled  spirits 3322  214 

Fermented  liquors 3339,  3342      246, 250 

Filled  cheese 9  307 

Imitation  wines 3328  217 

Mixed  flour 40  312 

Oleomargarine 8  295 

Opium,  for  smoking 39  291 

Playing  cards 39  343 

Tobacco  and  snuff 3369  267 

Cancellation — 

Commissioner  and  Secretary  may  prescribe   means  or  in- 
struments for 3445,  3446       354, 355 

Of  permits  for  fermented  liquors 3345  251 

Cans — 

For  exportation  of  distilled  spirits 3287  178 

Capacity  of  distillery — 

Change  of 3259  158 

Eighty  per  cent  of,  basis  for  taxation 3309  202 

Reduction  of 3311  206 

To  be  ascertained  by  survey 3264  164 

Casks — 

Buying  or  selling,  with  inspection  marks,  after  being  used . .  332  ■  216 

( 'apacity  of,  for  distilled  spirits 3287  178 

Capacity  of,  for  fermented  liquors 3339  246 

Changing,  etc. ,  marks,  stamps,  or  brands  on 332(3  216 

Fraudulent  use  of  any,  having  stamp,  mark,  etc.,  on 3326  216 

Mark,  brand,  or  stamp  on,  to  be  effaced  at  time  of  emptying.  3324  2 1 5 

Of  imported  liquors,  when  emptied,  etc 12  227 

Serial  number  of 3287  178 

Spirits  drawn  into  other,  to  be  gauged  and  branded 3323  214 

To  be  marked  and  stamped,  etc 3287  178 

Transporting  empty,  with  brand  on,  etc 3324  215 

Casualty — 

Destruction  of  spirits  by (sec.  5,  act  June  7, 1906)  3221,      117,119, 

3222,  3223, [3309a],  [33306],  [34336]     119,  223, 

336 


Section. 

Page. 

3169 

81 

3194 

100 

3387 

276 

3218 

113 

70,  989 

398 

4, 3198 

100, 103 

3355 

257 

3383 

272 

4 

301 

3393 

282 

8 

307 

40 

312 

7 

295 

3364 

264 

448  INDEX. 

Certificate — 

Officer  making  a  false 

Of  sale  to  be  prima  facie  evidence  of  right  to  sell 

Certificate  of — 

Cigar  manufacturers 

Due  diligence 

Probable  cause 

Purchase  of  real  estate 3194,  3  L98 

Tobacco  manufacturers 

Tobacco  peddlers 

Certified  checks — 

May  be  received  for  taxes (act  of  Mar.  2,  1911)  108 

Certified  copy — 

Of  list  of  special-tax  payers  to  be  furnished  prosecuting 
officers . 3240  129 

Of  papers  on  file  in  department  of  equal  value  as  original  as 

evidence 882,  886      391,  413 

Caution  notice  on — 

Adulterated  butter 

Cigars 

Filled  cheese 

Mixed  flour 

Oleomargarine 

Tobacco  and  snuff 

Central  denaturing  warehouses — 

For  denaturing  alcohol,  authorized 2  241 

Change  of  stamps — 

Commissioner  of  Internal  Revenue  may  provide  fur  without 

entailing  additional  expense  on  persons  using  same 3446  355 

Champagne — 

Tax  on  imitations  of 3328  217 

Chancery — 

Bill  in,  to  enforce  lien  of  United  States,  may  be  directed  by 

the  Commissioner 3207  105 

Change  in  distilling  apparatus — 

May  be  required  by  Commissioner 3270  168 

Changing — 

Stamps,  marks,  or  brands  on  any  spirits  package 3326  216 

Change  of  package — 

Of  distilled  spirits 3323  214 

Of  distilled  spirits  for  export 3330a  221 

Charitable  bequests — 

Refunding  of  legacy  tax  on (act  of  June  27,  1902) 318 

Checks — 

Duplicates  of  lost,  how  procured 3646, 3647  429 

Certified,  may  be  received  for  taxes 108 

Chemist — 

Appointment  of,  salary,  etc 14  298 

Cheroots  and  cigarettes — 

Held  to  be  cigars  (see  Cigars) 3387  279 

How  to  be  put  up  and  stamped , 3392  281 

Imported 3392  281 

Stamps  on  empty  boxes  to  be  destroyed 3406  289 

Tax  on 3394,  3396      283,  285 

Cherries — 

Brandy  made  from,  may  be  exempt  from  certain  provisions.  3255  155 
Chief  clerk- 
Designated  by  Commissioner 320  49 

Duties  of 173, 174  49 

Child— 

Of  deceased  special-tax  payer  may  carry  on  the  business...  3241  130 

Chloroform — 

Denatured  alcohol  may  be  used  in  manufacture  of 1  241 

Cider- 
See  notes  to  paragraph  4 3244  278 

Cigars  and  cigarettes — 

Abandoned,  condemned,  etc.,  may  be  destroyed 3369  267 

Absence  of  stamp  evidence  of  nonpayment  of  tax 3398  286 


INDEX.  449 

Cigars  and  cigarettes — Continued.  Section.            Page. 

Additional  tax  on 3394              282 

Cigar  boxes  to  be  marked  or  branded 3397              285 

Cigarettes  and  cheroots  held  to  be 3387              279 

Dealers  in fl  8  3244              278 

Dealers  in  materials  used  for,  to  make  sworn  statement  when 

demanded 3391              281 

Dealers  in,  sale  of,  by 3392              281 

Destruction  of  tobacco,  snuff,  and  cigars 3369              267 

Drawback  on,  exported 3386              276 

Empty  tobacco  and  cigar  boxes,  destruction  of  stamps  on. .  3376,  3406      270,  289 

Exportation  of 3385              273 

How  to  be  packed 3392             281 

Imported,  internal-revenue  tax  to  be  paid  in  addition  to  du- 
ties   3402              287 

Imported,  to  be  stamped  and  boxed 3402              287 

Internal-revenue  officers  not  to  be  interested  hi  manufacture 

of 3168                80 

Label  on  boxes 3393              282 

Manufactured  on  shares,  commissions,  etc 3399              287 

Packages  of,  not  to  contain  any  lottery  ticket  or  indecent 

picture 3394              283 

Peddlers  of H  11  3244,             271, 

3381-3384       272, 273 

Rules  for  inspection  of ,  may  be  made  by  Commissioner 3396              285 

Stamps  on,  when  forefeited  or  sold  under  distraint 3369,  3395      267,  285 

Stamps,  requirements  in  regard  to  affixing  and  canceling, 

etc 3369              267 

Tax  on 3394              282 

Taxes  on,  extended  to  those  produced  anywhere  in  the 

United  States 3448              356 

Manufacturers  of — 

Assessments  for  deficiencies 3371              268 

Certificates 3387              279 

Definition,  statement  bond,  records,  books,  etc 3387,  3390      279,  280 

Keeping  up  sign 3388              280 

Record  of,  by  collectors 3389              280 

Returns 3390              280 

Penalties  and  forfeitures — 

Absence  of  stamp  on  cigars  cause  of  forfeiture 3398              286 

Cigars  not  packed  as  prescribed  by  law;  falsely  branding  or 

stamping  the  same 3392              281 

Customs  officer  permitting  imported  cigars  to  pass  out  of  his 

custody  without  payment  of  internal-revenue  tax  and 

having  stamps  affixed,  etc 3402              287 

Failing  to  destroy  stamps  on  empty  cigar  boxes  or  selling, 

giving  away,  accepting  or  using  same  fraudulently 3406              289 

For  cigar  manufacturer  refusing  or  neglecting  to  deliver 

inventory,  keep  the  account,  or  furnish  the  abstract 3390              280 

For  manufacturing  cigars  without  giving  bond  or  obtaining 

certificate 3387              279 

Fornotkeeping  up  sign 3388              280 

Frauds  in  manufacture  of  cigars  on  commission  or  shares 

(forfeiture) 3399              287 

Manufacturers  carrying  on  business  in  violation  of  law 3400              287 

Manufacturers  of  tobacco  or  cigars  omitting  things  required 

or  doing  things  forbidden  where    there   is  no    specific 

penalty  imposed  by  any  other  section 3456             361 

Neglecting  to  affix  required  label  to  cigars  or  removing  label 

therefrom. _ 3393              282 

Purchasing  cigars  not  branded  or  stamped 3404              289 

Removing  cigars  without  properly  boxing,   stamping  or 

branding,  using  false_  stamps,  and  other  offenses  relating 

to  boxing  and  stamping  cigars  (forfeiture) 3397              285 

Removing  or  selling  cigars  unlawfully,  making  false  en  tries, 

or  using  false  stamps  (forfeiture) 3400              287 

72170°— 11 29 


3401 

237 

3403 

289 

3406 

289 

3406 
3393 
3392 
3406 

289 
282 
281 
289 

3387 
3244 
3244 

279 

278 
278 

3394 
3394 

282 

282 

450  INDEX. 

Cigars  and  cigarettes— Continued.  Section.  Page. 

Penalties  and  forfeitures — Continued. 

Selling  cigars  falsely  represented  to  have  been  made  and 
tax  paid  before  July  20,  1868 

Selling  imported  cigars  not  packed  and  stamped  as  required 

by  law 

Cigar  boxes — 

Destruction  of  emptied  stamped  cigar  box 

Giving  away,  accepting,  selling,  buying,  or  using  empty 
stamped,  penalty 

Labels  on  cigar  boxes 

Number  of  cigars  in 

Stamps  on,  emptied,  to  be  destroyed 

Cigar  makers — 

Collector  to  issue  a  certificate  as  to  number 

Definition  of 

To  be  registered  with  collector 

Cigarettes  (see  also  Cigars) — 

Packages  not  to  contain  any  lottery   ticket  or  indecent 
picture 

Tax  on 

Circuit  courts.     (See  United  States  Circuit  and  District 
Courts.) 

Circuit  courts  of  appeals 395 

Circulating  notes — 

Other  than  those  of  national  banks,  tax  on 3412,  3413,  [3413a]      349, 350 

Cisterns — 

Alcohol  may  be  drawn  from,  by  pipe  line  for  denaturation. . 

Commissioner  may  require  fastenings  to  be  put  on 

Receiving,  in  distilleries 

Cistern  room — 

Custody  of 

How  constructed 

Civil-service  law 

See  notes 

Claims — 

Assignment  of ■. 

For  abatement  or  refund  of  taxes  (see  Abatement) 

For  credit  in  suits 951,  957 

For  goods  seized  liable  to  forfeiture 

For  redemption  of  stamps 

For  remission  of  forfeiture  or  for  proceeds 

Making  false 

Officer  or  person  connected  with  departments  not  to  act 
as  agent,  etc.,  in  prosecuting 

Prosecution  of,  by  persons  formerly  in  departments 

Subpoenas  for  persons  to  testify  respecting 

To  be  adjusted  in  Treasury  Department 

Unlawfully  using  papers  relating  to 

Clearance  certificate — 

In  exportation  of  spirits 

In  exportation  of  tobacco,  etc 

Clerks  of  courts — 

To  keep  indices  of  judgment  records  . .  .(act  Aug.  1,  1888) 

Penalty  for  failing  to  deposit  moneys 

Reports  of 

Clerks  or  employees — 

Acting  aa  attorneys  or  agents  in   prosecution  of  claims 
(penalty) 

After  leaving    departments  prohibited    from    prosecuting 
claims  in  them  for  two  years 

Departmental,  not  to  be  transferred  until  after  service  of 
three  years (act  June  22,  1906) 

Employed  outside  of  District  of  Columbia  not  to  be  detailed 
to  District  of  Columbia (act  June  22,  1906) 

Employment  of,  regulated (act  Aug.  5,  1882) 


3 

241 

3270 

168 

3267 

166 

3267 

167 

3267 

166 

438 

3 

50 

3477 

428 

3220 

114 

il,  957 

424,  414 

3460 

364 

3426 

331 

3461 

364 

5438 

420 

5498 

437 

190 

437 

184 

423 

236 

422 

5454 

419 

3330a 

222 

3385a 

275 

2 

394 

5504 

412 

797 

403 

5498 

437 

190 

437 

5 

433 

6 

433 

3 

432 

INDEX.  451 

Clerks  or  employees — Continued.                                                             Section.  Page. 

Hours  of  work  and  absences (act  Mar.  15,  1898)                  7  51 

In  Treasury,  restriction  as  .to  engaging  in  certain  trades 

and  business 244  436 

No  allowances  for  extra  services 1764, 1765  435 

Number  employed  in  collection  of  internal  revenue  not  to 

be  increased 74 

Number  employed  in  Internal-Revenue  Office 49 

Preference  of  soldiers  in  appointments 1754  431 

Prohibited  from  giving  to  or  receiving  from  officers  money 

for  political  purposes 1784  438 

Prohibited  from  making  presents  to  superiors 1784  438 

Receiving  compensation  for  services  in  cases  in    depart- 
ments (penalty) 1782  436 

Restriction  on  payment  for  services;  oath  required 1790,2693      437,438 

Sent  away  as  witnesses,  expenses 850  436 

Temporary  and  additional 53,  328 

Transfer  of,  duties  and   preference  of  soldiers  and  sailors' 

widows (act  Aug.  15,  1876)                  3  431 

Voluntary  service  prohibited (act  May  1 ,  1884)  3679      426, 434 

Incapacitated 3  50 

Closing  out  business — 

Retail  liquor  dealers  not  liable  as  wholesale  liquor  dealers 

for <[5            3244  140 

Clubs- 
See  notes  to  paragraph  4 3244  136 

C.  O.  D.  shipments — 

See  notes  to  paragraph  4 3244  137 

Coin — 

Receivable  in  payment  of  dues 3473  108 

Collection  districts — 

Collector  to  be  appointed  for  each 3142  59 

List  of 37 

Number  of 3141,  3142  58,  59 

President  may  establish 3141  58 

Collections — 

Monthly  statement  of,  to  be  made 3212  109 

Secretary  may  extend  time  for  payment 3210  107 

To  be  paid  daily  into  Treasury 3210  108 

Collectors  of  customs,  duties  of,  relative  to — 

Exportation  of  tobacco,  etc [3385a]  275 

Exportation  of  spirits 3329,  3330     217,  220, 

[3330a]  221 

Imported  cigars 3402  287 

Imported  oleomargarine 10  296 

Imported  tobacco  and  snuff 3377  270 

Collectors  of  customs — 

Certificate  of,  in  case  of  exportation   of   tobacco    for   draw- 
back               3386  276 

Collectors  of  internal  revenue,  duties  and  powers  as  to — 
Accounts — 

Accountability  for  stamps  for  distilled  spirits 3314  208 

Adjustment  of  accounts  of 3146,  3147  63 

Duties  and  liabilities  of,  as  disbursing  officers  and  receivers 

of  public  money 3620-3639,  3643      404,  408 

Failing  to  account 3217  112 

Lists  to  be  transferred  to  successor 3219  113 

To  render  bonded  account  monthly 3444  354 

To  render  revenue  accounts  quarterly  . . .  ('act  May  27,  1908) 406 

To  render  statement  of  entire  amount  of  fees,  commissions, 

etc 3158  74 

To  report  collections 3212  109 

Transmission  of  list  to  district  where  person  liable  resides  or 

has  property,  etc 3209  107 

What  to  be  charged  and  credited  with 3218  113 

To  act  as  disbursing  agents ■ 3144  62 


452  INDEX. 

Collectors  of  internal  revenue,  duties  and  powers  as  to —         Section.  Page. 

Continued. 
Appointment,  supervision  of  employees,  etc. — 

Appointment  of 3142  59 

Bonds 3143  59 

May  appoint  deputies,  etc [3148]  63 

Not  to  discharge  duties  of  other  collectors 3166  79 

Proceedings  against  delinquent 3217,  112, 

3624, 3625, 3633       407, 408 

Responsibility  for  deputies [3148]  64 

Salary  and  commissions  of [3148]  63 

Salary  and   commissions   of,    none   unless   confirmed   by 

Senate (act  Mar.  1,  1879)  13  65 

Salary  and  commissions  of,  none  without  certificate  of  com- 
missioner   3147  63 

Suspension  of [3163a]  76 

To  cause  deputies  to  canvass  districts 3172  86 

To  report  delinquencies  of  officers 3163  76 

Limitation  as  to  number  of  appointments  by.  (act  July7, 1884) 74 

Vacancy  in  office  of 3149  66 

Collections — 

Collections  to  be  paid  into  Treasury  daily 3210  107 

May  accept  certified  checks  for  taxes (act  Mar.  2,  1911) 108 

May  extend  time  for  special  excise  tax  returns  of  corpora- 
tions   38  325 

Receipt  in  lieu  of  stamp  not  to  be  issued 3183  94 

To  collect  amount  due  for  export  stamps 3314  208 

To  collect  tax  on  bay  rum,  etc.,  from  Porto  Rico 32516  152 

To  distrain  for  nonpayment  of  tax 3185,  3187,  3188    96,  97,  98 

To  collect  taxes 3183  94 

To  give  demand  notice  to  pay  taxes : 3184,  3185  95,  96 

To  give  receipts  for  taxes  not  represented  by  stamps 3183a  95 

Distilled  spirits — 

May  accept  distillers'  bond  in  lieu  of  consent  in  certain 

cases 3262  162 

May  designate  temporary  storekeeper 3155  72 

May  enter  distilleries  and   vinegar   establishment,    break 

open  doors  and  windows 3276  170 

May  refuse  to  approve  distillers'  bond 3260  159 

Plan  of  distillery  to  be  made  under  direction  of  collector.  .  3263  163 

To  collect  tax  on  spirits  in  warehouse  by  distraint  in  certain 

cases 3293  182 

To  have  charge  of  keys  of  distillery  locks 3267  167 

To  have  control  of  distillery  warehouse 3271  168 

To  make  survey  of  distillery 3264  164 

To  obliterate  tax-paid  stamps  on  spirits  sold  by  order  of 

court 3334  226 

To  sign  distillery-warehouse  stamps 3287  178 

To  sign  stamps  for  rectified  spirits 3320  213 

To  sign  tax-paid  stamps 3295  196 

To  supervise  duties  of  gaugers 3156  72 

Fermented  liquors — 

To  keep  on  hand  two  months'  supply  of  stamps  for  fer- 
mented liquors;  account  of  stamps  sold 3341  249 

Oleomargarine  and  butter — 

To  approve  bond  of  manufacturer  of  oleomargarine 5  294 

Tobacco  and  cigars — 
May  furnish  stamps  for  tobacco,  snuff,  and  cigars  sold  under 

distraint 

To  approve  tobacco  or  snuff  manufacturer's  bonds 

To  issue  permit  for  removal  of  tobacco,  snuff,  and  cigars  for 

exportation 

To  keep  account  of  cigar  stamps  sold 

To  keep  on  hand  two  months'  supply  of  cigar  stamps 

To  keep  record  of  and  number  of  cigar  manufacturers 

To  keep  three  months'  supply  of  tobacco  and  snuff  stamps. 
To  record  and  number  manufacturers  of  tobacco  and  snuff. 


3369 

267 

3355 

257 

3385 

273 

3395 

285 

3395 

285 

3389 

280 

3369 

267 

3357 

259 

INDEX.  453 

Collectors  of  internal  revenue,  duties  and  powers  as  to —        Section.  Page. 
Continued. 
Property  of  taxpayers,  seizure,  sale  of,  etc. — 

Examination  of  place  where  articles  subject  to  tax  are  kept 

or  made  may  be  made 3177  90 

May  enter,  in  daytime,  premises  where  taxable  articles  are 

kept 3177  90 

May  enter  premises  and  make  list  or  returns  and  add  pen- 
alty    3176, 3177  89,  90 

May  seize  and  sell  lands  in  other  district  in  State 3200  104 

May  seize  and  sell  real  estate 3196  101 

Proceedings  by  collector,  in  case  of  seizure  of  property  of 

value  of  $500  or  less 3460  363 

To  account  for  locks  and  seals 3310  205 

To  keep  conspicuously  in  office  list  of  special-tax  payers. . .  3240  129 
To  seize  property  found  in  possession  in  violation  of  revenue 

laws 3453  359 

Collectors  of  internal  revenue,  miscellaneous  duties  and 
powers — 

As  superintendents  of  export  and  drawback 3161,  3162  75 

Duties  of  collectors  in  using  stamps 3313  207 

How  to  return  lists  of  property  of  nonresident  owners  liable 

to  taxation 3180  91 

May  administer  oaths 3165  78 

May  enter  other  district  and  make  examination 3173  87 

May  purchase  property  stild  on  distraint  for  United  States. .  3192  99 
May  remit  penalty  upon  payment  of  tax  on  unstamped  in- 
struments, when 13  338 

May  sell  property  purchased  at  distraint  sale  for  United 

States,  under  regulations,  etc 3192  99 

May  summon  persons  to  be  examined 3163a — note,  3173  77,  87 

Prohibited  from  engaging  in  certain  business 1788, 1789  412 

To  furnish  stamps  for  playing  cards  and  keep  supply  of 

stamps  on  hand  equal  to  two  months'  sale  of  cards 41  344 

To  keep  record  of  sales 3203  104 

To  keep  register  of  manufacturers  of  playing  cards 40  344 

To  prosecute  for  recovery  of  sums  forfeited 3213  109 

To  record  redemption  of  real  estate 3204  105 

To  report  violations  of  law  to  district  attorneys 3164  77 

To  see  that  the  laws  are  executed 3163  75 

To  transmit  special  excise-tax  returns  to  commissioner 38  324 

Collectors  of  internal  revenue,  penalties  for — 

Being  interested  in  manufacture  of  tobacco,  spirits,  or  fer- 
mented liquors 3168  80 

Collecting  special  tax  from  rectifier  within  600  feet  of  dis- 
tillery   3244  135 

Divulging  operations  of  manufacturers 3167  79 

Failing  to  make  reports 1780,  3169        412,  81 

Issuing  stamps  before  payment [3169a]  82 

Issuing  stamps  for  distilled  spirits  to  other  persons  than  as 

provided  by  law 3316  209 

Commissioner  of  Internal  Revenue,  powers  and  duties 
as  to — 
Appointments,  salaries,  and  supervision  of  officers — 

Appointment  and  salary  of  commissioner 319  45 

General  duties  of  commissioner 321  45 

May  approve  gauger's  bond 3156  72 

May  approve  storekeeper's  bond 3153  69 

May  assign  agents  to  duty  under  direction  of  other  officers. .  3152  67 

May  prescribe  gauger's  fees 3157  73 

May  recommend  that  duties  of  storekeeper  and  gauger  be 

imposed  on  one  person (3153a)  69 

Power  to  suspend  collectors (3163a)  76 

To  assign  storekeepers  to  warehouses 3154  71 

To  certify  to  comptroller  fact  of  due  diligence  by  collector.  3218  113 

To  certify  that  all  reports  of  collectors  have  been  received. .  3147  63 

To  detail  deputy  collector  for  special  duty  in  other  districts.  3149a  66 


454  INDEX. 

Commissioner  of  Internal  Revenue,  powers  and  duties  Section.  Page. 
as  to — Continued. 
Appointments,  salaries,  and  supervision  of  officers — Cont'd. 

To  designate  a  head  of  division  as  chief  clerk 320  49 

To  determine  compensation  of  storekeepers 3153  69 

To  employ  agents 3152  67 

To  employ  chemists  and  microscopists  . .  (act  Aug.  2,  1886)  14  298 

To  notify  President  when  he  suspends  a  collector (3163a)  76 

To  prescribe  amount  of  collector's  bond,  etc 3143  59 

To  prescribe  notice  relative  to  revoking  appointment  of 

deputy  collectors (3148)  64 

To  recommend  allowances  for  collectors  and  deputy  col- 
lectors   (3148)  63 

To  transfer  storekeepers  and  gaugers 3163  76 

Assessments  and  collections — 

For  export  stamps  issued 3314  208 

May  make  correction  of  incomplete  or  imperfect  lists 3182  92 

Of  stamp  taxes  within  two  years 3437  337 

Of  taxes  and  penalties 3176,  3182  89.  92 

On  distilleries  for  deficiencies  and  excess  of  materials  used.  3309  202 
On  fruit  brandy  removed  without   compliance  with  law 

(sec.  8,  Act  Mar.  3,  1877) 8  194 

On     oleomargarine     removed     without     being     stamped 

(sec.  9,  Act  Aug.  2,  1886) 9  296 

On  property  sold  under  distraint 3191  99 

On  spirits  removed  without  deposit  in  warehouse. .  .*. 3253  155 

On    tobacco,    snuff,    and    cigars   removed    without  being 

stamped. 3371  268 

To  authorize  proceedings  before   suit   for  taxes  is  com- 
menced   _ 3214  111 

To  estimate  for  expenses  of  collecting,  etc 3671  47 

To  prescribe  form  of  return  of  persons  liable  to  tax 3173  86 

To  prescribe  manner  of  giving  notice  that  tax  is  due 3185  96 

Cigars  and  tobacco — 
May  prescribe  entries  to  be  made  in  books  of  retail  dealers 

in  leaf  tobacco 35  261 

Prescribe  form  of  book  to  be  kept  by  cigar  manufacturers. .  3390  280 

Prescribe  form  of  book  to  be  kept  by  tobacco  manufacturers  3358  259 

Prescribe  form  of  cigar  manufacturer's  inventory 3390  280 

Prescribe  form  of  tobacco  manufacturer's  inventory 3358  259 

Prepare  stamps  for  payment  of  tax  on  tobacco  and  snuff,  etc .  3369  267 

Prepare  stamps  for  tax  on  cigars 3395  285 

Distilled  spirits — 

May  accept  bonds  in  lieu  of  consent  of  owner  of  land  on 

which  distillery  is  situated 3262  163 

May  discontinue  unsafe  or  unfit  warehouse 3272  169 

May  exempt  distillers  of  brandy  from  apples,  etc.,  from  cer- 
tain provisions;  also  certain  small  distilleries _ 3255,  [3255a]       155, 156 

May  prescribe  manner  of  appraising  land  on  which  are  dis- 
tillery buildings  and  apparatus 3262  163 

May  require  bond  for  additional  tax  and  prescribe  rules  for 

reentry  for  deposit  and  for  new  bond [3293n]       183, 184 

May  require  change  of  distilling  apparatus 3270  168 

May  require  fastenings,  locks  or  seals 3270  168 

May  require  new  bond  for  warehoused  spirits 3293  182 

Procure  stamps  for  distilled  spirits 3312  207 

To  approve  warehouse 3271  168 

To  designate  officers  to  make  surveys 3264  164 

To  dispose  of  forfeited  spirits 3450  358 

To  prescribe  form  of  distiller's  book 3303  200 

To  prescribe  form  of  distiller's  bond 3260  159 

To  prescribe  form  of  distiller's  or  rectifier's  not  ice 3259  158 

To  prescribe  form  of  rectifier's  book 3318  211 

To  prescribe  form  of  rectifier's  notice  of  intention  to  rectify.  [3317a]  210 

To  prescribe  form  of  rectifier's  return 33  I  '<  210 

To  prescribe  form  of  storekeeper's  book 3302  200 

To  prescribe  form  of  wholesale  liquor  dealers'  book 3318  211 


38 

320 

321 

45 

3166 

79 

3229 

123 

INDEX.  455 

Commissioner  of  Internal  Revenue,  powers  and  duties         Section.  Page. 

as  to — Continued. 
Distilled  spirits — Continued. 

To  prescribe  hydrometer  and  gauging  instruments. 3249  149 

To  prescribe  manner  of  constructing  receiving  cisterns  at 

distilleries 3267  166 

To  prescribe  manner  of  marking  casks  removed  to  ware- 
house    3287  178 

To  prescribe  manner  of  marking  spirits  intended  for  export. .  3330  220 

To  provide  locks  and  seals 3267  167 

Fermented  liquors — - 

Procure  stamps,  etc.,  for  fermented  liquors 3341  249 

Miscellaneous — 

For  duties  and  powers  of  commissioner  relative  to  corpora- 
tion excise  tax,  see  under  head  of  corporations  (act  Aug.  5, 
1909) 

Make  contract  for  printing 

May  authorize  officers  to  make  seizures 

May  compromise  cases,  with  advice  of  the  Secretary 

May  make  allowance  for  stamps  spoiled,  destroyed,  or  ren- 
dered useless 3426  331 

May  make  change,  etc.,  in  stamps  and  prescribe  instru- 
ments for  attaching  and  canceling,  etc.;  also  marks  and 
labels  for 3445,  3446      354,  355 

May  remit  and  refund  taxes  erroneously  assessed 3220  114 

May  repay  to  officers  money  recovered  for  acts  in  perform- 
ance of  official  duties 3220  114 

Playing  cards,  to  estimate  and  within  two  years  to  assess  tax 
unpaid  thereon,  removed  by  manufacturer  without 
proper  stamp 

Playing  cards,  to  prescribe  and  make  imperative  on  manu- 
facturers method  of  affixing  and  canceling  stamps  on 

Playing  cards,  to  prescribe  regulations  for  removal  of,  from 
place  of  manufacture  for  export 

Prepare  stamps  for  opium 

Prepare  stamps  for  playing  cards 

Procure  special-tax  stamps 

Procure  stamps  for  compound  liquors,  imitation  wines,  etc. . 

To  direct  proceedings  in  chancery  to  enforce  lien  on  real 
estate 

To  have  charge  of,  and  sell  real  estate  acquired  under  in- 
ternal-revenue laws 

To  make  detailed  statement  to  Congress  of  expenditures  for 
detecting  and  punishing  violators  of  revenue  law 

To  make  detailed  statement  to  Congress  of  miscellaneous 
expenditures 

To  pay  for  detecting  and  punishing  violations  of  revenue 
law 

To  make  monthly  reports  to  Secretary  of  condition  of  public 

business (act  Mar.  15,  1898) 

Oleomargarine  and  butter — 

To  decide  what  substances  are  taxable  as  oleomargarine 

To  decide  whether  substances  made  in  imitation  of  butter 
are  injurious  to  health (Act  Aug.  2,  1886) 

Prescribe  manner  in  which  oleomargarine  shall  be  branded. . 
Commissioner  of  Internal  Revenue,  to  make  regulations 
relative  to — 
Cigars  and  Tobacco — 

Destruction  of  tobacco,  snuff,  and  cigars 

Drawback  on  tobacco,  snuff,  and  cigars 

Exportation  of  tobacco,  etc 3385  [3385a] 

Imported  scraps,  cuttings,  etc 

Inspection  of  cigars,  etc.,  and  collecting  tax 

Leaf-tobacco  dealers'  books 

Packing  tobacco,  snuff,  and  cigars  in  wood,  metal,  paper,  etc. 

Prescribing  packages  for  leaf  tobacco  as  manufactured  to- 
bacco when  retailed  by  manufacturers 69  257 


47 

347 

39 

343 

43 

39 

39 

3238 

3328 

346 
291 
343 
128 
217 

3207 

105 

3208 

106 

[3463a] 

366 

[3463a] 

366 

3463 

365 

7 

55 

14 

298 

14 
6 

298 
294 

3369 
3386 
[3385a] 
3377 
3396 
3360 
3362 

267 
276 
273,  276 
271 
285 
261 
263 

456  INDEX. 

Commissioner  of  Internal  Revenue,  to  make  regulations         Section.  Page. 

relative  to— Continued. 
Cigars  and  tobacco — Continued. 

Relative  to  retail  dealers  in  leaf  tobacco 

Sale  of  refuse  scraps  and  sweepings 

Stamps  for  tobacco,  snuff,  and  cigars  sold  under  distraint. . 
Distilled  spirits — 

Affixing,  canceling  and  varnishing  stamps  on  spirits .... 

Allowance  for  leakage [33306,  34336] 

Bottling  spirits  in  bond (act  Mar.  3,  1897) 

Carrying  into  effect  act  relative  to  fruit  brandy. 

Collection  of  tax  on  bay  rum,  etc.,  from  Porto  Rico 

Denatured  alcohol 1,  2,  3, 4 

Depositing  fruit  brandy  in  warehouse 

Entering  spirits  for  deposit  in  warehouse 

Fortification  of  pure  sweet  wine 

Gauger's  returns 

Gauging  and  marking  spirits 

Gauging,  marking,  and  branding  fruit  brandy 

Restamping  spirits  when  stamps  have  been  lost  or  destroyed. 

Special  bonded  warehouses  for  fruit  brandy.  .  ._ 

Stamping  and  branding  packages  filled  on  premises  of  whole- 
sale liquor  dealer 

Stamping  and  branding  rectified  spirits 

Stamping  and  branding  wholesale  liquor  dealers'  packages.. 

Stamping  imported  liquors 

Stamps  for  spirits  sold  on  distraint 

Suspensions  caused  by  unavoidable  accident 

Use  of  distillery  warehouses  by  successors [3271a] 

Use  of  wine  spirits  free  of  tax  by  grape-brandy  distillers  in 
preparing  pure  sweet  wine,  and  may  allow  distiller  credit 
for  wine  spirits  thus  used 

Withdrawal  of  spirits  by  manufacturers 

Withdrawal  of  wine  spirits  from  special  bonded  warehouse. . 
Fermented  liquors — 

Manner  of  canceling  brewers' permits 3345  251 

Manner  of  disposing  of  and  accounting  for  stamps  canceled 
for  tax  on  beer  removed  through  pipe  or  conduit  for  bot- 
tling  - ■ 

Purchasing  fermented  liquors  by  one  brewer  from  another. . . 

Removal  of  f ermented  liquors  for  storage  without  stamps 

Sale  of  unfermented  worts 

Transfer  of  business  in  case  of  accident  to  brewery 

Miscellaneous — 

Any  alteration  of  law 

Carrying  into  effect  the  provisions  relating  to  the  manufac- 
ture and  sale  of  mixed  flour 

District  attorneys  and  marshals 

Drawback  on  stills  exported 

Fees  in  cases  of  distraint 

Filled  cheese 

Governing  manufacturers  of  smoking  opium 

List  of  special  taxpayers  in  collector's  office 

Manner  of  affixing  and  canceling  stamps 3322,  3328, 3369,  3446 

Providing  mode  or  time  of  assessing  or  collecting  taxes 

Registry  of  deaths  and  removal  of  persons  who  have  paid 

special  tax 

Sale  of  property  purchased  by  United  States  under  distraint. 

Returns  of  persons  liable  to  tax 

Special-tax  stamps 

Use  of  special-tax  stamps  on  railroad  trains  and  steamboats. . 

Vinegar  factories (act  June  14,  1879) 

Oleomargarine  and  adulterated  butter — 

Books  and  returns  of  wholesale  dealers  in  oleomargarine, 

adulterated  butter,  or  renovated  butter 

Carrying  oleomargarine  law  into  effect - 


35 

261 

3362 

263 

3369 

267 

3322 

214 

34336] 

223, 336 

2 

236 

10 

195 

32516 

152 

,  2,  3,  4 

239, 240 

1 

192 

3293 

182 

45 

230 

3291 

181 

3249 

149 

2 

192 

3315 

209 

1 

192 

3323 

214 

3320 

213 

3323 

214 

11 

227 

3334 

226 

3310 

206 

[3271a] 

169 

42 

228 

[3433a] 

336 

45 

230 

3354 

254 

3349 

253 

3345 

251 

3351 

253 

3350 

253 

3447 

356 

47,49 

313, 314 

3215 

111 

10 

134 

3206 

105 

18 

308 

39 

291 

3240 

129 

, 3369, 3446 

214,  217 

267,  355 

3447 

355 

3241 

130 

3192 

99 

3173 

86 

3238 

128 

[3233a] 

126 

177 

6 

304 

20 

300 

index.  457 

Commissioner  of  Internal  Revenue,  to  make  regulations  Section.  Page. 
relative  to — Continued. 
Oleomargarine  and  adulterated  butter — Continued. 

Exportation  of  oleomargarine 16  298 

Manufacturer's  records,  marking,  etc.,  of  adulterated  butter 

or  renovated  butter (act  May  9,  1902)  4  300 

Commissions — 

Internal-revenue  officer  to  make  statement  of 3158  74 

Of  collectors 3147,3148,3314  63,208 

Of  delinquents  accountable  for  public  money 3624  407 

Company — 

Word  as  used  in  reference  to  corporations,  notes If  5  3140  58 

Compensation — 

Chemist 49 

Clerks 49 

Collectors [3148]  63 

Commissioner 319  45 

Deputy  collectors [3148]  3150  63,  67 

Deputy  collectors  acting  as  collector 3150  67 

Deputy  commissioner 322  48 

Gaugers 3157  73 

Gaugers  at  wineries 3  233 

Heads  of  division 49 

No  additional,  to  collectors  acting  as  disbursing  agents 3144  62 

None  for  office  not  authorized 1760  433 

None  to  officers  performing  duties  of  other  officers 1764  435 

Not  available  for  persons  incapacitated  .  (act  June  17,  1910)  3  54 

No  perquisites  allowed [1765a]  435 

None  for  extra  services 1765  435 

None  to  certain  officers  until  they  take  special  oath 1790  437 

None  to  collectors  failing  to  report 3147  63 

None  to  collectors,  unless  confirmed  by  Senate,  except  in 

certain  cases 13  65 

None  to  persons  in  arrears  to  United  States 1766  424 

Not  to  be  paid  for  two  offices,  when,  etc 1763  434 

Revenue  agents 3152  67 

Solicitor. 349  48 

Storekeepers 3153  69 

Superintendent  of  exports 3161  75 

Competency — 

Of  witness  to  be  determined  by  State  laws 858  389 

Compound  liquors — 

Manufacture  of  is  rectification 3244  134 

Tax  on 3328  217 

Compromise — 

By  district  attorney  or  marshal,  penalty 3169  81 

By  internal -revenue  officer,  except  as  authorized,  penalty . .  3169  81 
Commissioner  of  Internal  Revenue  may  make,  in  certain 

cases 3229  123 

Of  claims  and  cases  after  judgment 3469  399 

Comptroller  of  Treasury — 

Commissioner  to  certify  to,  as  to  due  diligence  of  collectors . .  3218  113 

Successor  of  First  Comptroller notes,  3217  112 

To  institute  suits  against  collectors '  3624  407 

To  report  to  Solicitor  of  Treasury  delinquencies  of  collectors 

in  rendering  accounts 3217  112 

Consent — 

Of  mortgagee,  owner,  judgment  creditor,  etc.,  to  be  filed  in 

certain  cases 3262  162 

Of  surviving  principal  and  sureties  interested,  under  certain 

conditions [3271a]  169 

Consolidation — 

Of  two  or  more  charges  in  one  indictment 1024  388 

Conspiracy — 

Of  revenue  officers,  etc. ,  to  defraud 3169  81 

To  defraud  United  States 3169,  5440        81,  418 

To  prevent  persons  from  accepting  office 5518  417 


Section. 

Page. 

3269 

167 

7 

52 

3457 

362 

3231 

124 

318 

458  INDEX. 

Construction  of- — 

Distillery 

Contagious  diseases — 

In  immediate  family  of  employee (act  Mar.  15,  1898) 

Containers — 

Forfeited  when  contents  forfeited 

Continuance — 

Of  suits  lawful,  when 

Contingent  interests  not  vested — 

Refund  of  legacy  tax  on (act  July  1,  1902) . 

Contracts — 

Not  to  involve  the  Government  in  payment  of  any  money 

not  already  appropriated 3679  426 

•  Payments  on,  not  to  exceed  value  of  services  rendered  or 

articles  delivered 3648  428 

Unauthorized,  prohibited 3732  427 

Contributions — 

For  political  purposes 6  438 

Conversion — 

Of  public  money 5496  410 

Copartnership — 

One  special  tax  for  any  number  of  persons  doing  business  in.  3234  126 

Copies.     (See  Certified  copies.) 

Of  surety  company's  charter  to  be  filed  with  Secretary 3  369 

Corporations — 

Included  in  word  ' '  persons  " 3140  58 

Special  excise  tax  on (act  of  Aug.  5,  1909)  38  320 

Assessments — 

Notification  of,  on  or  before  June  1 if  5 325 

Payable  on  or  before  June  30 if  5 325 

Assessment  on  insurance  companies — 

Guaranty  or  reserve  funds,  how  treated if  2 322 

Appropriations  for  expenses (act  June  17,  1910) 327 

Certain  associations  exempt — 

Agricultural If  1 320 

Building  and  loan  associations if  1 320 

Fraternal  beneficiary  societies ."If  1 320 

Labor  organizations if  1 320 

Religious,  charitable,  or  educational if  1 320 

Collector — 

May  allow  further  time  to  make  return if  5 325 

To  transmit  returns  to  commissioner If  3 324 

Commissioner  may — 

Add  50  per  cent  to  tax if  5 325 

Amend  return If  4 325 

Direct  examfnation  of  books If  4 324 

Employ  agents,  clerks,  etc (act  June  25,  1910) 328 

Invoke  aid  of  court if  4 325 

Make  assessments If  5 325 

Make  return. . If  4 325 

Require  further  information if  4 324 

Date — 

Act  to  take  effect if  3 322 

Of  assessment  of  tax if  5 325 

Of  payment  of  tax if  5 325 

Foreign — 

Deductions  in  case  of. f  2,  3 321,  322 

General  laws  made  applicable If  8 326 

Information  not  to  be  divulged if  7 326 

Interest — 

Allowed  as  deduction if  2 321 

On  unpaid  tax if  5 326 

Jurisdiction — 

Summons  to  appear  and  produce  books. . . : if  8 326 

Net  income — 

Deductions  from  gross  income  allowed if  2,  3 321-2 

Depreciation if  2 321 


INDEX.  459 

Corporations— Continued.                                                                          Section.  Page. 
Special  excise  tax  on — Continued. 
Net  income — Continued. 

Dividends  upon  stock  of  other  corporations 12 321 

How  ascertained %  2 321 

Interest  on  bonded  indebtedness if  2 321 

Losses  not  compensated  by  insurance If  2 321 

Necessary  expenses If  2 321 

Taxes,  State  or  Federal If  2 321 

Officers— 

Not  to  divulge  information 17 326 

Penalties — 

Divulging  information 1  7 326 

Fifty  per  cent 1  5 325 

Five  per  cent 15 325 

Making  false  or  fraudulent  return 18 326 

Neglect  or  refusal  to  make  return 18 326 

One  hundred  per  cent f  5 325 

President — 

To  approve  regulations (Act  June  17,  1910) 328 

Give  orders  governing  publicity  of  returns  (Act  June  17, 

1910) ....'. 328 

May  give  special  direction If  7 326 

Proceedings — 

To  have  approval  of  Secretary-  of  Treasurv 14 325 

Publicity  of  returns (Act  June  17,  1910) 328 

Regulations — 

As  to  inspection  of  return (Act  June  17,  1910) 328 

To  be  prescribed  relative  to  returns If  3 323 

Rent,  of  quarters (Act  June  17,  1910) 328 

Returns — 

Commissioner  to  make,  in  certain  cases 14 324 

Disposition  of If  6 326 

Inspection  of (Act  June  17,  1910) 328 

Publicity  of (Act  June  17,  1910)  1  6 328,  326 

To  be  filed  with  commissioner 16 326 

To  be  made  for  business  of  calendar  year *T  3 322 

To  be  made  on  or  before  Mar.  1 13 322 

To  be  made  to  collector f  3 323 

To  be  on  form  prescribed 13 323 

To  be  verified  by  principal  officer  and  treasurer. ...  1  3 322 

To  which  collector  made 13 323 

What  ehall  contain *i  3 323 

When  false  or  fraudulent *t  5 325 

When  incorrect f4 324 

Revenue  agent — 

Powers  of 14 324 

To  examine  books 14 324 

Tax  on 11 320 

Words  "company."  "association,"  when  used  with  refer- 
ence to,  embrace  successors  and  assigns 5  58 

Costs — 

No  abatement  on  account  of 3210  107 

Of  levy  under  distraint  to  be  included 3188  98 

Of  seizure  before  sale 3193  100 

Recovered  in  suits  to  be  paid  to  collectors 3216  111 

United  States  not  subject  to,  in  suits  brought  upon  infor- 
mation of  others  than  collector,  etc 969,  3214      392,  111 

United  States  to  pay,  when 1001,  3220      397, 114 

When  paid  by  defendant 974  392 

Counsel — 

Employment  of 189,  364  400 

Counterfeiting — 

Bid,  proposal,  guaranty,  official  bond,  public  record,  etc., 

for  purpose  of  defrauding  United  States 5418,  5479  420 

Imitation  wine  or  compound  liquor  stamps 3328  217 

Obligations  of  United  States,  including  stamps 5413,  5414  420 

Stamps,  etc.,  for  fermented  liquors 3346  252 


460  INDEX. 

Counterfeiting — Continued.  Section.  Page. 

Stamps  for  spirits  bottled  in  bond 7  238 

Stamps  for  distilled  spirits 3328  217 

County — 

Includes  parish 2  58 

Credits.     (See  Set  Off.) 

Crimes  and  offenses.     (See  Penalties.) 

Currants — 

Grown  in  the  United  States,  wine  made  from 3328  217 

Custody — 

Of  goods  subject  to  tax  for  fraudulent  sale  thereof 3452  359 

D. 

Dealers  in  leaf  tobacco — 

Books 3360  261 

Definition 260 

Render  statement  of  sales 3359, 3391      261-281 

To  sell  only  to  certain  specified  classes  of  persons 3244  260 

Dealers  in  liquors.     (See  Wholesale  and  retail.) 
Death — 

Of  person  having  paid  special  tax 3241  130 

Deb^ 

Contracted  through  sale  of  articles  with  intent  to  evade 

tax  void 3454  360 

Due  United  States,  to  be  withheld  in  paying  judgments 
or  allowed  claims (act  of  Mar.  3,  1875) 424 

Due  the  United  States  to  have  priority 3466  425 

Deductions — 

Of  commissions  from  delinquents  accountable  for  public 

money 3624  407 

Deed— 

Of  real  estate  sold  for  taxes 3198,  3199      103, 104 

Subject  to  tax  not  properly  stamped   when  issued,  how 
validated 

Unstamped  not  to  be  recorded 

Unstamped  not  valid  as  evidence 

Definition  of — 

Adulterated  butter (act  May  9,  1902) . 

Brewers H  1 

Cheese (act  June  6,  1896) 

Cigar  maker 

Cigars  and  cigarettes 

Dealer  in  leaf  tobacco 

Distilled  spirits 

Distiller 

Fermented  liquors 

Filled  cheese (act  June  6,  1896) 

Manufactured  tobacco 

Manufacturer  of  cigars 

Manufacturer  of  tobacco 

Manufacturer     of     adulterated,     process,     or     renovated 
butter (act  May  9,  1902) 

Manufacturer  of  filled  cheese (act  June  6,  1896) 

Manufacturer  of  oleomargarine (act  May  9,  1902) 

Manufacturer  of  stills 1j  2 

Mixed  flour (act  June  13,  1898). 

Oleomargarine (act  May  9,  1902) 

Peddler  of  tobacco 

Proof  spirits 

Pure  sweet  wine 

Rectifiers If  3 

Retail  dealers  in — 

Adulterated  butter (act  May  9,  1902) 

Distilled  spirits U  4 

Fermented  liquors if  5 

Filled  cheese (act  June  6,  1896) 


13, 3422 

338, 329 

15 

340 

14 

340 

300 

3244 

133 

1 

305 

3244 

278 

3394 

282 

3244 

278 

3248 

149 

3247 

149 

3339 

246 

2 

305 

69 

256 

3244 

278 

69 

256 

1       4 

143 

3 

144 

3 

141 

3244 

133 

310 

2 

293 

3244 

271 

3249 

149 

43 

229 

3244 

134 

4 

143 

3244, 3248 

136, 149 

3244 

139 

3 

144 

INDEX. 


461 


Definition  of — Continued. 
Retail  dealers  in — Continued. 

Leaf  tobacco 

Liquors fl  4 

Oleomargarine (act  Aug.  2,  1886) 

Wholesale  dealers  in — 

Adulterated  butter (act  May  9,  1903) 

Distilled  spirits ^  4 

Fermented  liquors ^[5 

Filled  cheese (act  June  6,  1896) 

Liquors fl  4 

Oleomargarine (act  Aug.  2,  1886) 

Wine  spirits 

Definitions — 

Of  words  as  used  in  Revised  Statutes 

Of  word  ' '  Persons  " 

Of  word  "State  " 

Of  words ' '  Obligation  or  other  security  of  the  United  States  " 
Demand  notice— 

For  taxes 3184,  3185 

Denatured  alcohol (act  June  7,  1906) 

Amendment  to  the  law (act  Mar.  2,  1907) 

Bonds  required 

Books  to  be  kept 

Central  denaturing  bonded  warehouses 

Cisterns  or  tanks  may  be  used 

Denaturing  materials 

Exemptions  allowed  in  case  of  small  distilleries 

Forfeiture 

Not  to  be  recovered  for  beverage  purposes 

Not  to  be  used  in  manufacture  of  liquid  medicinal  prepara- 
tions  

Penalties  for  violation 

Regulations  to  be  prescribed 

Rum  may  be  withdrawn  for  denaturation 

Special  warehouses 

Tank  cars  may  be  used  for  transportation  of 

Time  act  took  effect 

Transportation  from  bonded  warehouses 

Use  of  recovered  spirits  allowed  when  redenatured 

Uses  for  which  alcohol  may  be  denatured 

Use  of,  in  manufacture  of  ether,  etc 

Withdrawal  from  bond  tax  free 

Denomination  of — 

Packages  of  tobacco  and  snuff 

Stamps  for  cigars  and  cigarettes 

D  epositories — 

To  be  designated  by  the  Secretary  for  the  safe-keeping  of 

money 32H,  3620 

Deposits — 

Of  gross  amounts  collected  to  be  made  daily  fact  May  27, 

1908). 

Of  spirits  in  warehouse 

Deputy  collectors — 

Authority  of 

Bond  of,  available  to  legal  representatives  and  sureties  of 

collector 

Collector  authorized  to  appoint 

Collector  responsible  for 


Section. 

Page. 

3244 

260 

3244 

136 

I        3 

142 

4 

143 

3244 

136 

3244 

140 

3 

144 

3244 

136 

3 

142 

43 

229 

1-5 

58 

3140 

58 

3140 

58 

147 

420 

3184, 3185 

95,96 

239 

240 

1 

1 

239, 241 

1 

239 

2 

241 

3 

241 

1 

239 

4 

241 

2 

240 

2 

240 

2 

240 

2 

240 

1 

239 

1 

241 

1 

239 

3 

241 

5 

242 

3 

241 

2 

240 

1 

239 

1 

241 

1 

239 

3362 

263 

3394 

282 

Compensation,  bonds,  etc 3148  [3149] 

Compensation  of,  while  acting  as  collector  during  vacancy. . 

Detailed  for  special  duty  in  other  districts,  how  paid 

Duties  of,  relating  to  returns 

Duty  of,  with  respect  to  taxable  property  of  nonresident. . . 

May  administer  oaths 

May  be  designated  by  collector  to  make  survey  of  distillery. 


108,  405 


3210 

107 

3293 

181 

3148 

64 

3149 

66 

[3148] 

63 

[3148] 

64 

[3149] 

63,66 

3150 

67 

3149a 

66 

3173 

86 

3180 

92 

3165 

78 

3264 

164 

462  INDEX. 

Deputy  collectors— Continued.  Section.  Page. 

May  be  authorized  to  levy  distraint 3188  98 

May  enter  building  where  articles  subject  to  tax  are  kept. .             3177  90 

Not  officers  within  meaning  of  section  1765 notes,  1765  435 

Not  to  disclose  operations,  style  or  apparatus  of   manufac- 
turers              3167  79 

To  be  stationed  in  Porto  Rico (act  June  29,  1906) 375 

To  canvass  district 3172  86 

To  give  receipts  for  all  sums  collected,  except  in  case  of 

stamps 3183  94 

To  return  statement  of  sales  of  land  to  collector 3203  104 

To  serve  summons 3174  88 

To  transmit  notice  of  distiller  or  rectifier  to  collector 3259  158 

When  to  act  as  collector 3149  66 

When  to  make  returns 3176  89 

Deputy  commissioner  of  internal  revenue — 

Appointment  of 322  48 

Duties  of,  salary,  etc 323  48 

Deputy  marshals — 

Not  officers  within  meaning  of  section  1765 notes,  1765  435 

Destruction  of — 

Empty  cigar  boxes  with  stamps  thereon 3406  289 

Empty  oleomargarine  packages 13  297 

Internal-revenue  locks  and  seals 3268  167 

Property,  to  prevent  seizure 65  415 

Public  records 5403,  5408  418 

Spirits 358 

Spirits  by  accident (sec.  5,  act  June  7,  1906),  3221       234, 117 

Spirits  in  process  of  manufacture [3309a]  204 

Stills . 3332  224 

Tobacco,    snuff,    and   cigars   abandoned,    condemned,    or 

forfeited 3369  267 

Useless  papers 430 

Detection — 

Of  persons  violating   the   internal-revenue  laws,  commis- 
sioner may  pay  for 3463  365 

Detention — 

Of  spirits  on  suspicion  48  hours 3298  198 

Disability — 

Of  collector 3149  66 

Disbursing  agents — 

Bonds  of 3144  62 

Collectors  to  act  as 3144  62 

Disbursing  officers — 

Duties  of 3620,  3621,  3622,  3623,  3643     404,  405, 

407,  409 

Disclosure — 

Of  official  information 3167  79 

Discontinuance — 

Of  prosecution  under  section  3257  not  allowed  except  under 

certain  conditions 3230  124 

Between  distillery  and  rectifying  establishment.  3244,  3259,  3266,  3280       135, 158, 

166, 173 

Between  vinegar  factory  and  distillery  or  rectifying  house. .            3282  176 
Distilled  spirits— 

Abateiix'ni  or  refunding  of  tax  on,  destroyed  by  accidental 

fire,  etc 5,  3221,  3223,  [3309a]     233,117, 

119, 204 

Accountability  of  collectors  for  stamps  for 3314  208 

Affixing  and  cancellation  of  stamps  for 3322  214 

Allowance  for  leakage [3294a,  33306,  34336]  185, 

223,  336 

Allowance  for  loss  in  warehouse  by  fire 3221  117 

Allowance  for  stamps  spoiled 3426  331 

Assessment  for  deficiencies  in  production 3309,  [3309a]      202,  204 


INDEX  463 

Distilled  spirits— Continued.  Section.  Page. 

Assessment  of  tax  on,  removed  without  deposit  in  warehouse  3253  155 

Burden  of  proof  in  case  of  seizure  of 3333  225 

Capacity  of  casks 3287  178 

Capacity  tax,  80  per  cent 3309  203 

Definition  of 3248  149 

Detention  of,  for  48  hours,  on  suspicion 3298  198 

Disposition  of  forfeited  spirits 3450  357 

Drawing  off,  gauging,  marking  of  casks,  and  removal  of,  to 

warehouse - 3287  178 

Drawn  into  wholesale  liquor  dealers'  packages  containing 

5  gallons  or  more,  to  be  marked  and  branded 3323  214 

Entry  for  deposit  of,  in  distillery  warehouse 3293  181 

Entry  for  withdrawal  of 3294  185 

Five-gallon  packages  require  stamps 3289,  3320      180,  213 

Fractional  gallons,  how  taxed 3251  150 

Gallon  of,  as  used  in  sales . 3250  150 

Gauging  and  stamping  of  rectified 3320  213 

General  bonded  warehouses  provided  for.  (act  Aug.  28, 1894). . .  189 

In  any  cask  or  package  containing  more  than  5  gallons,  to 

be  stamped 

Inspection  of,  etc 

Insurance  on  spirits  lost  or  destroyed .' . .  3223,  [33306] 

Manufacture   of,    not  allowed   in    bonded   manufacturing 

warehouse (act  Aug.  5,  1909) 

May  be  withdrawn  from  warehouse  without  payment  of 

tax  for  exportation 

May  be  withdrawn  without  payment  of  tax  for  use  in  bonded 

manufacturing  warehouse 

Not  to  be  purchased  in  quantities  greater  than  20  gallons 

by  rectifier  or  liquor  dealer,  except,  etc 

Not  to  be  removed  at  other  time  than  between  sunrise  and 

sunset 

Not  to  remain  on  distillery  premises  after  tax  paid 

Officers  interested  in  the  production  of,  etc.,  of 

Products  of  distillation  containing,  to  be  taxed  as 

Production  of,  when  deemed  to  have  commenced 

Restamping  of,  in  certain  cases 

Sold  by  order  of  court,  etc.,  subject  to  tax 

Special  bonded  warehouses  provided  for.  .(act  Mar.  3, 1877) 

Stamps  and  brands  to  be  effaced  from  empty  casks 3324  215 

Stamps  for 3312,  3313  207 

Stamps  for  rectified 3320  213 

Stamps  lost  or  destroyed  by  accident 3315  209 

Stamps  on,  when  sold  under  distraint 3191,  3458        99,  362 

Tax  lien  on  distillery  premises,  etc 3251  150 

Tax  on 3251  150 

Tax  on,  to  be  paid  before  removal  from  warehouse 3271  168 

Tax  on,  when  used  in  the  fortification  of  sweet  wines 3  233 

Tax-paid  stamps  to  be  placed  on,  before  removal  from  ware- 
house    3295  196 

To  bedrawn  from  receiving  cisterns  within  what  time,  etc.  3267  167 

Used  in  manufacturing  vinegar 3282  176 

Warehouse  stamps  to  be  placed  on  by  gauger 3287  178 

What  shall  be  proof 3249  149 

When  tax  attaches  to i 3248  149 

Withdrawal,  iree  of  tax,  to  be  used  in  the  manufacture  of 

sugar  from  sorghum [3251c]  154 

Withdrawal  of,  from  bond,  for  scientific  purposes 3297  197 

Withdrawn  iree  of  tax  for  use  of  United  States  may  be  trans- 
ferred bj*  use  of  pipes  direct  from  cisterns  to  storage  tanks, 

and  thence  to  tank  cars 3287  179 

Forfeitures  for  violation  of  law  relating  to — 

Absence  of  stamps  on  imitation  wines 3328  217 

Carrying  on  the  business,  etc.,  after  notice  of  suspension. . .  3310  206 


_ 

3289 

180 

3249 

149 

223,  [33306] 

119,223 

23 

333 

3330 

220 

3433a 

336 

3319 

213 

3327 

216 

3288 

180 

3168 

80 

3254 

155 

3310 

205 

3315 

209 

3334 

226 

192 

464 


INDEX. 


Distilled  spirits — Continued. 

Forfeitures  for  violation  of  law  relating  to — Continued. 

Carrying  on  the  business  of  a  distiller  without  having  given 
bond,  or  with  intent  to  defraud;  permitting  any  building, 
etc.,  to  be  used  for  egress  or  ingress  to  fraudulent  distillery. 

Casks  and  packages  of  adulterated  spirits 

Distiller  defrauding  or  attempting  to  defraud  United  States 
of  tax  on  spirits 

Distiller  making  false  entries,  omitting  to  keep  or  produce 
books 

Empty  casks  with  imported  stamps,  etc.,  thereon 

Failing  to  give  bond 

Forfeiture  of  fruit  brandy  found  elsewhere  than  in  a  distil- 
lery or  bonded  warehouse  not  having  been  removed 
therefrom  according  to  law,  or  where  tax  has  not  been 
paid  within  three  years (act  Mar.  3,  1877) 

Fraudulently  claiming  drawback  on  distilled  spirits 

Imitation  stamps  on  packages  of  spirits 

Not  effacing  stamps,  marks,  and  brands  at  the  time  of  empty- 
ing casks 

Omitting  things  required,  or  doing  things  forbidden  where 
there  is  no  specific  penalty  or  punishment  elsewhere 
imposed 

Package  of  imported  liquor  not  stamped  .  .(act  Mar.  1,  1879) 

Packages  of  spirits  without  marks  and  stamps  required  by 
law 

Railroad  or  transportation  company  transporting,  etc., 
empty  stamped  casks 

Receiving,  carrying,  or  delivering  spirits  to  or  from  distil- 
lery, rectifying  establishment,  or  wholesale  liquor  dealers' 
store  having  no  sign  or  delivering  grain  or' other  raw 
material 

Rectifiers  and  wholesale  liquor  dealers  failing  to  mark  and 
brand  packages  of  spirits 

Relanding  within  the  jurisdiction  of  the  United  States 
spirits  shipped  for  exportation 

Removing  or  concealing  articles  with  intent  to  defraud  the 
United  States  of  taxes 

Setting  up  still,  boiler,  etc.,  without  obtaining  permit  or 
failing  to  give  notice  before  removal  from  place  of  manu- 
facture   

Shipping  liquors  or  wines  under  other  than  name  known  to 
the  trade 

Spirits  found  elsewhere  than  in  a  distillery  or  distillery 
warehouse  not  having  been  removed  therefrom  accord- 
ing to  law 

Spirits  removed  after  sunset  and  before  sunrise  with  horse, 
cart,  boat,  or  conveyance  used 

Still  set  up,  not  registered 

Tax-paid  spirits  remaining  on  distillery  premises 

Vinegar  containing  more  than  2  per  cent  of  proof  spirits 

Penalties  for  violations  of  law  relating  to — 

Adding  substances  to,  to  create  fictitious  proof 

Affixing  imitation  stamps 

Altering  stamp,  marks  or  brands,  shifting  spirits,  etc 

Breaking  locks  or  unlawfully  gaining  access  to  cistern  room 
or  building  of  distillery 

Breaking  or  tampering  with  locks,  seals,  or  fastenings 

Buying  or  selling  casks  with  inspection  marks  remaining 

Carrying  on  business  after  giving  notice  of  suspension  {see 
also  Forfeitures) 

Carrying  on  business  of  rectifier,  dealer,  etc.,  in  liquors, 
manufacturer  of  stills,  without  payment  of  special  tax 

Carrying  on  business  of  distiller  without  giving  bond  or 
with  intent  to  defraud  (see  also  Forfeitures) 

Collector  approving  bond  of  distiller  before  law  and  regu- 
lations are  complied  with 


Section. 


Page. 


3281 
3252 

173 

154 

3257 

156 

3305 

12,13 

3260 

201 

227, 228 
159 

9 

3330 

[3316a] 

194 
220 
209 

3324 


3299 


215 


3456 
11 

361 
227 

3289 

180 

3324 

215 

3279 

172 

3323 

214 

3330 

221 

3450 

357 

3265 

165 

3449 

356 

198 


3327 
3258 
3288 
3282 

216 
157 
180 
176 

3252 

[3316a] 

3326 

154 

209 
216 

3268 
3311 
3325 

167 
206 
216 

3310 

206 

[3242a] 

131 

3281 

173 

3261 

162 

INDEX.  465 

Distilled  spirits— Continued.  Section.  Page. 

Penalties  for  violations  of  law  relating  to — Continued. 

Counterfeiting  or  fraudulently  using  stamps  for  imitation 

wines  (see  also  Forfeitures) 3328  217 

Distiller  defrauding  or  attempting  to  defraud  United  States 
of  tax  (see  also  Forfeitures) 3257  15G 

Distiller  failing  to  give  bond  (see  also  Forfeitures) 3260  159 

Distiller  failing  to  keep  distillery  accessible 3275  1 70 

Distiller  using  pipe  not  painted,  etc.,  as  required  by  law. . .  3269  167 

Distillers  and  rectifiers  refusing  or  neglecting  to  furnish 
facilities  for  examination 3277  171 

Distillers  failing  to  keep  or  produce  books  making  false 
entries  (see  also  Forfeitures) 3305  201 

Distillers,  rectifiers,  wholesale  liquor  dealers,  etc.,  omitting 
things  required  (see  also  Forfeitures) 3456  361 

Distillery,  rectifying  houses,  or  wholesale  liquor  store  with- 
out sign  required;  using  false  signs;  working  on  such  dis- 
tillery, etc , 3279  172 

Distilling  between  7  p.  m.  Saturday  and  1  a.  m.  Monday. .  3283  177 

Distilling  spirits  on  certain  prohibited  premises 3266  166 

Double  the  tax  for  evading  or  illegal  removal 3256,  3296,  3452  156, 

197, 359 

Double  the  tax  for  spirits  illegally  used  in  fortification 44  230 

Evading  tax  on  spirits 3256  156 

Failing  to  efface  and  obliterate  marks,  stamps,  and  brands 
on  casks  when  spirits  were  drawn  off;  transporting,  receiv- 
ing, etc.,  the  same  (see  also  Forfeitures) 3324  215 

Failing  to  give  notice  of  intention  to  carry  on  business  by 
distiller  or  rectifier 3259  158 

Failing  to  obliterate  stamp  on  emptying  packages  of  im- 
ported spirits  (see  also  Forfeitures) 12  227 

Failure  of  rectifiers  and  wholesale  liquor  dealers  to  make 

transcripts  from  proper  books 3318  211 

For  illegal  recovery  of  spirits  used  in  fortification 6  234 

For  unlawful  use  in  fortification 48  232 

Fraudulently  claiming  allowance  on  drawback  (see  also 
Forfeitures) 3330  220 

Gaugers  unlawfully  employing  distillers  and  others  to  use 

their  brands  or  perform  any  of  their  duties 3290  181 

Making  fraudulent  inspection,  gauging,  etc 3292  181 

Not  admitting  officer,  hindering,  obstructing  officer  in  enter- 
ing or  examining  distillery 3276  171 

Officers  affixing,  cancelling,  or  issuing  stamps,  except  as 
provided  by  law 3316  209 

Purchasing  or  selling,  using,  etc.,  emptied  casks  of  im- 
ported liquor  with  stamp  and  marks  thereon 13  228 

Purchasing  quantities  greater  than   20  gallons  from   one 

person,  etc 3319  213 

Rectifiers  and  wholesale  liquor  dealers  neglecting  to  provide 
proper  books,  making  false  entries,  or  altering  entries 
therein 3318  211 

Rectifier  carrying  on  business  with  intent  to  defraud  or 
purchasing  distilled  spirits  knowing  the  tax  has  not 
been  paid  thereon 3317  210 

Removal  of  spirits  after  sunset  and  before  sunrise  (see  also 

Forfeitures  ) 3327  216 

Removing  and   concealing 3296,  3450       197,  358 

Removing  spirits  from  warehouse  illegally 3296  197 

Removing  spirits  on  which  tax  is  not  paid  to  place  other 

than  distillery  warehouse 3296  197 

Refusing  or  neglecting  to  draw  off  water  from  or  cleanse 

worm,  tubs,  etc.,  when  required 3286  178 

Relanding  within  the  United  States  spirits  shipped  for 
exportation  (see  also  Forfeitures) 3330  221 

Setting  up  still  without  permit  (see  also  Forfeitures) 3265  165 

Shipping  spirits  under  other  than  name  known  to  the  trade 

(see  also  Forfeitures) 3449  356 

72170°— 11 30 


466  INDEX. 

Distilled  spirits — Continued.  Section.  Page. 
Penalties  for  violations  of  law  relating  to — Continued. 
Storekeepers  and  persons  in  charge  of  warehouses  allowing 

spirits  to  be  removed  without  order  of  collector 3300  199 

Using  alcohol  obtained  for  scientific  purposes  otherwise 3297  198 

Using  false  weights  and  measures  or  unregistered  materials..  3306  202 

Using  material  or  removing  spirits  in  absence  of  storekeeper.  3284  177 
Violating  the  provisions  of  law  relative  to  mash,  wort,  or 

vinegar  factories  (see  also  Forfeitures) 3282  176 

Violating  the  provisions  of  the  act  relative  to  grape  brandy 

(act  Mar.  3,  1877) 11  195 

Distiller — 

Bond  of,  not  to  be  approved  until  law,  etc.,  complied  with.  3261  162 

Books 3318a,  3303,  3304  212, 

200,  201 

Definition  of 3247  149 

Evading  tax 3256,  3257  156 

Hindering  officers  from  entering  distillery 3276  171 

Manufacturing  wooden  stills  for  own  use,  not  liable 3244  133 

May  withdraw  spirits  from  warehouse  on  application 3294  185 

Must  be  owner  in  fee  of  land  on  which  distillery  is  situated, 

or  have  written  consent,  etc 3262  162 

Mast  enter  spirits  for  deposit  in  warehouse  on  first  day  of 

each  month,  etc 3293  181 

Must  furnish  facilities  for  examination  of  distillery 3277  171 

Must  furnish  keys  to  gates  of  distillery 3275  170 

Must  give  bond 3260  159 

Must  give  bond  for  tax  on  spirits  in  warehouse 3293  182 

Must  keep  pipes  properly  painted 3269  168 

Must  pay  tax  on  80  per  cent  of  producing  capacity 3309  203 

Notice  of  intention  to  carry  on  business 3259  158 

Notice  of  intention  to  reduce  capacity 3311  206 

Notice  of  suspension  of  work  by 3310  205 

Not  liable  as  wholesale  liquor  dealer  for  sale  of  original 

packages  of  own  production 1f  4  3244  136 

Not  to  do  business  until  law  L  complied  with 3280  172 

Not    to    distill    within    600    feet    of    rectifying    establish- 
ment    3244, 3259,  3266,  3280     135, 158- 

166, 173 

Not  to  distill  within  600  feet  of  vinegar  establishment 3282  176 

Not  to  use  still,  boiler,  etc.,  for  distilling  in  certain  places..  3266  166 
Of  brandy  from  apples,  peaches,  grapes,  etc.,  may  be  ex- 
empted from  certain  provisions 3255  155 

Penalty  and  forfeiture  for  doing  things  forbidden  when  no 

specific  penalty  is  imposed  by  any  other  section 3456  361 

Resumption  of  work  by 3310  206 

Returns. 3307, 3308  202 

To  be  notified  of  proposed  assessments,  when [3309a]  205 

Whose  distillery  has  a  daily  capacity  of  30  gallons  or  less 

may  be  exempted  from  certain  provisions [3255a]  156 

Distillery — 

Assessment  of  deficiency  tax  to  be  lien  on 3309  203 

Breaking  locks  and  seals  of '. 3268  167 

Commissioner  may  order  changes  of  apparatus,  etc 3270  168 

Drawing  off  water,  cleansing  worm  tubes,  etc 3286  178 

Distilling  apparatus  set  up  to  be  registered 3258  157 

Emptying  fermenting  tubs 3285  177 

Facilities  for  examination  of,  to  be  furnished  officers 3277  171 

Furnaces,  tubs,  doublers,  worm  tanks,  and  pipes 3269       167, 168 

Height  of  walls,  keys,  etc.,  and  always  kept  accessible  to 

officers 3275  170 

How  released  before  judgment 3331  224 

Illicit [3281a]  3332       175,  224 

Mash,  wort,  and  vinegar 3282  175 

Materials  not  to  be  used  or  spirits  removed  in  absence  of 

storekeeper 3284  177 

No  distilling  Sundays,  etc 3283  177 


INDEX.  467 

Distillery— Continued.  Section.  Page. 
Not  to  be  in  dwelling  house  or  where  liquors  are  retailed, 

etc 3266  166 

Nor  within  600  feet  of  vinegar  establishment 3282  176 

Nor  within  600  feet  of  rectifying  establishment 3244, 3259,  135, 158, 

3266, 3280  166, 173 

Officer  may  break  open  doors  or  windows,  or  through  walls. .  3276  171 
Officers    may  break  up  ground,  etc.,  to  search  for  hidden 

pipes 3278  171 

Officer  may  enter  and  examine 3276  170 

Plan 3263  163 

Producing  capacity  of,  to  be  ascertained 3264  164 

Receiving  cisterns  in 3267  166 

Record  of  operations  at,  to  be  kept  by  storekeeper 3302  200 

Reduction  of  capacity  of 3311  206 

Resumption  of  work  at 3310  206 

Sign - 3279  172 

Spirits  not  to  remain  on  premises  of,  after  tax  paid 3288  180 

Storekeeper  to  have  charge  of 3273  170 

Survey 3264  164 

Suspension  of  work  at 3310  205 

Tax,  lien  on. . 3251  150 

To  be  destroyed  in  certain  cases 3332  224 

Distillery  warehouses.     (See  Warehouses.) 

Bond  for  payment  of  tax 3293  182 

Custody  of 3274  170 

Entry  for  deposit  in 3293  181 

Entry  for  withdrawal  from 3294  185 

For  storage  of  spirits  before  payment  of  tax 3271  168 

In  case  of  change  of  ownership [3271a]  169 

May  be  discontinued  by  commissioner 3272  169 

Spirits  drawn  from  receiving  cistern  to  be  directly  re- 
moved into 3267,3287  167,178 

Stamp,  form  of 3287  178 

Storekeepers  under  direction  of  collectors  to  have  charge  of.  3273  170 

To  be  in  charge  of  storekeeper 3271  168 

Transfer  of  spirits  from,  to  manufacturing  warehouse [3433a]  336 

Withdrawal  of  alcohol  from,  for  scientific  purposes 3297  [3297a]  197, 198 

Distilling  apparatus.     (See  Stills.) 

Distraint — 

Corporate  stock  sold  under 3194  100 

Disposition  of  proceeds  of  sale  under 3191,  3193-3195  99, 100 

Fees  and  charges  in  case  of 3206  105 

For  taxes,  proceedings  under 3187-3190  97-99 

Goods  to  be  restored  on  payment  of  tax 3193  100 

Proceedings  for  seizure  and  sale  of  real  estate  for  taxes. 
(See  Real  Estate.) 

Property  not  divisible,  whole  may  be  sold 3195  100 

Property  sold  under,  may  be  purchased  for  United  States. .  3192  99 

Sale  of  spirits  under 3334,  3458  226,  362 

Sale  of  tobacco,  snuff,  and  cigars  under,  stamps,  etc.,  for. .  3369,  3458  267,  362 

Successive  seizures  of  different  property  may  be  made  on. .  3205  105 

Taxes  on  property  sold  under 3191  99 

Warrant  of,  against  delinquent  collectors  and  other  public 

officers 3217, 3625  112, 408 

District  attorneys — 

Accepting  gift,  etc.,  for  settlement  of  violation  of  internal- 
revenue  laws,  penalty 3170  83 

Any  officer  or  special  attorney  of  Department  of  Justice 

may  act  as (act  June  30,  1906) 400 

Fees  and  emoluments (act  May  28,  1896)  6,7  404 

Duty  to  appear  for  officers  in  suits 771  401 

Duty  to  make  reports  to  commissioner 774,  838  401 

Duty  to  prosecute  for  fines,  etc 771, 838  401 

May  move  continuance  of  any  internal-revenue  case  for 

cause 3231  124 

Regulations  respecting,  to  be  made  by  commissioner 3215  111 


468  INDEX. 

District  attorneys— Continued.  Section.  Page. 
Report  of,  in  compromise  of  claims  and  cases  after  judg- 
ment   3469  399 

To  approve  warrants  in  internal-revenue  cases 402 

To  report  when  proceedings  should  not  be  instituted 838  401 

District  courts — 

Jurisdiction  of 3213,  563      109, 383 

Districts.     (See  Collection  districts.) 

Diligence  due — 

Bycollector 3218  113    f 

Division — 

Property  not  capable  of,  may  be  sold  as  a  whole 3195  1 00 

Dockery  bill  (see  Act  op  July  31,  1894) 406,  408 

Door — 

Of  furnace  of  still  or  boiler  used  at  distillery,  construction  of.  3269  167 

Doing  or  omitting — 

Things  prohibited  or  required,  penalty 3456  361 

Doubler.     (See  Stills.) 

Drawback — 

Appointment  of  superintendent  of 3161  75 

Collector  designated  to  have  charge  of 31 61  75 

Fraudulent  claims  for ' 3330,  [3386a],  3443  220, 

277, 353 

Of  tax  on  spirits  in  medicinal  or  toilet  preparations  exported.  25  336 

On  distilled  spirits 3329  217 

On  fruit  brandy 6  194 

On  tobacco,  snuff,  and  cigars 3386  276 

Papers  in  bureau  of,  to   be  delivered  to  collector  having 

charge  of 3161  75 

Upon  stills  manufactured  for  export 3244  133 

Under  act  of  Aug.  5,  1909 25  336 

Duties  of — 

Commissioner 321  45 

Deputy  commissioner 323  48 

Solicitor  of  Internal  Revenue 3229  123 

Chief  clerk 173, 174  49 

Dwelling  house — 

Not  to  be  used  as  distillery  or  warehouse 3266,  3271      166, 168 

E. 

Eighty  per  cent — 

Of  capacity  of  distillery 3309  202 

Embezzlement.     (See  Penalties.) 

Accepting  receipt  without  having  paid  the  full  amount 

specified  in  receipt 5496  41 1 

By  failure  of  officer  to  render  accounts 5491  410 

By  failure  of  person  having  in  possession  to  deposit  when 
required 5492  410 

By  unlawfully  receiving,  using,  or  appropriating  contrary  to 
law 5497  411 

Evidence  in  cases  of -. 5494,  5495,  887  410. 

411,413 

Custodian  who  fails  to  keep  safely  public  money 5490  410 

Officer  guilty  of,  who  pays  sum  less  than  provided  by  law 
and  requires  receipt  for  sum  greater  than  paid 5483  409 

Of  public  money,  by  disbursing  officer 5488,  5490      409, 410 

Of  public  money,  by  person  charged  with  safe-keeping 5490,  5494  410 

Stealing  money  or  other  valuable  thing  belonging  to  United 

States 47  419 

Employees — 

At  distilleries,  name  and  residence  to  be  recorded  bv  store- 
keeper  .' 3302  200 

Empty  f  distilled  spirits)  casks — 

Marks,  etc.,  must  be  obliterated 3324  215 

Penalties  for  transporting  with  stamps  unobliterated 3324  215 

Buying  or  selling  with  inspection  marks  thereon 3325  216 


Section. 

Page. 

3406 

289 

3406 

289 

3376 

270 

3276 

171 

3276 

170 

3177 

90 

3176 

89 

3293 

181 

[3293«] 

183 

3287 

178 

3294 

185 

3109 

81 

3643 

409 

INDEX.  469 

Empty  cigar  box — 

Stamps  on,  to  be  destroyed . . , 

Giving  away,  selling,  or  buying  stamped .... 

Empty  tobacco  package — 

Stamps  on,  to  be  destroyed 

Entrance — 

Breaking  open  doors  or  windows  to  effect 

Into  distillery  for  examination 

Into  place  where  articles  subject  to  tax  are  kept 

Into  premises  of  person  who  fails  to  make  return 

Entry — 

For  deposit  of  spirits  in  distillery  warehouse 

For  deposit  of  spirits  in  special  bonded  warehouse 

For  deposit  of  spirits  in  general  l>*;uded  warehouse 

For  withdrawal  of  spirits  from  distillery  warehouse 

Officer  making  a  false 

To  be  kept  by  disbursing  officer 

Envelopes — 

Official 5  429 

Estimates — ■ 

Of  expenses  of  assessing  and  collecting  by  Commissioner 
of  Internal  Revenue 321, 3671  45,  47 

To  be  furnished  Secretary  of  the  Treasury  on  or  before 

Oct.  15 (act  Mar.  3,  1901)  5  47 

Ether- 
Denatured  alcohol  may  be  used  in  manufacture  of 1  241 

Evasion — 

Of  payment  of  tax  on  spirits,  penalty 3256, 3257  156 

Evidence — 

Absence  of  stamps  from  packages  of  cigars  prima  facie 
evidence  of  nonpayment  of  tax 3398  286 

Absence  of  stamp  from  packages  of  fermented  liquor  prima 

facie  evidence  of  nonpayment  of  tax 3352  254 

Absence  of  stamp  from  packages  of  tobacco  and  snuff  prima 
facie  evidence  of  nonpayment  of  tax 

Certified  copies  of  papers  admissible  as 

Collector  may  take  in  certain  cases 

In  cases  of  embezzlement  of  public  moneys 887,  5494,  5495 

In  suits  against  persons  accountable  for  public  money 

Laws  of  State  rules  of  decision 858, 721 

Of  books,  etc.,  in  revenue  cases 

Of  conversion  by  officers  charged  with  disbursement  of 
public  money 

Unstamped  instruments  not  valid  as 

Examination — 

Of  objects  and  articles  subject  to  tax. 

Execution — 

Not  to  issue  against  collectors. 

Proceedings  on,  governed  by  State  laws 

Runs  in  every  State  and  Territory 

Executors — 

May  carry  on  business  without  additional  special  tax 

Not  liable  for  special  tax  under  certain  conditions fl  5 

When  liable  for  debts  due  the  United  States 

Exemption  from  tax — 

Small  distilleries  producing  alcohol  for  denaturation  only. .  4  241 

Exemptions  of — 

Certain  property  from  distraint. 3187  98 

Distiller  of  brandy  from  apples,  etc.,  from  certain  provi- 
sions   3255  155 

Distillers  having  a  daily  capacity  of  30  proof  gallons [3255a]  156 

For  sale  of  liquors  taken  as  security  or  as  debt fl  5  3244  140 

For  sale  of  liquors  by  executor,  administrator,  court  officer, 
or  other  fiduciary ^5  3244  140 

From  punishment  under  State  laws,  none  by  reason  of  pay- 
ment of  internal-revenue  tax 3243  132 

Of  certain  associations  from    corporation  excise  tax  (act 
Aug.  5,  1909) 38  321 


3373 

269 

882 

391 

3165 

78 

5495 

413, 

410,411 

886 

413 

1,721 

389, 392 

5 

390 

5496 

411 

14 

340 

3177 

90 

989 

398 

916 

393 

986 

393 

3241 

130 

3244 

140 

3467 

425 

470  INDEX. 

Expenditures —  Section.  Page. 

Not  to  be  made  in  excess  of  appropriations,  penalty 3679  426 

Exportation — 

Collector  to  render  monthly  account  of 3444  354 

Distilled  spirits 3330,  3329      217,  220 

Fermented  liquors (act  of  June  18,  1890) 255 

Fine-cut  shorts,  refuse  scraps,  clippings,  etc.,  of  tobacco...  3362  263 

Fruitbrandy 6  194 

Goods  manufactured  in  bonded  manufacturing  warehouse. .  23  333 

Mixedflour 44  313 

Oleomargarine 16  298 

Playing  cards 43  346 

Superintendent  of 3161  75 

Tobacco,  snuff,  and  cigars 3385  273 

Export  stamps.     (See  Stamps.) 

Exterior  boundaries  of  United  States — 

Laws  extended  to 3448  356 

Extortion — 

By  internal-revenue  officer  or  agent 3169  81 

By  receiving  money,  etc.,  under  threat  of  informing,  or  for 

not  informing 5484  417 

Extra  compensation — 

Not  to  be  allowed  unless  explicitly  stated  in  appropriation.  1763, 1765      434, 435 

F. 

Failure — 

Of  officer  to  report  fraud  or  violation  of  law 3169  81 

False — 

Bid,  proposal,  bond,  etc.,  to  defraud  United  States 5418,5479  420 

Certificate  by  internal-revenue  officer Tf  8.  3169  81 

Claims 5438  420 

Execution  of  document  required  under  internal-revenue 

laws 3451  358 

Inspection  by  gauger 3292  181 

Return  for  corporation  excise  tax If  5, 8  38      325. 326 

Return  for  special  tax 3176  89 

Statement  by  dealer  in  leaf  tobacco 33599  3391      261,  281 

Statement,  by  internal-revenue  officer,  relative  to  fees 3158  74 

Weights  or  measures  used  in  ascertaining  distillery  mate- 
rials    3306  202 

False  entry — 

By  internal-revenue  officer 3169  81 

In  books  of  distiller 3305  201 

Of  brewer 3340  248 

Of  cigar  manufacturer 3400  287 

Of  rectifier 3318  211 

Of  tobacco  manufacturer 3372  269 

Of  wholesale  liquor  dealer 3318  211 

Falsely — 

Impersonating  revenue  officer . . .  5448[5448a]  416 

Shipping    distilled    spirits,    fermented    liquors,    or   wines, 

under  other  than  name  known  to  the  trade. 3449  356 

Farmer  or  planter — 

Not  to  be  regarded  as  manufacturer  of  tobacco 69  257 

Sales  of  leaf  tobacco  by 27,35      257,261 

Fastenings  (distillery) — 

Breaking  or  tampering  with 3311  206 

Commissioner  may  require,  on  stills,  etc 3270  168 

Fees — 

In  cases  of  distraint  and  seizure 3206  101 

Of  appraisers 3460  363 

Of  clerks  of  court 402 

Ofgaugers 3157  73 

Of  officers  making  sales  of  real  estate 3197  101 

Of  United  States  commissioners 402 

Statement  of,  to  be  made  by  internal -revenue  officers 3158  74 

Of  witnesses 54 


INDEX.  471 


Felonies  defined 

Fences  (distillery) — 

Height  of 

Fermented  liquors.     (See  Brewers.) 

Absence  of  stamps  notice  that  tax  not  paid 

Account  of  materials  to  be  kept 

After  removal,  when  tax  not  paid,  may  be  seized 

Becoming  sour,  may  be  removed  without  stamps,  when. . . . 

Capacity  of  casks  for 

Certain   restrictions   respecting   mash,    wort,    etc.,    not   to 
apply  to 

Exportation  of,  without  payment  of  tax.  .(act  June  18, 1890) 

Gallon  of,  definition  of 

Laws  imposing  taxes  on,  extended  to  exterior  boundaries  of 
United  States 

Mode  of  affixing  and  canceling  stamps 

No  assessment  based  on  materials  used 

Packages  of,  to  be  branded 

Purchased  by  one  brewer  from  another  with  brand  of  pur- 
chaser  H  5  3244,  3349 

Removal  through  pipe  or  conduit  for  bottling  only 

Removal  under  bond  for  export (act  June  18,1890) 

Removal,  under  permit 

Selling,  at  retail  at  brewery 

Spigot  holes 

Stamps  for 3341,  3342 

Tax  on 

Unfermented  worts  sold  to  other  brewers 

Wholesale  and  retail  dealers  in,  to  pay  tax If  5 

Penalties  and  forfeitures  for — 

Absence  of  stamps 

Drawing  from,  package  without  stamp,  etc 

Evasion  of  tax 

Failing  to  affix  and  cancel  stamps  as  required 

Internal -revenue  officers  interested  in  production  of 

Making  false  entry 

Making  or  using  false  or  imitation  stamps 

Neglecting  to  keep  books 

Permit  not  affixed  and  canceled 

Removal  of  beer  through  pipe  line  or  conduit  without  pay- 
ment of  tax  (as  amended ) 

Removal  or  defacement  of  stamp  or  permit  by  other  than 
owner 

Removing  or  defacing  brand 

Reusing  stamps 

Selling,   removing,   etc.,   in  packages,   without  stamp,   or 
with  false  stamps,  etc 

Shipping,  under  false  name  or  brand •. 

Withdrawing,    from    unstamped    packages   or   bottling   on 
brewery  premises 

Withdrawing,  from  unstamped  packages  by  retail  dealers. . 
Fermenting  period — 

Begins  when 

In  filtration-aeration  process 

In  rum  distillery 

In  sour-mash  distillery 

In  sweet-mash  distillery 

Fermenting  tubs — 

Emptying  of,  record  to  be  kept  by  storekeeper 

Location  and  marking  of 

To  be  emptied  at  the  end  of  fermenting  period 

Fermenting  vats — 

On  premises  of  manufacturers  of  fortified  wines 

Fictitious  proof — 

Creating  of,  by  addition  of  any  substance 

Fifteen  months — 

Limitation  as  to  assessments 


Section. 

Page. 

Notes. 

388 

3275 

170 

3352 

254 

3337 

244 

3352 

254 

3347 

252 

3339 

246 

3282 

175 

255 

[3339af 

248 

3448 

356 

3342 

250 

3337a 

245 

3349 

253 

3244,  3349 

140, 253 

3354 

254 

255 

3345 

251 

3348 

252 

3342 

250 

3341, 3342 

249, 250 

3339 

246 

3351 

253 

3244 

139, 140 

3352 

254 

3344 

251 

3340 

248 

3342 

250 

3168 

80 

3340 

248 

3346 

252 

3340 

249 

3345 

251 

3354 

254 

3353 

254 

3349 

251 

3346 

252 

3343 

251 

3449 

356 

3354 

254 

3344 

251 

3310 

205 

3285 

177 

3285 

177 

3285 

177 

3285 

177 

3302 

200 

3269 

167 

3285 

177 

4 

233 

3252 

154 

3182 

92 

S(  i  lion. 

Page. 

3176 

89 

3255 

1 55 

5 

305 

15 

308 

2 

305 

3 

144 

1 

305 

16,17 

308 

11 

307 

9 

307 

3 

144 

5 

305 

6 

306 

,  13,  17 

144, 

308, 

305. 

306, 

307 

,308 

5 

305 

18 

308 

3 

144 

5 

305 

7,8 

306 

-307 

3 

144 

6 

306 

19 

308 

3264 

164 

3285 

177 

472  INDEX. 

Fifty  per  cent  additional — 

Assessment  of 

Figs- 
Brandy  made  from,  maybe  exempt  from  certain  provisions. 
Filled  cheese.     (Act  June  6.  1896.) 

Books  and  returns  of  wholesale  dealer 

Containing  ingredients  injurious  to  health 

Definition  of 

Definition  of  manufacturers,  wholesale  and  retail  dealers  . . 

Definition  of  cheese 

Forfeiture 

Imported  filled  cheese 

Laws  made  applicable 

Manufacturers,  special  tax 

Notice,  bonds,  and  inventory 

Packages  of 

Penalty 4,  5,  6,  7,  8, 12 

Record  to  be  kept  by  manufacturers  of 

Regulations 

Retail  dealers,  special  tax 

Returns  of  wholesale  dealers  in 

Sign  and  label 

Special  tax  on  manufacturers,  wholesale  and  retail  dealers. . 

Tax  on 

When  act  to  take  effect 

Filtration — Aeration  process — 

Where  used,  survey 

Time  between  filling  fermenting  tubs 

Fines.     (See  Penalties.) 
Fire — 

Accidental,  spirits  destroyed  by 3221  117 

Firms — 

Names  of  all  persons  constituting  same  to  be  registered 

Only  one  special  tax  irrespective  of  number  of  members. . . 
Fiscal  year — 

In  adjustment  of  accounts 

Five  gallons — 

Packages  of,  require  stamps 3289,  3320 

Five  per  cent  penalty — 

When  payable 

Flour — 

Manufacture  of,  at  distillery 

Mixed,  provisions  relating  to (act  June  13,  1898)     35 

Force — 

When  may  be  used  to  gain  entrance  to  distillery 

Forfeitures — 

Burden  of  proof 

For  violations  of  law  relating  to  Distilled  spirits,  Fer- 
mented liquors,  Cigars,  Tobacco,  Oleomargarine, 
Opium,  Playing  cards,  Mixed  flour,  Filled  cheese, 
Fortification  of  wine,  Adulterated  butter,  see  under 
those  heads 

Jurisdiction  of  suits  for 3213,  563,  629,  711,  732      109,  383, 

384, 385 

Money  recovered  from,  to  be  paid  to  collectors 3216  111 

Package  to  be  included  in 3457  362 

Proceedings  in  cases  of  seizures,  bonding  of  goods  seized 3458,  3459  362 

Stills  to  be  destroyed  in  certain  cases  of  forfeiture 3332  224 

Of  right  of  surety  company  to  do  business  on  failure  to  pay 
judgment 6  370 

When  property  is  perishable 3459  362 

When  value  of  "property  does  not  exceed  $500 3460  363 

Forfeitures  common  to  several  objects  of  taxation — 

Disposing  of,  or  receiving  empty  stamped  packages 3455  360 


3233 
3234 

126 
126 

3146 

63 

,  3320 

180, 213 

3185 

96 

3266 
to  49 

166 
310-314 

3276 

171 

3333 

225 

INDEX. 

Forfeitures — Continued. 

Forfeitures  common  to  several  objects  of  taxation — Continued. 

Property  found  in  possession  of  any  person  in  fraud  of  inter- 
nal-revenue laws 

Removing  or  concealing  articles  with  intent  to  defraud 

Sales  of  property  to  evade  tax  or  in  fraud  of  revenue  laws 

Foreign  corporations — 

Liable  to  special  excise  tax :    (act  Aug.  5,  1909) 

Forging — 

Bid,  bond,  affidavit,  or  other  writing 

Fortification  of  wine.     (Act  Oct.  1,  1890;  act  June  7,  1906.) 

Abatement 

Addition  of  sugar 

Addition  of  water 

Alcoholic  strength 

Assessments 

Blending  allowed 

Bonds 42, 45, 3 

Confined  to  certain  months 

Definition  of — 

Wine  spirits 

Pure  sweet  wine 

Fermenting  vats 

Forfeiture 

Gaugers  to  be  assigned 

Penalty  for  illegal  recovery 

Penalty  for  unlawful  use 

Penalty  of  double  the  tax 

Recovery  of  spirits 

Regulations 

Reimportation 

Supervision  of  material 

Tax  per  gallon  on  brandy  used 

Test  by  Ballings  saccharometer 

Use  of  wine  spirits — 

Free  of  tax 

At  vineyard 

Under  supervision  of  officers 

Withdrawal — 

From  warehouse 

For  export 

Fractional  gallons — 

Of  distilled  spirits 3251,  [3 

Frauds — 

By  removal  or  concealment  of  goods,  etc.,  with  intent 

Commissioner  may  pay  for  detection  of 

Commissioner  to  make  a  detailed  statement  of  expenditures 
for  detection  of 

In  manufacturing  cigars  on  shares 

In  manufacture  of  tobacco  and  snuff  on  share.- 

Officer  making  opportunity  for  others  to  defraud 

Fraudulent  claims — 

Before  the  departments 

For  drawback 

For  drawback  on  spirits 

For  drawback  on  tobacco 

Fraudulent  documents — 

Making  or  causing  to  be  made 3451,  5418,  5479 

Fuel- 
Purchased  for  use  in  distillery,  entry  to  be  made  of 

Furnaces  (distillery) — 

Door  of,  how  to  be  constructed 

Using  any,  which  shall  be  locked,  penalty 


473 

Section. 

Page. 

3453 

359 

3450 

357 

3454 

360 

38 

320 

28 

420 

5 

233 

43 

229 

43 

229 

42 

229 

3 

233 

6 

234 

12, 45,  3 

228, 

230,  233 

42 

229 

43 

229 

43 

229 

4 

233 

42 

229 

3 

233 

6 

234 

48 

232 

44 

230 

49 

232 

45 

230 

47 

232 

4 

233 

3 

233 

43 

229 

42 

228 

45 

231 

45 

231 

45 

231 

46 

231 

i],  3313 

150, 

151,  207 

3450 

357 

3463 

365 

[3463a] 

366 

3399 

287 

3370 

268 

3169 

81 

5438 

420 

3443 

353 

3330 

220 

[3386a] 

277 

L8,  5479 

358,  420 

3302 

200 

3269 

167 

3311 

207 

474 


INDEX. 


Fruit  pomace  residuum — 

From  wine  to  which  artificial  sweetening  has  been  added 
maybe  used  in  distillation  of  brandy. .  .(act  Mar.  2,  1911) 

G. 

Gallon — 

Of  distilled  spirits,  definition  of 

Of  distilled  spirits,  fractional,  how  taxed 3251,  [3251a],  3313 

Of  fermented  liquors,  definition  of 

Gauger  (internal  revenue) — 

Appointment,  oath,  and  bond 

Annual  leave  of 

Compensation  of (act  Feb.  24,  1911) 

May  be  detailed  for  duty  in  other  districts 

May  be  transferred  or  suspended 

Penalty  for  employing  other  persons  to  use  brands  or  dis- 
charge duties 

Penalty  for  making  false  or  fraudulent  inspection 

Receiving  cisterns  and  room  to  be  in  charge  of 

Spirits  drawn  under  his  supervision 

To  be  assigned  at  wineries 

To  be  intrusted  with  book  containing  stamps  and  other  than 
tax-paid 

To  gauge,  prove  spirits,  mark  casks,  and  place  thereon  ware- 
house stamps 

To  gauge  and  stamp  rectified  spirits 

To  make  daily  report  to  collector  of  stamps  used  other  than 
tax-paid 

To  make  daily  return 

To  receive  per  diem  compensation  when  traveling  to  assign- 
ments  

To  receive  compensation  only  when  rendering  service 

To  stamp  spirits  removed  from  warehouse 

Traveling  expenses  of 

Under  supervision  of  collector 

Gauging  instruments — 

To  be  prescribed  by  commissioner 

Gender — 

Masculine,  includes  females 

General  bonded  warehouse — 

Assessments  for  nonpayment  of  tax  and  provisions  relative 
to  excessive  loss 

Certain  provisions  of  law  relative  to  withdrawal  from  dis- 
tillery warehouse  made  applicable 

Conditions  under  which  commissioner  may  require  removal 
of  spirits  to 

Exportation  from 

May  be  established  by  commissioner (act  Aug.  28,  1894) 

Spirits  deposited  within  to  have  stamps  affixed 

Spirits  deposited  therein  to  be  bonded  on  arrival 

Spirits  for  deposit  in  to  be  so  deposited  within  10  days 

Spirits  may  be  removed  once  and  no  more  from  one  general 
bonded  warehouse  to  another 

Spirits  produced  from  material  other  than  fruit  may  be 

transferred  thereto 

Gifts— 

To  internal-revenue  officers  for  compromise,  etc.,  of  viola- 
tions of  law 

To  marshals  or  district  attorneys  for  compromise,  etc 

By  persons  in  Government  employ  to  official  superiors 

Goods — 

Purchased  for  the  Government 

Grain — 

Fifty-six  pounds  to  the  bushel  in  determining  quantity  of, 
used  at  distillery 

May  be  ground  on  distillery  premises  for  distillation 


Section. 

Page. 

3255 

155 

3250 
a],  3313 

[3339a] 

150 

150, 

151, 207 

248 

3156 
3157c? 

3157 

3154a 

[3163a] 

72 
74 
73 
72 
76 

3290 
3292 
3267 
3267 
3 

181 
181 
167 
167 
233 

3314 

208 

3287 
3320 

178 
213 

3314 
3291 

208 
181 

3154a 

31576 

3295 

3157 

3156 

71 

73 

196 

73 
72 

3249 


58 
56 


149 
58 


191 
190 


57 

190 

56 

190 

51 

189 

53 

189 

54 

189 

59 

191 

55 

190 

52 

189 

3169 

81 

3170 

83 

1784 

438 

3464 


3309 
3266 


367 


203 
166 


INDEX.  475 

Grain— Continued.  Section.  Page. 
Not  to  be  mashed  at  distillery  between  Saturday  and  Mon- 
day             3283  177 

Penalty  for  delivery  of,  at  distillery  having  no  sign 3279  172 

Quantity  of  mash  to  represent  1  bushel 3264  164 

Grape  brandy — 

Exportation  of .' 5,  6       193, 194 

Provisions  relating  to,    made  applicable  to  brandy  from 

apples  or  peaches (act  Oct.  18,  1888 ) 195 

Special  bonded  warehouses  for  (see  Special  Bonded  Ware- 
houses)  •. 1  192 

Tax  may  be  assessed  and  collected  by  distraint 8  194 

Tax  must  be  paid  within  eight  years 9  194 

Use  of,  free  of  tax,  to  fortify  pure,  sweet  wine 42  228 

Violations  of  law  relating  to 11  195 

Grapes — 

Brandy  from,  exempt  from  certain  provisions 3255  155 

Wine,  etc.,  made  from 3328  217 

Gross  amount — 

Of  all  collections  to  be  deposited  in  the  Treasury  daily 

(act  May  27,  1908)  3210  108 

Guarantee  corporation  (See  Surety  Companies.) 

May  be  sole  sureties  on  bonds,  etc (act  Aug.  13,  1894) 368 

H. 

Habeas  corpus — 

Writ  of 643  387 

Hawaii — 

Constituted  a  collection  district 87  373 

Internal-revenue  laws  made  applicable  to 5  373 

Heads  of  divisions — 

Office  of  Internal  Revenue 49 

One  may  be  designated  as  chief  clerk 320  49 

Hogs — 

Dependent  upon  distillery  for  feed,  in  case  of  seizure 3331  224 

Hogshead — 

Of  fermented  liquors,  contents  of 3339  246 

Holidays — 

Public 993  434 

Honorably  discharged  soldiers — 

Preference  for  appointment 1754  431 

Horses — 

And  other  animals  used  in  fraudulent  removal  of  articles 

subject  to  tax  liable  to  forfeiture 3450  357 

Hours  of  labor  of  employees (act  Mar.  15,  1898) 51 

Household  furniture — 

Exempt  from  distraint 3187  98 

Hydrometers — 

To  be  prescribed 321,  3249        45, 149 

I. 

Ice — 

Used  in  distillery,  account  of 3303  200 

Illicit  spirits — 

Removing,  concealing,  etc 3296,  3450      197,  357 

Illicit  stills — 

Arrest  of  persons  while  operating [3281a]  175 

Distillery  carrying  on  business  without  giving  bond 3281  173 

Setting  up  still  without  permit 3265  165 

Still  not  registered 3258  157 

To  be  destroyed  in  certain  cases 3332  224 

Imitation  wines — 

lax  on 3328  217 

Imitation  stamps  for — 

Cigars 3397  285 

Distilled  spirits [3316a]  219 

Fermented  liquors 3346  252 


12 
11 

227 

227 

11 
12 

227 
227 

11 

227 

10 
10 

297 
297 

476  INDEX. 

Importation —  Section.  Pagti 

Of  prepared  smoking  opium  forbidden (act  Feb.  9, 1909) 291 

Imported  cigars — 

Duty  of  officers  of  customs 3402  287 

Owner  or  importer  liable  to  all  the  penalties  prescribed  for 
manufacture  of  domestic  cigars 3402  287 

Selling,  not  packed  and  stamped  as  required  by  law. .' 3403  288 

To  be  boxed  and  stamped  same  as  domestic 3402  287 

To  pay  internal-revenue  tax 3402  287 

Imported  cigarettes — 

To  be  packed  and  stamped  same  as  domestic 3392  281 

Imported  tobacco  and  snuff — 

Provisions  relative  thereto 3377  270 

Scraps,  clippings,  and  cuttings  may  be  withdrawn  in  bulk 

without  payment  of  internal-revenue  tax 3377  271 

Imported  spirits — 

Empty  casks,  with  imported  stamps,  marks,  etc.,  thereon, 
or  imitations 

Packages  of,  to  be  stamped,  etc 

Special  stamp  when  packages  of  imported  spirits  are  filled 
on  the  premises  of  a  wholesale  liquor  dealer 

When  packages  are  emptied 

Imported  malt  liquors — 

Packages  to  be  stamped 

Imported  oleomargarine — 

Stamps  for 

Tax  on 

Imported  playing  cards — 

Tax  on 46  247 

Instruments — 

For  attaching,  canceling,  destroying,  etc.,  stamps  may  be 
prescribed  by  commissioner 3445,  3446       354,  355 

For  gauging,  etc.,  to  be  prescribed  by  Commissioner  of  In- 
ternal Revenue 3249  149 

Required  under  internal-revenue  laws,  false  or  fraudulent 
execution 3451  358 

Subject  to  tax  not  properly  stamped  when  issued,  valida- 
tion of 13, 3422       338,  329 

Unstamped,  not  to  be  valid  as  evidence 14  340 

Unstamped,  not  to  be  recorded 15  340 

Indian  Territory — 

Articles  produced  in 3448  356 

Indictments — 

Limitation  of  time  for  finding,  etc (act  July  5,  1884)  1047  397 

Information — 

Secured  by  officers  or  employees'  in  an  official  capacity  not 

to  be  divulged 3167  79 

Informers — 

Rewards  to 3463  365 

Extortion  by 145  417 

Injunctions — 

Not  granted  to  restrain  collection  of  taxes. . .  •. 3224  120 

Injury— 

To  officer  or  person  under  him  in  discharge  of  duty,  damage.  3171  83 

Insolvent  estates 425 

Inspectors — 

Of  tobacco  abolished 67 

Authorized 328 

Interstate  shipment  of  liquors 421 

Insurance — 

On  distilled  spirits  destroyed 3223,  [33306]       119,  223 

Interest,  rate  of — 

In  suits  against  officers  upon  adjust  men!  of  accounts 3624  407 

In  suits  on  bonds 963  394 

On  claims  against  United  States  (see  note) 3220  115 

On  judgments 966  394 


INDEX. 


477 


Interest,  rate  of — Continued. 

On  taxes  overdue 

On  taxes  sued  for  (see  note) 

Secretary  to  allow  interest,  when (act  Mar.  3,  1875) 

Internal  revenue  agents 

Additional,  authorized 

Certain  penal  sections  of  law  made  applicable  to 

Compensation 

Employment  of,  etc 

Expenses  and  subsistence -  -  - 

Facilities  to  be  furnished  for  examination  by  distillers  and 
rectifiers 

Guilty  of  extortion,  failing  to  repi  >rt ,  etc ...  . 

May  break  up  ground  to  search  for  hidden  pipes 

May  demand  production,  etc.,  of  tobacco  peddlers'  stamp 
and  certificate 

May  examine  books  of  corporations  to  verify  return-       '   1 

Number  authorized 

Powers  and  duties  of 

Right  of  entry  into  distillery  and  vinegar  establishments. .  . 

To  report  delinquent  officers  to  commissioner 

To  see  that  the  laws  are  executed 

Internal  revenue  laws- 
Applicable  within  the  exterior  boundaries  of  United  States. 
Internal  revenue,  Commissioner  of.     (See  Commissioner 

of  Internal  Revenue.) 
Inventories  by — 

Cigar  manufacturers 

Manufacturers  of  tobacco  and  snuff 

Oleomargarine  manufacturers 

Opium  manufacturers 

Involuntary  suspension — 

Of  distillery 


Section. 

3184,  3185 

3213 


[3152a] 

3152 

3152,  31526 

3152 

31526 

3277 
3169 

3278 

3383 
38 
3152 
3152,3163 
3276 
3163 
3163 

3448 


Page. 

95,  96 
110 
424 

68 
67 
67,68 
67 
68 

171 

81 
171 

272 

324 

67 

67-75 

170 

75 

75 

356 


3390 

280 

3358 

259 

5 

294 

37 

290 

3310 


206 


Judgments — 

Against  collector  (see  notes) 

Against  United  States  not  to  be  paid  when  claimant  is 
indebted 

Costs  when  paid  bv  defendant 

Docketing  of (act  Aug.  1,  1888) 

Executions  upon 

In  case  of  delinquent  officers,  to  be  rendered  at  return  term. 
except  in  certain  cases 

Interest  on 

Liens  of (act  Aug.  1 ,  1888 1 

Moneys  recovered  on,  to  be  paid  to  collectors 

Recovered  against  collector  or  other  revenue  officers  for  acts 
done  or  for  the  recovery  of  money 

Review  of 

Judicial  sales — 

Of  spirits 

Of  tobacco,  snuff,  and  cigars 

Judicial  districts — 

Offenses  begun  in  one  and  completed  in  another 

Jurisdiction — 

Actions  on  deputy  collector's  bonds 

( 'hange  of,  from  State  to  Federal  court  in  certain  cases 

( >f  circuit  courts 

Of  courts  of  United  States 

Of  courts  of  United  States  in  certain  cases  exclusive  of  State 
courts 

Of  district  courts 

Circuit  court  of  appeals 

Of  suits  against  surety  companies 


3220 


117 


1766 
974 

424 
392 
393 

916,986 

393 

957 
966 

414 
394 
393 

3216 

111 

989 
699,  1008 

398 
395, 396 

3334 
3369 

226 

267 

731 

385 

[3148] 

643 

629 

3213,  711 

64 

386 

383 

109, 384 

711 
563 

384 
383 
395 

5 

369 

478 


INDEX. 


Jurisdiction — Continued. 

Of  suits  to  compel  testimony,  produce  books,  etc.,  relative 

to  special  excise  tax  on  corporations ^  8 

Suits  for  damages  against  officers 

Where  offense  is  commenced  in  one  district  and  completed 

in  another 


Section. 

38 
3171 

731 


Page. 

326 
83 

385 


K. 

Keys — 

Of  distillery  locks  to  be  in  charge  of  collector  or  gauger.  .. .  3267  167 

To  gates  and  doors  of  distillery  to  be  furnished  by  distiller 

to  collector 3275  170 


Labels  on — 

Cigars 3393 

Filled  cheese 8 

Mixed  flour 39 

Oleomargarine 7 

Tobacco  and  snuff 3364 

Labor  organizations — 

Exempt  from  corporation  excise  tax (act  Aug.  5,  1909)  38 

Laches — 

Of  officers 3260a,  notes 

Lager  beer.     (See  Fermented  liquors.) 

Larceny.     (See  Robbery.) 

Laws  of  the  States — 

Rules  of  decision 721,  858, 916 

Leaf  tobacco.     (See  Tobacco.) 

Dealers'  books,  how  kept,  etc 3360 

Dealers  in . 3244 

Planters  and  farmers  may  sell  crop  without  restrictions.  ...  35 

Statement  of  sales  of 3359,  3391 

Leakage — 

When  excessive,  spirits  to  be  withdrawn  from  warehouse.  .  3293 

Leakage,  allowance  for,  on  spirits  withdrawn — 

For  exportation [33306] 

For  transfer  to  manufacturing  warehouses [34336" 

From  warehouse [3294a 

Leave  of  absence.     (See  Absence.) 

Legacies  and  distributive  shares — 

Tax  repealed:  saving  clause 

Assessment,  etc.,  by  collector  on  failure  of  executor,  etc.  . .  8 

Deductions  from  particular  legacies 8 

Effect  of  recital  of  deed 8 

Exhibition  of  papers,  etc 8 

Legal  proceedings  to  recover  tax 8 

Lien  on  testator's  property 8 

Notice  by  executor,  etc 8 

Payment ; 8 

Penalty  for  neglect,  etc.,  on  part  of  executor 8 

Penalty  for  refusal  to  exhibit  papers 8 

Receipts  for  the  tax 8 

Schedules,  etc 8 

Title  vested  in  purchaser,  etc 8 

Legal  representative — 

Of  deceased  special  taxpayer  may  carry  on  the  business 3241 

Lien — 

Act  to  regulate  liens  of  judgments (act  of  Aug.  1,  1888)..  1 

Enforcement  of,  on  real  estate 3207 

For  assessment  for  deficiencies  on  distillers 3309 

For  taxes 3186 

In  certain  cases 3271a 

Not  to  be  impaired  by  change  of  operators 3271a 

Not  to  be  placed  on  distillery  premises  or  apparatus 3260 

Tax  on  distilled  spirits  to  be,  on  what 3251 


282 
307 
311 
295 
264 

321 

161 


392, 
389,393 

261 

260 

261 

261, 281 

175 

223 
336 
186 


315 
316 
316 
317 
317 
316 
315 
315 
315 
317 
317 
316 
316 
317 

130 

393 
105 
203 
97 
169 
169 
159 
150 


3182 

92 

1047 

397 

3228 

122 

2 

372 

1047 

397 

1047 

397 

3214 

111 

3227 

122 

1008 

396 

INDEX.  479 

Limitations—  Section.  Page. 

Of  commissioner's  power  of  assessment  in  case  of  omission, 
etc 

Of  prosecutions 

Of  presentation  of  claims  for  refunding  internal-revenue 
taxes 

Of  suits  against  obligors  on  official  bonds  for  deficiencies  of 
principals (act  Aug:  8, 1888). . 

Of  suits  against  sureties  on  official  bonds 

Of  suits,  etc.,  for  penalties  or  forfeitures,  .(act  July  5, 1884).. 

Of  suits  for  taxes 

Of  suits  for  the  recovery  of  taxes  wrongfully  collected 

Of  writs  of  error  and  appeals 

Liquid  medicinal  preparations — 

Denatured  alcohol  not  to  be  used  in  manufacture  of 2  240 

Liquors.     (See  Distilled  spirits,  Fermented  liquors,  Spe- 
cial taxes.) 

Imitation,  compounds  of,  tax  on 3328  217 

Manufacture  of  spurious,  imitation,  or  compound 3244  134 

Retail  dealers  in,  not  to  purchase  in  quantities  less  than  20 
gallons  except  from  distiller,  rectifier,  and  wholesale 
liquor  dealer,  with  certain  exceptions 3244,  3319      140,  213 

Retail  dealers  in,  special  tax fl  4  3244  136 

Wholesale  dealer  in,  special  tax f  4  3244  136 

Wholesale  dealer  to  keep  book,  etc 3318  211 

Wholesale  dealer  to  put  up  sign 3279  172 

Liquors,  fermented.     (See  Fermented  liquors.) 

List  of  acts  of  Congress  relating  to  internal  revenue 17 

List  of  internal  revenue  collection  districts 37 

List  of  internal  revenue  regulations 39 

Lists — 

Annual,  monthly  and  special 3181  92 

May  be  transmitted  by  collector  to  another  district  where 

person  liable  resides  or  has  property 3209  107 

Of  articles  to  be  manufactured  in  bonded  manufacturing 
warehouse  to  be  filed  with  the  Secretary 23  334 

Of  special  taxpayers  to  be  posted  in  collector  "s  office 3240  129 

Of  taxable  property  owned  by  nonresidents 3180  91 

Or  returns  of  persons  liable  to  tax 3173  86 

Special  or  monthly,  with  errors  corrected,  may  be  certified 
to  collectors  by  commissioner 3182  92 

To  be  charged  to  collector 3218  113 

To  be  made  by  collector  or  deputy  in  certain  cases 3176  89 

Uncollected,  to  be  transferred  by  collector  to  successor  for 

collection 3219  113 

Loan  associations — 

Exempt  from  corporation  excise  tax II  1  38  321 

Locks — 

Breaking,  injuring,  or  tampering  with 3311,  3268       206, 167 

Commissioner  may  require,  to  be  put  on  stills,  etc 3270  168 

Distillery,  to  be  provided  by  commissioner 3267  167 

To  be  furnished  to  collector 3310  205 

Loss— 

Of  spirits  in  warehouse 3293,  3294a,  32946  182, 

185  188 

Of  spirits  by  casualty % 3221  '  117 

Of  spirits  in  transit 33306,  34336       223,  336 

Lost  checks — 

Duplicates  of,  how  procured 3646,  3647  430 

M. 
Machinery — 

In  distilleries,  commissioner  may  require  changes  or  addi- 
tions   3270  168 

Upon  forfeiture  of,  to  be  sold  at  auction 3450  357 

Mail. 

Notice  in  demand  for  taxes  may  be  sent  by 3184  95 


480 


INDEX. 


Malt  liquors.     (See  Fermented  liquors.) 

Wholesale  and  retail  dealers  in,  to  pay  special  tax 

Mandamus.     (See  Injunction.) 
M  anuf  ac  tur  e — 

In  bonded  warehouse  for  export.     (See  Bonded  manufac- 
turing  WAREHOUSE.) 
Manufacturer — 

Of  sugar  from  sorghum  authorized  to  remove  spirits  in  bond 

free  of  tax 

Manufacturer  of  adulterated  butter.     (Act  May  9,  1902.) 

Books,  bonds,  notices,  inventories,  and  returns 

Definition  of..... (act  May  9,  1902) 

Engaging  in  business  without  payment  of  special  tax 

Sales  by,  to  be  made  only  in  original  stamped  packages 

Sign  and  factory  number  of 

Special  tax  of (act  May  9,  1902) 

To  affix  caution  notices 

Manufacturer  of  cigars — 

Definition  of 

Forfeiture  of  property  for  selling,  etc . ,  contrary  to  law 

Inventories,  books,  and  monthly  abstracts 

May  purchase  leaf  tobacco  for  use  in  his  own  manufactory 
exclusively,  how 

Penalty  and  forfeiture  for  knowingly  or  willfully  violating 
the  law  relative  to  carrying  on  his  business  where  there  is 
no  specific  penalty  imposed  by  any  other  section 

Records 

Sign 

Statement,  bond,  and  certificate 

To  affix  labels  to  cigars 

To  be  numbered 

Manufacturer  of  filled  cheese (act  of  June  6,  1896). 

Special  tax  and  definition  of (act  June  6,  1896) 

Manufacturer  of  mixed  flour (act  June  13,  1898) 

Special  tax  of 

Manufacturer  of  oleomargarine — 

Books,  bonds,  inventories,  notices,  and  returns 

Failure  to  pay  special  tax,  penalty 

Penalty  for  carrying  on  business  as,  without  payment  of 
special  tax 

Special  tax,  and  definition  of (act  Aug.  2,  1886) 

To  affix  caution  notice 

Manufacturer  of  playing  cards (act  Aug.  28,  1894) 

Manufacturer  of  prepared  smoking  opium  fact  Oct.  1,  1890) 
Manufacturer  of  process  or  renovated  butter.    (Act  May  9, 
1902.) 

Books,  bonds,  notices,  inventories,  and  returns 

Definition  of 

Engaging  in  business  without  payment  of  special  tax 

Sign  and  factory  number  of 

Special  tax  and  definition  of 

Manufacturer  of  stills — 

Distillers  who  make  wooden  stills  for  own  use  not  liable 

Notice  to  be  given  by,  on  removal  of  still 

Penalty  for  doing  business  without  payment  of  special  tax .  3: 

Special  tax  and  definition  of 

Manufacturer  of  tobacco — 

Assessment  on,  for  tobacco,  etc.,  removed  without  stamps. . 

Definition  of 

Defrauding  ( invernment  of  tax;  penalties 

How  to  put  up  and  prepare  for  sale  manufactured  tobacco. . . 

Inventories,  books  and  monthly  abstracts  of,  penalty 

Manufactories  to  be  numbered 

Penalties — 

Failing  to  keep  accounts,  inventories,  etc 

Failing  to  post  certificate 


Section. 
3244 


Page. 
140 


[3251c] 


3244 


154 


4 

301 

4 

300 

3242c 

132 

4 

301 

4 

301 

4 

143 

4 

301 

3244 

278 

3400 

287 

3390 

280 

278 


3456 

361 

3389 

280 

3388 

280 

3387 

279 

3393 

282 

3389 

280 

.......... 

305 

3 

144 

310 

36 

145 

5 

294 

4 

293 

32426 

131 

3 

141 

7 

295 

343 

290 

4 

300 

4 

300 

3242c 

132 

4 

301 

4 

143 

3244 

133 

3265 

165 

242,[3242a] 

131 

3244 

133 

3371 

268 

69 

256 

3372 

269 

3362 

263 

3358 

259 

3357 

259 

3358 

259 

3355 

257 

INDEX.  481 

Manufacturer  of  tobacco — Continued.  Section.  Page. 

Penalties — Continued. 

Failing  to  post  sign 3356  259 

For  removing  tobacco  or  snuff  without  payment  of  tax 3374  269 

Manufacturing  tobacco  or  snuff  without  giving  bond 3355  257 

Record  of 3357  259 

Statement,  bond,  and  certificate 3355  257 

To  affix  labels 3364  264 

To  put  up  sign 3356  259 

Marshals — 

Accepting  gifts,  etc.,  for  settlement  of  violation  of  internal- 
revenue  laws 3170  83 

Commissioner  to  make  regulations  respecting 3215  111 

Duties  relative  to  goods  seized  for  violation  of  internal- 
revenue  laws 3458  362 

Dutv  of,  on  making  an  arrest (act  Aug.  18,  1894) 403 

Fees  of 402 

To  arrest  illicit  distillers [3281a]  175 

To  execute  deed  of  real  estate  sold  in  cases  of  delinquent 

collector 3217  112 

To  obliterate,  etc.,  tax-paid  stamps  on  sale  of  condemned 

spirits 3334  226 

When  to  make  conveyance  of  lands,  etc.,  to  United  States 

(see  note) 3470  106 

Mash  (distillery) — 

Fit  for  distillation,  producer  of,  is  distiller 3247  149 

None  to  be  made  between  11  p.  m.  Saturday  and  1  a.  m. 

Monday 3283  177 

None  to  be  removed  from  distillery  before  being  distilled..  3282  176 

Ratio  of,  to  grain  and  molasses 3264  164 

Restriction  on  production  for  distillation 3282  176 

Materials — 

Entry  of,  used  at  distillery 3302,  3303  200 

For  denaturing  alcohol 1  239 

In  possession  for  fraudulent  manufacture  in  evasion  of  tax, 

liable  to  seizure 3453  359 

May  be  conveyed  into  bonded  manufacturing  warehouse 

without  payment  of  tax 23  333 

Purchased   or  used   for  production  of  fermented   liquors, 

assessment  not  to  be  based  on 3337a  245 

Received,  record  of,  to  be  kept  by  storekeeper 3302  200 

Supervision  of,  at  wineries  where  sweet  wines  are  fortified. .  4  233 

Use  of,  in  absence  of  storekeeper,  penalty 3284  177 

Using  unregistered,  for  distillation 3306  202 

Waste   may   be   withdrawn    from   bonded    manufacturing 

warehouse 23  333 

Meal  or  flour — 

May  be  ground  from  grain  on  distillery  premises,  when 3266  166 

Medicinal  compounds — 

Exported,   drawback  of    internal-revenue    tax  on  alcohol 

used  in  mauufacture  of 25  337 

Manufacture  of,  by  apothecary 3246  145 

See  also  Notes fl  3,  4  3244      135-139 

Messengers  and  laborers — 

Office  of  Internal  Revenue,  number  allowed 49 

Microscopist — 

Commissioner  authorized  to  employ  (see  Note) 49 

Mileage — 

None  allowed  to  clerks,  etc.,  sent  away  as  witnesses 850  436 

Only  actual  traveling  expenses  allowed  (act  of  June  16, 

1874) 436 

Minimum  price — 

Real  estate  may  be  offered  at  a 3197  101 

Miscellaneous  expenses — 

Appropriation ". ". 54 

Statement  of «..,,,,,,,.  366 

72170°— 11 31 


482  INDEX. 

Mixed  flour.     (Act  of  June  13,  1898.)  Section.  Page. 

Assessments 41  312 

Denned 35  310 

Exportation  of 44  313 

Forfeiture 43  313 

Imported 42  312 

Labels 39  311 

Packages  of,  to  be  marked  and  branded 37  311 

Penalties 43  313 

Registry 3233  126 

Regulations  respecting 47  313 

Repacked  flour 40  312 

Special  tax  on  manufacturers 36      145,  310 

Stamps 40  312 

Tax  on 40  312 

Moiety 3454  360 

Molasses — 

Penalty  for  delivery  of,  at  distillery  having  no  sign 3279  172 

Seven  gallons  of  mash  or  beer  to  represent  1  gallon  of 3264  164 

Moneys.     (See  Public  moneys.) 

Recovered  by  suit  to  be  paid  collectors 3216  111 

To  be  paid  into  the  Treasury  without  deduction 3210,3617       107,  404 

Monthly  return.     (See  Returns.) 

Of  distillers 3307  202 

Of  persons  liable  to  tax 3185  96 

Mortgage — 

If  any  existing  on  distillery  premise,  consent  of  mortgagee 

to  be  filed  before  approval  of  bond 3262  162 

Not  to  be  placed  on  distillery  premises  or  apparatus 3260  159 

N. 

Name  as  known  to  the  trade — 

Liquors  must  be  shipped  under 3449  856 

National  banks 

Monthly  returns  to  be  made  of  amount  of  such  notes 3414  351 

Taxes  on  notes  of  persons,  municipal  corporations,  etc.,  used 

or  paid  out  by 3412,  3413      349,  350 

Nolle  prosequi — 

Of  prosecution  under  section  3257  not  allowable,  except. . .  3230  124 

Nonresidents — 

Taxable  property  owned  by 3180  91 

Notes.     (See  National  banks  and  Banks.) 

Of  banks  or  persons  paid  out,  tax  on 3412,  [3413  a  &  b]      349,  350 

Of  town,  city,  or  municipal  corporation,  tax  on 3413,  [3413  a  &  b]  350 

Notice — 

By  brewer 3335  243 

By  manufacturer  of  still 3265  165 

By  rectifier  of  intention  to  rectify [3317a]  210 

Caution  notice  for  adulterated  butter 4  301 

Caution  notice  for  cigars 3393  282 

Caution  notice  for  filled  cheese 8  307 

Caution  notice  for  mixed  flour 40  312 

Caution  notice  for  oleomargarine 7  295 

Caution  notice  for  tobacco  and  snuff 3364  264 

In  case  of  seizure  of  property  of  tobacco  peddler 3383  272 

In  distraint  for  taxes 3190  99 

Of  change  by  distiller  or  rectifier 3259  158 

Of  court  to  produce  books,  etc.,  in  revenue  cases 5  390 

Of  deficiency  in  accounts  of  principals  to  be  given  to  sure- 
ties   372 

Of  execution  of  process  on  agent  to  be  given  surety  company  2  369 

Of  intention  to  carry  on  business  of  distiller  or  rectifier 3259  158 

Of  manufacturer  of  smoking  opium 37  290 

Of  resumption  by  distiller.' .- 3310  206 

Of  sale  of  real  estate  for  taxes 3197  101 

Of  seizure  of  goods  of  value  of  $500  or  less If  2  3460  364 


INDEX.  483 

Notice— Continued.  Section.  Page. 

Of  suspension  by  distiller 3310  205 

To  be  left  by  deputy  collector  for  absent  persons 3173  87 

To  taxpayers  by  collector  or  deputy  collector 3184,  3185  95,  96 

To  corporations 325 

Oaths — 

Affirmation  instead  of  (see  Note) 3140  58 

Form  of,  to  be  attached  to  distiller's  return 3307  202 

Form  of,  to  verify  entries  in  brewer's  book 3338  245 

May  be  administered  by  collectors  and  deputy  collectors...  3162,  3165  75,  78 

Perjury,  punishment  for 5392  414 

■What,  to  be  taken  by  customs  and  internal-revenue  officers, 

etc.,  before  receiving  payment  of  salaries 1790  437 

Obstructing — 

Internal-revenue  officer 3177, 3276        90, 171 

Officer  in  serving  warrant 5398  415 

Occupation — 

More  than  one  carried  on  at  the  same  time  and  place,  special 

tax  to  be  paid  for  each 3236  127 

Not  to  be  carried  on  in  more  than  one  place  at  the  same 

time  without  payment  of  tax  at  each  place 3235  126 

On  which  special  tax  is  imposed  not  to  be  carried  on  until 

tax  is  paid 3232  125 

Offense.     (See  Penalties.) 

Begun  in  one  judicial  district  and  completed  in  another.  . .  731  385 

Conspiracy  to  commit  an,  against  the  United  States 5440  418 

Office  expenses — 

Allowance  for (act  Mar.  1,  1879)  3148  65 

Office  force— 

Of  Internal-Revenue  Bureau (act  June  17,  1910) 54 

Officers — 

Bribing  of  and  accepting  bribes 5451,  5501      416, 417 

Delinquent  in  rendering  accounts,  to  be  reported  to  Con- 
gress   12  407 

Disbursing,  duties  of 87,  3620,  3621,  3622,  3623,  3643     409,  404, 

405,  407 

Expenses  of,  sent  away  as  witnesses 850  436 

Failing  to  deposit  moneys  (see  Embezzlement) 

Falsely  assuming  to  be 5448  [5448a]  416 

Forbidden  to  act  as  agents  for  prosecuting  claims  against  the 

United  States 

Forbidden  to  disclose  operations  of  manufacturers 

Forbidden  to  give  to  other  officers  or  receive  contributions 

for  political  purposes (act  Aug.  15,  1876) 

Forbidden  to  receive  gifts  from  subordinates 

Guilty  of— 

Conspiracy  or  collusion 

Demanding  or  accepting  anything  of  value  for  compro- 
mise or  settlement  of  charge  or  complaint 

Demanding  greater  sums  than  authorized  by  law 

Doing  or  omitting  any  act  to  enable  any  person  to 

defraud 

Extortion 

Failing  to  report  violations  of  law  to  superior  officer 

Making  opportunity  to  defraud 

Making  false  entries  or  certificate 

Neglect  of  duties  enjoined  by  law 

Oppression 

Permitting  violation  of  law 

Receiving  fee,  compensation,  or  reward  except  as  pre- 
scribed by  law 

May  break  open  doors  or  windows  of  distilleries  and  vinegar 

establishments 

May  break  up  ground  to  search  for  hidden  pipes 

May  destroy  empty  oleomargarine  packages  (act  Aug.  2, 

1886) 13  298 


5498 

437 

3167 

79 

6 

438 

1784 

438 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3169 

81 

3276 

171 

3278 

171 

3276  171 


484  INDEX. 

Officers— Continued.  Section.  Page. 

May  enter  distilleries  and  vinegar  establishments  and  ex- 
mine - 

May  enter  in  daytime  places  where  objects  liable  to  tax  are 
made  or  stored 

May  maintain  suits  for  injury  to  person  or  property 

No  allowance  for  extra  services 1764, 1765 

Not  entitled  to  pay  if  reports  are  not  made 

No  mileage  beyond  traveling  expenses 

Not  to  accept  voluntary  service  for  the  Government 

Not  to  act  as  attorney  for  prosecution  of  claims  within  two 
years  after  leaving  office 

Not  to  exact  from  employees  receipts  greater  than  sums  paid . 

Not  to  divulge  information  relative  to  corporation-tax  returns 

Penalty  for  neglecting  to  render  a  statement  of  fees,  commis- 
sions, etc 

Penalty  for  issuing  spirit  stamps  illegally 

Prohibited  from  being  interested  in  the  manufacture  of 
spirits  or  tobacco 

Preference  of  soldiers  for  appointment 

Removal  of  suits  against,  to  United  States  circuit  courts. 

Restriction  as  to  engaging  in  certain  business 244, 1788, 

Restriction  in  number  of 

To  be  defended  by  district  attorneys 

To  report  violations  of  law 

Who  are notes 

Official  bond — 

Premium  on „ (act  Aug.  5,  1909) 

Requirements  of  law  relative  to 

Oleomargarine.     (Act  of  Aug.  2,  1886.) 

Act  went  into  effect  October  31,  1886 

Appeal  from  commissioner's  decision 

Artificial  coloring  of 

Assessments 

Board  of  appeal 

Bonds  of  manufacturers 

Books  of  manufacturers 

Branding  of 

Chemist,  salary,  etc 

Commissioner  to  decide  what  substances  are  taxable 

Commissioner  to  decide  whether  any  substance  contains 

ingredients  injurious  to  health 

Commissioner  to  employ  chemists  and  microscopists 

Commissioner  to  make  regulations 

Constituents  of 

Definition  of 

Destruction  of  empty  oleomargarine  packages 

Exportation  of 

Exported 

Forfeiture  of  factory  in  case  of  fraud •. 

Forfeiture  of,  for  doing  things  prohibited 

Forfeiture  of,  to  be  recovered  in  any  court  of  competent 

jurisdiction 

Forfeiture  of  unstamped  oleomargarine  and  oleomargarine 

deleterious  to  health 

How  to  be  packed 

Imported 

Inventories 

Labels  on  packages 

Manufacturers,  books  and  rot  urns  of 

Manufacturers,  definition  of 

Manufacturers,  special  tax  of 

Microscopist,  salary,  etc 

Notice  on  packages 

Packing  of 

Retail  dealer,  defined 


3177 

90 

3171 

83 

1764, 1765 

435 

3147 

63 

850 

436 

•  1760a 

434 

190 

437 

86 

409 

38 

326 

3158 

75 

3316 

209 

3168 

80 

1754 

431 

643 

386 

244, 1788, 

436.  412, 

1789, 3168 

80 

3157 

74 

771 

401 

3169 

81 

3169 

82 

372 

5 

371 

21 

298 

14 

298 

8 

295 

9 

296 

14 

298 

5 

249 

5 

249 

6 

294 

14 

298 

14 

298 

14 

298 

14 

298 

20 

300 

2 

293 

2 

293 

13 

297 

16 

298 

16 

298 

17 

299 

18 

299 

19 

300 

15 

298 

6 

294 

10 

296 

5 

294 

7 

295 

5 

294 

3 

141 

3 

141 

14 

298 

7 

295 

6 

294 

3 

142 

INDEX. 


485 


Oleomargarine — Continued. 

Returns  of  manufacturers 

Shipped  in  .interstate  commerce  subject  to  State  laws  on 

arrival  at  destination (act  May  9,  1902) 

Signs  of  manufacturer 

Special  taxes  of  manufacturers,  wholesale  dealers,  and  retail 

dealers 

Stamps 

Stock  on  hand  October  31,  1886 

Tax  on 

Tax,  payable  by  stamps 

Tax,  rate  of 

Tax,  when  to  be  assessed . 

Tobacco,  provisions  relative  to  stamps  apply 

Wholesale  dealers,  defined;  to  keep  books 

Wholesale  dealers  in,  to  keep  books  and  make  returns  as 

required  by  regulations (act  May  9,  1902) 

Penalties — 
For  buying,  selling,  giving  away  empty  stamped  packages. 
For  doing  things  prohibited  or  not  doing  things  required. . . 
For  engaging  in  business  of  manufacturer  to  defraud  the 

revenue  (forfeiture) 

For  false  branding 

For  neglecting  to  destroy  stamps  on  empty  packages 

For  neglecting  to  affix  labels 

For  packing  contrary  to  law 

For  receiving  for  sale  oleomargarine  from  a  manufacturer 

who  has  not  paid  special  tax 

For  receiving  for  sale  unstamped  oleomargarine 

For  removing  labels 

For  removing  or  defacing  stamps,  marks,  or  brands 

For  selling  imported  oleomargarine  not  properly  stamped... 

For  selling  in  other  than  prescribed  packages 

Incurred  by  officers  of  customs 

Manufacturers  failing  to  pay  special  tax 

Recoverable  in  any  court  of  competent  jurisdiction 

Retail  dealers  failing  to  pay  special  tax 

Wholesale  dealer  failing  to  keep  books  and  make  returns 


(act  May  9,  1902) 


Wholesale  dealers  failing  to  pay  special  tax 

Omitting  or  doing — 

Tilings  required  or  prohibited 

Opium  (prepared  smoking).     (Act  of  Oct.  1,  1890). 

Imported 

Importation  of,  for  other  than  medicinal  use  illegal  (act  Feb. 
9,  1909,  sec.  40) 

Notices,  inventories,  and  bonds 

Penalty 

Sales  of  unstamped 

Stamps 

Tax  on 

Oranges — 

Brandy  made  from,  may  be  exempt  from  certain  provisions . 


Section. 

Page. 

5 

294 

1 

293 

5 

294 

3 

141 

,142 

8,10 

295 

-296 

21 

300 

8,10 

295 

-296 

9 

296 

8,10 

295 

-296 

9 

296 

8 

295 

3 

142 

6 

294 

13 

297 

18 

299 

17 

299 

6 

294 

13 

297 

7 

295 

6 

294 

12 

298 

11 

297 

7 

297 

15 

298 

10 

296 

6 

294 

10 

297 

32426, 4 

131 

,239 

19 

300 

32426,  4 

131 

,293 

6 

304 

32426,  4 

131 

,293 

3456 


3255 


361 
290 

291 

290 
291 
291 
290 
290 


155 


Packages — 

Change  of,  of  spirits  in  bond  designed  for  exportation [3330a]  222 

For  adulterated  butter (act  May  9,  1902)  4  300 

For  cigarettes 3392  281 

For  oleomargarine 6  294 

For  cigars 3392  281 

Of  fermented  liquors,  marks  on 3349  253 

Of  imported  spirits 11, 12,  13      227-228 

Of  manufactured  tobacco  and  snuff 3362  263 

Of  renovated  butter (act  May  9,  1902)  5  303 

Of  tobacco,  snuff,  cigars,  or  cigarettes  not  to  contain  lottery 

tickets  or  immoral  pictures 3394  284 


486  INDEX. 

Packages— Continued.  Section.  Page. 

Size  of,  tobacco  and  snuff 3362  263 

Wood,  metal,  paper,  or  other  materials  may  be  used  for 

packing  tobacco,  snuff,  and  cigars 3362  263 

Pardon — 

Effect  of ,  etc 3469  400 

Partnerships — 

Included  in  the  word  "person" 3140  58 

Pawpaws — 

Brandy  made  from,  may  be  exempted  from  certain  provisions  3255  155 

Peaches  and  pears — 

Brandy  made  from,  may  be  exempt  from  certain  provisions.  3255  155 

Peddlers  (of  tobacco,  snuff,  and  cigars) — 

Definition 1f  11  3244  271 

Penalty  on,  peddling  in  violation  of  law 3384  273 

Refusal  to  exhibit  certificate 3383  272 

To  affix  sign 3382  272 

To  give  bond  and  furnish  statement  to  collector 3381  272 

To  obtain  certificate  from  collector,  etc 3383  272 

Penalties.    (See  Forfeitures.) 

For  violations  of  law  relating  to  Distilled  spirits,  Fer- 
mented liquors,  Cigars,  Tobacco,  Oleomargarine, 
Opium,  Playing  cards,  Filled  cheese,  Mixed  flour, 
Adulterated  butter,  Fortification  of  wines,  Spe- 
cial taxes  and  Corporations,  see  under  those  heads. 

Bribery 3169,  3170,  5451,  5501         81,  83, 

416,  417 
Clerks  in  Treasury  Department  carrying  on  any  trade  or 
business  in  the  funds  of  the  United  States,  etc.,  or  taking 
any  emolument  for  transacting  any  business  in  the  De- 
partment   244  436 

Collected  without  authority,  abated,  etc.,  by  commissioner .  3220  114 

Collecting  officers  trading  in  public  property 1789  412 

Conspiracy  to  defraud 5440  418 

Conspiracy  to  prevent  persons  from  accepting  office 5518  417 

Costs  in  suits,  etc.,  for,  when  United  States  not  subject  to..  969  392 

Counterfeiting  United  States  stamps  or  securities.  3328,  3346,  3429,  5414     217,  252, 

332, 420 

Destroying,  carrying  away,  etc.,  public  records 5403  418 

Destroying  records  by  officer  in  charge 5408  418 

Disbursing  officer  depositing  public  money  otherwise  than 
authorized,  loaning  same,  withdrawing  from  depositary, 

or  applying  for  purposes  not  authorized 5488  409 

Disbursing  officer  trading  in  public  funds  or  property 1788  412 

Disposing  of  or  receiving  empty  stamped  packages  and  other 

offenses  relating  to  stamped  packages 3455  360 

District  attorney  or  marshal  accepting  or  demanding  any- 
thing for  compromise  of  violation  of  law 3170  83 

Districtattorneys  to  prosecute  for 838  401 

Extortion  by  internal  revenue  informers 5484  417 

Extortion,  receiving  unlawful  fees,  and  other  unlawful  acts.  3169  81 

Failing  to  obey  summons 3175,  3179  88,  91 

Failing  to  make  return  or  making  false  return 38,  3176        326,  89 

Failure  of  officer  having  public  money  to  render  accounts. .  5491  410 

Failure  of  persons  having  public  moneys  in  possession  to 

to  deposit  when  required 5492  410 

Falsely  assuming  to  be  a  revenue  officer 5448,  (5448a)  416 

Falsely  making,  altering,   forging,   or  counterfeiting  bid, 

bond,  etc 5418,5179  420 

Fifty  per  cent .--.----.- 3176  89 

Forging,  counterfeiting,  etc.,  stamps,  securities,  bids,  bonds, 

or  obligations  of  United  States 5414,  5418,  5479  420 

Five  per  cent 3184,  3185  95,  96 

For  bank,  etc.,  refusing  or  neglecting  to  make  return  and 

payment 3415  352 

For  collectors,  etc.,  approving  bond  of  distiller  before  law 
has  been  complied  with 3261  162 


INDEX.  487 

Penalties— Continued.                                                                     .  Section.  Page. 
For  collectors,   etc.,   collecting  special  tax  from  rectifier 

within  600  feet  of  distillery 3244  135 

For  collectors,  etc.,  issuing  internal  revenue  stamps  before 

payment .  t3169aJ  82 

For  collectors,  etc.,  issuing  stamps  for  distilled  spirits  to 

other  persons  than  as  provided  for  by  law 3316  209 

For  collectors,  etc.,  neglecting  duties  and  failing  to  make 

reports 1780,3169        412,81 

For  distillers,  rectifiers,  wholesale  liquor  dealers  and  manu- 
facturers of  tobacco  or  cigars  omitting  things  required,  or 
doing  things  forbidden,  where  there  is  no  specific  penalty 

imposed  by  any  other  section 3456  361 

For  offenses  committed  by  internal-revenue  officers  appli- 
cable to  all  persons  acting  as  such [31696]  83 

For  officer,  internal  revenue — 

Being  interested  in  certain  manufacturing 3168  80 

Disclosing  operations  of  manufacturers 3167  79 

Omitting  or  neglecting  to  render  statement  of  fees, 

commissions,  etc 3158  74 

For  sale  of  goods  to  avoid  tax 3454  360 

Fraudulently  executing  or  simulating  documents  required 

by  internal-revenue  laws 3451  358 

Giving  to  Government  officers  contributions  for  political 

purposes 6  438 

Having  property  in  possession  with  intent  to  sell  in  fraud 

of  internal-revenue  laws  or  to  evade  tax 3452, 3453  359 

How  recoverable 3213  109 

Jurisdiction  of  suits  for 563,  629,  711,  732  383, 

384, 385 
Loaning,  using,  converting,  improperly  depositing  public 

money 5490  410 

Making  false  or  fraudulent  claims 5438  420 

Making  false  returns  or  refusing  to  produce  books,  etc.,  with 

intent  to  defeat  or  evade  assessments 38,  3179        326,  91 

Making  fraudulent  claims  for  drawback 3330,  [3386a],  3443  220, 

277,  353 

Moneys  recovered  from,  to  be  paid  to  collectors 3216  111 

Obstructing  or  hindering  officer  in  executing  law 3177, 3276        90, 171 

Obstructing  process  or  assaulting  officer 5398  415 

Officer  or  clerk  receiving  compensation  in  claims  or  matters 

before  the  department 1782  436 

Officer  or  employee  and  others  embezzling  public  money. . .  5497  411 

Officers  accepting  bribe 5501,  5502  417 

Officers  acting  as  agents  in  prosecuting  claims 5498  437 

Officers  guilty  of — 

Conspiracy  or  collusion 3169  81 

Demanding  greater  sums  than  authorized  by  law 3169  81 

Demanding  or  accepting  anything  of  value  for  compoo- 

mise  or  settlement  of  charge  or  complaint 3169  81 

Doing  or  omitting  any  act  to  enable  any  person  to 

defraud 3169  81 

Extortion 3169  81 

Failing  to  report  violations  of  law  to  superior  officer.  .  .  3169  81 

Making  false  entries  or  certificates 3169  81 

Making  opportunity  to  defraud 3169  81 

Neglect  of  duties  enjoined  by  law 3169  81 

Oppression 3169  81 

Permitting  violation  of  law 3169  81 

Receiving  fee,  compensation,  or  reward,  except  as  pre- 
scribed by  law 3169  81 

Officers  of  courts  failing  to  deposit  moneys 5504  412 

One  hundred  per  cent 3176  89 

Pecuniary,  may  be  recovered  in  district  where  they  accrue 

or  where  the  offender  is  found 732  385 

Perjury 5392  414 


5505 

412 

3292 

181 

3300 

199 

3450 

358 

5483 

409 

3177 

90 

5401 

415 

5456 

419 

5,919 

109,  385 

8 

370 

5446 

416 

3213 

109 

5 

429 

5454 

419 

5497 

411 

488  INDEX. 

Penalties— Continued.  Section.  Page. 

Person  not  authorized  receiving  public  moneys  on  deposit 

or  as  a  loan 5497  411 

Persons  unlawfully  receiving  moneys  belonging  in  registry 

of  courts 

Relating  to  gaugers 3290,  3292 

Relating  to  storekeepers 

Removing  or  concealing  articles  with  intent  to  defraud  the 

United  States .  _ 

Requiring  a  receipt  for  a  larger  amount  than  that  actually 

paid 

Rescuing  property  seized  by  officer 

Rescue  of  prisoners 

Robbery  or  larceny  of  property  of  United  States,  receiving 

property  stolen 

Suits  for,  to  be  brought  in  name  of  United  States 3213,  919 

Surety  company  failing  to  comply  with  provisions  of  law 

authorizing  it  to  act 

Taking  seized  property  from  custody  of  revenue  officers 

To  be  sued  for  by  collector 

Unlawful  use  of  official  envelopes (act  Mar.  3,  1877) 

Unlawfully  taking  or  using  papers  relating  to  claims 

Using,  transferring,  converting  public  money  unlawfully.  .  . 

Violating  the  prohibition  of  contributions,  presents,  etc.,  to 

official  superiors  by  persons  in  the  employment  of  the 

Government 1784  438 

Within  what  time  suit  or  prosecution  for,  to  be  commenced, 

etc (act  July  5,  1884)  1047  397 

Penalty  envelopes (act  of  Mar.  3, 1877)..-. 429 

Perforation — 

Cancellation  of  fermented -liquor  stamps  may  be  by 3342  250 

Perfumery  exported — 

Drawback  of  internal -revenue  tax  on  alcohol  used  in  man- 
ufacture of 

Perique  tobacco — 

IS o  tax  on,  when 

Perishable  property — 

Seized,  sale  of 

Perjury — 

False  statement  by  officer  relative  to  fees,  etc 

Punishment  for 

Permanent  annual  appropriations 

Permits — 

For  removal  of  alcohol  from  bond  for  scientific  purposes 

For  removal  of  distilled  spirits  for  exportation 

For  removal  of  fermented  liquors 

For  removal  of  stills 

For  removal  of  tobacco,  snuff,  and  cigars  for  exportation 

To  brewer  to  conduct  business  at  another  place  on  account 

of  accident 

Permission — 

Officer  negligently  permitting  violation  of  law •. . . 

Persimmons — 

Brandy  made  from,  may  be  exempted  from  certain  provi- 
sions    3255  155 

Person — 

Includes  corporation 3140  58 

Personation — 

Of  revenue  officer 5448  [5448o]  416 

Philippine  Islands 

Drawback  or  refund  on  articles  shipped  to. (act  May  8,  1892)  6  376 

No  United  Stales  internal-revenue  taxon  articles  going  into, 

from  United  States (act  Aug.  5,  1909)  5  377 

Taxon  articles  coming  from (act  Aug.  5,  1909)  5  377 

Bonds  on  exportation  to 377 

Pineapples — 

Brandy  made  from,  may  be  exempted  from  certain  provi- 
sions   3255  155 


25 

337 

3362 

263 

3459 

362 

3158 
5392 
3689 

75 
414 
425 

3297 
3330 
3345 
3265 
3385 

197 
220 
251 
165 
273 

3350 

253 

3169 

81 

INDEX.  489 

Pipes —  Section.  Page. 

Of  distillery,  how  to  be  fixed  and  painted 3269  168 

Pipe  lines — 

Of  breweries  authorized 3354  254 

Plan  of  distillery — 

To  be  made 3263  163 

Playing  cards.     (Act  Aug.  28,  1894.) 

Adhesive  stamp  provided  for 39  343 

Assessment  of  unpaid  tax  to  be  made  within  two  years 47  347 

Every  person  exposing  for  sale  playing  cards,  domestic  or 
foreign,  deemed  to  be  the  manufacturer  and  liable  to 

the  tax 46  347 

May  be  removed  for  export  without  payment  of  tax 43  346 

Manufacturer  removing  or  reusing  stamp,  wrapper,  or  cover 

to  evade  tax  liable  to  fine  and  forfeiture 44  346 

Manufacturer  to  register  with  collector  and  penalty  for 

failure 40  344 

Penalty  for  counterfeiting,  defacing,  removing,  or  illegal 

use  of  stamp 42  344 

Penalty  for  removal  or  sale  of  cards  without  stamp  affixed . .  43  346 
Penalty  for  selling,  exposing  for  sale,  removing,  or  conceal- 
ing playing  cards  without  stamp  affixed 45  346 

Penalty  for  use  of  stamp  without  canceling 39  343 

Stamps  to  be  furnished  by  the  collector  to  registered  man- 
ufacturers and  importers 41  344 

Tax  of  2  cents  on  every  pack 38  343 

Plums — 

Brandy  made  from  may  be  exempt  from  certain  provisions.  3255  155 

Political  contributions — 

Prohibition  respecting 438 

Porter.     (See  Fermented  liquors.) 
Porto  Rico — 

Deputy  collector  of  internal  revenue  to  be  stationed  in  (act 

June  29,  1906) 374 

Internal-revenue  laws  not  applicable  to 14  374 

Tax  on  bay  rum  and  alcoholic  articles  from 32516  152 

Tax  on  merchandise  from 3  373 

Possession  of — 

Apparatus  for  refining  distilled  spirits  by  wholesale  liquor 

dealer  or  retail  liquor  dealer,  liability  as  rectifier fl  3  3244  134 

Unregistered  stills  set  up,  penalty 3258  157 

Postage — 

Allowance  to  collectors  for [3148]  65 

Government  matter  free  of (act  Mar.  3,  1877)  5  429 

Power  of  attorney — 

For  acceptance  of  legal  service,  etc.,  to  be  filed  by  surety 

companies 2  368 

Practice — 

In  United  States  courts  conforms  to  proceedings  in  State 

courts 914,  916       392,  393 

Premium — 

On  official  bonds  executed  by  surety  companies  (act  Aug.  5, 

1909) 372 

Presents — 

Soliciting  or  receiving,   from  employees  by  superiors  in 

office 1784  438 

To  internal-revenue  officers  for  compromise,  etc.,  of  viola- 
tion of  law 3169  81 

To  marshals  or  district  attorneys  for  compromise,  etc 3170  83 

President — 

Authorized  to  prescribe  regulations 1753  431 

Authorized  to  regulate  bonds  of  certain  officers 3639  409 

May  establish  collection  districts 3141  58 

To  appoint  commissioner 319  45 

To  appoint  collectors 3142  59 

To  give  orders  and  approve  regulations  relative  to  publicity 
of  corporation  excise  tax  returns (act  June  17,  1910) 328 


490  INDEX. 

Printing.     (See  Public  Printer.)  Section.  Page. 

Priority — 

Of  United  States 3466  425 

Of  transmission  of  telegrams 5266  430 

Privileged  communications 391 

Probable  cause — 

Certificate  of 970,  989  398 

Procedure — 

In  civil  cases  in  United  States  courts  to  conform  to  rules  in 
State  courts 914,  916      392,  393 

Process  butter.     (See  Renovated  butter.) 

Producing  capacity — 

Of  distilleries,  how  determined 3264  164 

Tax  to  be  paid  on  not  less  than  80  per  cent  of 3309  203 

Production  of — 

Books  and  papers  before  collector 3173  87 

Books  and  papers  in  court (act  June  22,  1874)  5  390 

Products  of  distillation — 

By  whatever  name  known,  to  be  taxed  as  distilled  spirits, 
if  containing  distilled  spirits 3254  155 

Prohibition  against — 

Accepting  voluntary  service  for  the  Government [1760a]  434 

Acting  as  agents  for  prosecuting  claims  against  the  United 

States 5498  437 

Approving  distiller's  bond  before  provisions  of  law  are 

complied  with 3261  162 

Being  interested  in  the  manufacture  of  spirits  or  tobacco. . .  3168  80 

Collection  of  special  tax  for  rectifying  on  premises  within 

600  feet  of  distillery H  3  3244  135 

Conspiracy  or  collusion  to  defraud 3169  81 

Demanding  or  accepting  anything  of  value  to  compromise 

or  settle  a  charge 3169  81 

Demanding  other  or  greater  sums  than  authorized  by  law. .  3169  81 

Disclosing  operations  of  manufacturers 3167  79 

Divulging  information  derived  from  corporation  excise  tax 

returns If  7  38  326 

Engaging  in  certain  business 244, 1788, 1789      436, 412 

Extortion 3169  81 

Failing  to  deposit  moneys.     (See  Embezzlement.) 

Failing  to  report  violation  of  law  to  superior 3169  81 

Giving  to  other  officers  or  receiving  contributions  for  politi- 
cal purposes (act  Aug.  15,  1876) 438 

Issuance  of  receipt  in  lieu  of  stamp 3183  94 

Issuance  of  stamps  before  payment  in  full  therefor 3169a  81 

Issuing  spirit  stamps  illegally 3316  209 

Making  opportunity  to  defraud  the  United  States 3169  81 

Making  or  signing  false  entry  or  certificate 3169  81 

Neglecting  to  perform  duties  enjoined  by  law 3169  81 

Receiving  gifts  from  subordinates 1784  438 

Revenue  officers  issuing  or  fixing  spirit  stamps  except  in 

manner  provided  by  law 3316  209 

Storekeeper   or   other   officer  allowing   unmarked   or   un- 
stamped spirits  to  be  removed  from  warehouse 3300  199 

Proof  gallon — 

Of  spirits,  tax  on 3251  150 

Proof  spirits — 

Adding  substances  to  create  fictitious  proof 3252  154 

Standard  or  definition  of 3249  149 

Tax  on 3251  150 

Property — 

Penalty  for  rescuing  property  seized  by  collector 5446'  416 

Seized  irrepleviable 934  399 

Prosecutions— 

For  fines,  etc 838,  3213,  771      401, 109 

How  to  be  commenced  to  entitle  officer  to  fees  (act  Aug. 

18,  1894) 402 

Protest — 

Against  payment  of  taxes 3220,  notes  114 


INDEX.  491 

Publication —  Section.  Page. 

Notice  of  sale  under  distraint 3190  99 

Notice  of  seizure If  2  3460  364 

Notice  of  sale  of  seizures fl  4  3460  364 

Prunes — 

Brandy  made  from  may  be  exempt  from  certain  provisions.  3255  155 

Punishment — 

Of  persons  violating  internal-revenue   laws,  commissioner 

may  pay  from  appropriation 3463  365 

Public  moneys.     (See  Embezzlement.) 

Accounts  of,  to  be  rendered  monthly,  etc 3622  405 

Application  of  moneys  appropriated 3678  426 

Distinct  accounts  of  disbursement  of,  by  appropriations.  .  .  3623  407 

Neglect  or  refusal  to  deposit,  proceedings 3624  407 

No  expenditure  beyond  appropriations 3679  426 

Not  to  be  paid  as  compensation  to  persons  in  arrears 1766  424 

Officers  forbidden  to  trade  in 1788, 1789  412 

Officers  of  courts  failing  to  deposit 5504  412 

Officers  receiving,  to  pay  gross  amount  into  Treasury 3210  107 

Recovered  as  fines  and  penalties  to  be  paid  to  collectors. . .  3216  111 

To  be  deposited  and  receipted  for 3621  405 

To  be  drawn  for  only  as  required  for  use,  and  how  kept 

where  there  is  no  public  depository 3620  404 

To  be  safely  kept  without  using,  loaning,  or  exchanging.  . .  3639  408 

Public  Printer — 

To    print   forms,    decisions,    and   regulations   for   internal 

revenue 321  45 

Not  to  print  any  matter  except  what  is  necessary  and  author- 
ized by  law  (notes) 196  55 

Public  records — 

Carrying  away  without  authority  and  unlawfully  using 40  419 

Destruction  of 128, 129  418 

Purchase — 

Of  goods  for  United  States  free  of  tax 3464  367 

Of  empty  spirits  packages  with  marks  thereon,  penalty.  . . .  3325  216 

Of  untax-paid  spirits  by  rectifier 3317  210 

Q. 
Qui  tarn — 

Proceedings 3213  109 

Pv. 

Railroad  company — 

Penalty    for    transporting    empty    casks    having    stamps, 

brands,  etc 3324  215 

Railroad  passenger  trains — 

Special  tax  stamp  may  be  issued  for 3233a  126 

Real  estate — 

Collector  may  sell,  in  any  other  district  within  State 3200  104 

Commissioner  to  have  charge  of 3208  106 

Fees  and  charges,  in  seizure  cases 3206  105 

Notice  of  sale  and  other  proceedings 3197,  [3197a],  3198,  3199  101, 

103, 104 

Owner  may  redeem 3201,  3202,  3204       104, 105 

Proceedings  by  bill  in  chancery  to  subject  to  payment  of 

tax 

Record  and  return  of  proceedings  in  sale  of 

Seized  and  sold  for  taxes 

Used  for  ingress  or  egress  to  or  from  illicit  distillery  liable  to 

forfeiture 3281  173 

Reassessment — 

May  be  made  within  15  months 3182  92 

Receipt  of — 

Spirits  by  rectifier,  wholesale,  or  retail  liquor  dealer  in  quan- 
tities greater  than  20  gallons 3319  213 


3207 

105 

3203 

104 

3196 

101 

492 


INDEX. 


Receipts — 

By  collectors,  etc.,  for  all  sums  collected  except  stamps 

In  lieu  of  stamps  prohibited 

Of  designated  depository  to  be  sufficient  voucher  for  col- 
lector   

Officer   accepting   receipt   without   having   paid    amount 
specified  in  receipt 

Officer  paying  sums  less  than  provided  by  law  and  requir- 
ing receipt  for  amount  greater  than  paid 

Separate  to  be  given  in  certain  cases 

Receiving — 

Stolen  property  belonging  to  the  United  States 

Receiving  cisterns.     (See  Cisterns.) 
Records — 

Destroying  or  carrying  away,  etc.,  by  officer  having  cus- 
tody of 

Destroying  or  carrying  away,  etc.,  of  court  or  in  public 
office 

Of  cigar  makers 

Of  cigar  manufacturers  to  be  kept  by  collectors 

Of  distillery  operations,  purchases,  etc.,  of  distiller 

Of  distillery  operations,  storekeeper's  entries 

Of  manufacturers  of  tobacco  and  snuff  to  be  kept  by  col- 
lectors  

Of  sales  of  real  estate  to  be  kept  by  collector,  etc 

Of  special  taxpayers  to  be  kept  in  office  of  collectors 

Recovery  of — 

Denatured  alcohol  prohibited  except  for  redenaturation. . . 

Spirits  used  in  fortification;   permissible  only  on  premises 

of  registered  brandy  distiller 

Rectified  spirits — 

Casks  or  packages  of,  to  be  gauged  and  stamped 

Stamp  for 

Rectifiers — 

Book 

Carrying  on  business  with  intent  to  defraud 

Definition  of H  3 

Notice  of  intention  to  carry  on  or  to  change  business 

Notice  of  intention  to  rectify 

Not  to  purchase  spirits  in  quantities  of  more  than  20  gal- 
lons, except  from,  etc 

Officer,  etc.,  may  break  up  ground  or  walls  to  search  for 
concealed  pipe,  etc 

Penalty  for  doing  business  without  paying  special  tax 

Penalties  for  violating  laws  where  no  specific  penalty  is 
imposed 

Receiving  untax-paid  spirits 

Returns 

Signs  

To  furnish  facilities  for  examination  of  premises 

To  pay  special  tax  and  not  to  carry  on  business  within 

600  feet  from  distillery If  3 

Redemption — 

Of  real  estate  sold  for  taxes 3201.  3204 

Of  stamps (act  May  12,1900)  3426  et  seq. 

Reduction  of  capacity — 

Of  distillery 3311 

Refunding — 

For  stamps  spoiled,  rendered  useless,  etc 3426 

Limitation  of  time  for  presenting  claims  for 3228 

Of  drawback  on  spirits,  etc.     (See  under  Drawback.) 

Of  legacy  taxes  on  religious,   charitable,  and  educational 
bequests,  and  contingent  interests  not  vested  (act  June  27,  ' 
1902) 

Of  tax  on  export  bills  of  lading  and  ships'  manifests 2 

Of  tax  on  foreign  bills  of  exchange (act  Feb.  1,  1909) 

Of  taxes 3220 


Section. 
3183 
3183 

Page. 
94 
94 

3211 

108 

5496 

411 

5483 
3183a 

409 
95 

48 


5408 

5403 
3244 
3389 
3303 
3302 

3357 
3203 
3240 


49 

3320 
3320 

3318 
3317 
3244 
3259 
[3317a] 

3319 

3278 
[3242a] 

3456 
3317 
3317 
3279 
3277 

3244 


419 


418 

418 
278 
280 
200 
200 

259 
104 
129 

240 

232 

213 
213 

211 
210 

134 
158 
210 

213 

171 
131 

361 
210 
210 
172 
171 
i 

134 

104, 105 
331 

206 

331 
122 


318 

340 

.  341 

1  114 


INDEX.  493 

Refunding— Continued.  Section.  Page. 

On  distilled  spirits  destroyed  by  accidental  fire  or  other 
casualty 3221,3223      117,119 

Repayments  to  collector  or  deputy  collector  of  judgments 

recovered 3220  114 

Registration — 

Cigar  makers 3244  278 

Of  death,  removal,  etc.,  of  persons  having  paid  special  tax. .  3241  130 

Of  name,  address,  and  business  of  special-tax  payer 3233  126 

Of  retail  dealer  in  leaf  tobacco 65  261 

Of  stills  and  distilling  apparatus 3258  126 

Of  tobacco  manufacturers,   peddlers,  and  dealers  in   leaf 
tobacco 26  260 

Of  unstamped  instruments  subject  to  tax,  penalty 13, 15      338,  340 

Regulations — 

Commissioner  to  prepare.     (See  under  Commissioner  of 
Internal  Revenue.) 

Force  and  effect  of  law notes  321  46 

President  authorized  to  prescribe 1753      431, 328 

Reimportation — 

Of  goods  manufactured  in  bonded  manufacturing  warehouse.  26  337 

Of  wines  fortified  with  spirits  free  of  tax 47  232 

Reimported — 

Manufactured  tobacco  to  be  held  by  collector  of  customs 

until  internal-revenue  stamps  are  placed  thereon 3385c  276 

Relanding  spirits — 

Which  have  been  shipped  for  exportation 3330  221 

Release — 

Of  distillery 

Of  property  on  bond 

Of  real  estate 

Religious  bequests — 

Refunding  of  legacy  tax  on (act  July  27, 1902) . 

Religious,  charitable,  or  educational  associations — 

Exempt  from  corporation  excise  tax (act  Aug.  5,  1909) 

Remission — 

Of  forfeitures 

Of  internal-revenue  taxes 

Of  taxes  erroneously  or  illegally  assessed 

Of  tax  on  spirits  destroyed  by  casualty 

Removal — 

Case  of,  where  person  has  paid  special  tax 

From  warehouse  not  to  be  permitted,  etc 

Of  spirits  from  distillery  or  rectifying  house  between  sunset 
and  sunrise 

Of  suits,  etc.,  from  State  to  United  States  courts 

Of  tobacco  or  snuff  without  payment  of  tax 

Removing  and  concealing — 

Articles  subject  to  tax,  penalty 

Spirits  on  which  tax  has  not  been  paid 

Renovated  butter — 

Definition (act  May  9,  1902) 

Forfeiture  of,  when  deleterious  to  health 

Manufacturer  of,  special  tax  and  definition 

Manufacturer  of,  to  file  bonds,  notices  of,  inventory,  etc. . . 

Packages  of,  how  marked 

Provisions  of  meat  and  live-stock  inspection  acts  to  be  appli- 
cable to 

Secretary  of  Agriculture  to  make  regulations  governing  man- 
ufacture of 

Secretary  of  Agriculture  to  make  sanitary  inspection  of  fac- 
tories  

Tax  on 

Tax  payable  by  stamps 

Tobacco,  provisions  relative  to  stamps  apply 

Wholesale  dealers  in,  to  keep  books  and  make  returns  as 

required  by  regulations 6  304 


3331 
3459 
3208 

224 
362 
106 

318 

38 

321 

3461 
3220 
3220 
3221 

364 
114 
114 

117 

3241 
3300 

130 
199 

3327 

643 

3372 

216 

386 
269 

3450 
3296 

357 
197 

4 

5 
4 
4 
5 

300 
303 
143 
301 
303 

5 

304 

5 

303 

5 

4 
4 
4 

304 
302 
302 
302 

494  INDEX. 

Renovated  butter — Continued.  Section.  Page. 

Penalties — 

For  engaging  in  business  as  manufacturer  of,  without  pay- 
ment of  special  tax 3242c  132 

For  failure  to  mark  and  brand  as  required  by  law 5  303 

Wholesale  dealers  failing  to  keep  books  and  make  returns. .  6  304 

Reopening  of  accounts notes  236  423 

Repayment — 

To  collectors  and  other  officers  of  money  recovered  in  suits.  3220  114 

Repeal — 

Provisions  relative  to  acts  of 31 

Reports.     (See  Returns.) 

Annual  report  of  commissioner 55 

Annual  report  of  head  of  department 196  55 

By  officers  of  violation  of  law 3169  81 

By  United  States  attorney 838  401 

Collectors  to  United  States  attorney 3164  77 

Failing  to  make  reports 3147, 1780        63, 412 

Monthly  reports  on  condition  of  business 55 

Rescuing — 

Prisoners 5401  415 

Property,  etc.,  seized  by  internal-revenue  officers 3177.  5446        90,  416 

Restamping — 

Of  distilled  spirits,  tobacco,  snuff,  cigars,  cigarettes,  fer- 
mented liquors,  etc.,  when  stamps  have  been  lost  or  de- 
stroyed   3315  209 

Restoration — 

Of  property  seized  under  distraint  on  payment,  etc 3192  99 

Restoring  stamps — 

Prima  facie  evidence  of  reuse,  penalty 3429  332 

Restraining — 

Suits  to  prevent  collection,  etc.,  of  revenue  tax  not  allowed  3224  120 

Resumption  of  work — 

At  distilleries 3310  206 

Retail  dealers — 

In  adulterated  butter (act  May  9,  1902)  4      143,  301 

In  filled  cheese 144,  306 

In  liquors 14  3244  136 

In  liquors,  not  liable  as  wholesale  liquor  dealers  for  closing 

out  business 1f5  3244  140 

In  liquors,    penalty    for    doing    business    without    paying 

special  tax [3242a]  131 

In  malt  liquors,  definition  and  special  tax fl  5  3244  139 

In  malt  liquors,  penalty  for  doing  business  without  payment 

of  special  tax [3242a]  131 

In  oleomargarine,  penalty  for  doing  business  without  pay- 
ment of  special  tax [32426]  131 

In  oleomargarine,  special  tax  of (act  Aug.  2,  1886)  3  142 

Not  to  purchase  in  quantities  of  more  than  20  gallons  except 
from  a  rectifier,  wholesale  dealer,  or  distiller,  except,  etc. .  3244,  3319      140,  213 

Retail  dealer  in  leaf  tobacco — 

Definition  of 35  261 

May  sell  natural  leaf  tobacco,  except  to  named  persons,  with- 
out payment  of  tax 35  261 

To  furnish  abstracts  of  sales ;  penalty 35  262 

To  keep  daily  record  of  purchases  and  sales 35  262 

To  register  name,  etc.,  with  collector;  penalty 35  262 

Retiring  partner — 

Retail  liquor  dealer  not  liable  as  wholesale  liquor  dealer  for 
sale  of  interest If  5  3244  140 

Returns — 

Banks,  etc 3414  351 

Brewers' 3337  244 

Cigar  manufacturers' 3390  280 

Collector  or  deputy  may  make  returns,  when 3173,  3176  86,  89 

Daily  and  monthly,  by  storekeeper 3301  199 

Daily,  by  gauger 3291,  3314      181, 208 


•ction. 

Page. 

3309 

202,  208 

3176 

89 

3176 

89 

3179 

91 

4 

301 

5 

294 

3176 

89 

3185 

96 

38 

322 

3233 

86, 126 

3314 

208 

3179 

91 

3173 

86 

3317 

210 

3358 

259 

3173 

86 

INDEX.  495 

Returns — Continued . 

Distillers' 3307,  3309 

Failure  or  neglect  to  make 

False  or  fraudulent,  penalty,  100  per  cent 

Making  false  or  fraudulent,  with  intent  to  defeat  or  evade 
assessment;  penalty 

Manufacturers    of   adulterated    butter   or   renovated    but- 
ter  (act  May  9,  1902) 

Manufacturers  of  oleomargarine 

May  allow  further  time  in  case  of  absence  or  sickness 

Monthly  and  special 

Of  corporations  for  special  excise  tax 

Of  special  taxes 3173,  3233 

Of  stamps  for  spirits  by  collector  of  internal  revenue 

Penalty  for  delivering  or  disclosing  to  collector  any  false  or 
fraudulent 

Persons  neglecting  to  make,  or  making  false  and  fraudulent. . 

Rectifiers' 

Tobacco  and  snuff  manufacturers' 

To  be  made  by  all  persons  liable  to  tax 

Wholesale  dealers  in  oleomargarine,  adulterated  or  renovated 

butter 6  304 

Revenue  agents.     (See  Internal-revenue  agents.) 
Revenue  officers.      (See  Officers.) 

Falsely  assuming  to  be,  and  in  such  character  demanding 

money,  etc 5448,  5448a  416 

Rewards — 

For  information 3463  366 

Officer  accepting  illegal  for  performance  of  duty 3169  81 

Robbery — 

Of  property  belonging  to  the  United  States 5456  419 

Rule  IX 391 

Rum — 

May  be  withdrawn  for  denaturation 1  241 

S. 

Saccharometers — 

To  be  prescribed 3249  149 

Salary.     (See  Compensation.) 
Sales — 

By  dealers  in  leaf  tobacco 3244  260 

By  tobacco  peddlers 3381  272 

Of  cigars  at  retail 3392  281 

Of  distilled  spirits  by  order  of  court  or  under  process  of 
distraint  to  be  subject  to  tax 3334  226 

Of  forfeited  boilers,  still,   machinery,   materials,   etc.,   at 
public  auction 3450  358 

Of  goods,  etc.,  to  avoid  tax  due  on  same 3454  360 

Of  goods  seized  not  over  $500  in  value 3460  363 

Of  leaf  tobacco  by  farmers 27,  35      257,  261 

Of  liquors  may  be  made  under  certain  circumstances  with- 
out liability  to  special  tax If  5  3244  136 

Of  merchandise  not  transferred  from  unsafe  or  unfit  ware- 
house as  required 3272  169 

Of  property  distrained  for  taxes 3190,  3197        99, 101 

Of  property  forfeited,  found  in  possession  in  fraud  of  revenue 
laws 3459  362 

Of  real  estate  for  taxes 3196,  3205      101, 105 

Of  real  or  personal  property  under  decree  of  court  where*and 
how  to  be  made 3197a  257 

Of  stamped  containers,  etc 3455  360 

Of  tobacco  and  snuff 3363  264 

Of  tobacco,  snuff,  and  cigars  under  distraint  or  by  order 
of  court  or  of  any  Government  officer 3369  267 

Of  whisky,  tobacco,  etc.,  under  distraint,  to  be  branded, 
stamped,  and  marked 3458  362 


496  INDEX. 

Saleratus —  Section.             Page. 

May  be  manufactured  where  spirits  are  distilled 32(i(i              166 

Schedule  of  articles  and  occupations  subject  to  tax 33 

Scientific  institutions — 

May  withdraw  alcohol  from  bond  for  scientific   purposes  • 

without  payment  of  tax 3297,  [3297a]       197,  198 

Scraps  of  tobacco — 

May  be  imported  and  removed  directly  to  manufactory 

without  payment  of  tax 3377              270 

May  be  sold  in  bulk  without  payment  of  tax 3362              263 

Seals  for  locks — 

Commissioner  may  require,  to  be  put  on  stills,  etc 3270              168 

Penalty  for  destroying,  breaking,  tampering  with,  etc 3268              167 

To  be  provided  at  expense  of  the  United  States 3267              167 

Search — 

For  pipes  underground 3278              171 

Search  warrant — 

May  be  issued  to  officers 3462             365 

Secretary  of  Agriculture — 

To  ascertain  whether  deleterious  materials  are  used  in  the 

manufacture  of  renovated  butter (act  May  9,  1902)  5              303 

To  cause  sanitary  inspection  of  renovated  butter  factories  to 

be  made 5              303 

To  make  regulations  governing  manufacture  of  renovated 

butter 5              303 

Secretary  of  the  Treasury — 

Authorized  to  abate  or  refund  taxes  on  spirits  destroyed 

by  fire  or  other  casualty 3221              117 

Authorized  to  compromise  claims  and  judgments 3469              399 

Authorized  to  make  allowances  for  pay  of  deputy  collectors.  [3148]                63 

Authorized  to  make  allowance  to  collectors,  for  salary,  etc.  [3148]                63 
Authorized  to  make  to  deputy  acting  as  collector  during 

vacancy  same  allowance  as  to  collector 3150                67 

Authorized  to  permit  free  withdrawal  of  alcohol  by  scientific 

institutions  and  colleges  under  certain  conditions 3297              197 

Authorized  to  remit  forfeitures 3461              364 

Bonds  to  be  filed  with 62 

Consent  of,  necessary  in  compromise  cases 3229              123 

May  appoint  an  officer  to  superintend  exportation  and  draw- 
back   3161                75 

May  designate  collector  to  have  charge  of  exportation 3161                75 

May  designate  depositories  for  internal-revenue  collections.  3211,  3620      108,  404 

May  direct  renewal,  etc.,  of  collector's  bond 3143                59 

May  direct  which  deputy  collector  shall  perform  duties  in 

case  of  disability,  etc.,  of  collector 3149                66 

May  impose  the  duties  of  storekeeper  and  gauger  upon  one 

officer [3153a]                69 

Permission  of,  required  to  discontinue  certain  prosecutions.  3230              124 

To  approve  collector's  bond  as  disbursing  agent 3144                62 

To  appoint  gaugers 3156                72 

To  appoint  storekeepers 3153                69 

To  approve  sales  by  commissioner  of  real  estate 3208              106 

To  lay  annually  before  Congress,  in  December,  an  abstract 

of  moneys  received  from  the  several  sources  of  revenue 261                55 

To  make  allowances  for  temporary  services  under  war- 
revenue  act 53 

To  prescribe  duties  of  deputy  commissioner 323                48 

To  prescribe  regulations  relative  to  drawbacks 25              336 

Regulations  to  be  prepared  under  the  direction  of  the 45 

Senate — 

Collectors  to  be  confirmed  by 3142               59 

Commissioner  to  be  confirmed  by 319                45 

Solicitor  to  be  confirmed  by 349                48 

Seized  property  irrepleviable 934              399 

Seizure — 

By  unofficial  person (notes)  3166               79 

Commissioner  may  authorize  any  internal-revenue  officer 

to  make 3166               79 


INDEX.  497 

Seizure-Continued,  Se<*™-  Pa& 

Fees  and  charges  m  case  of 3206  105 

Goods  of  value  of  $500  or  less,  proceedings  on 3460  363 

Of  goods  by  sheriff -  -  -  •  • :  -  -  -  -  - (notes)  3271  168 

Of  merchandise  not  transferred  as  required  from  unsafe  or 

unfit  warehouse 3272  169 

Of  real  estate ----. ■•••••;•• 3196-3205      101,105 

Taxable  articles  held  with  intent  to  defraud  the  revenue, 

e£C        -. 3453  359 

Set-off— 

Any  debt  due  the  United  States  to  be  deducted  from  any 

judgment  recovered  or  allowed  claim 424 

No  salary  to  be  paid  to  debtors  of  United  States  until  they 

account  for  and  pay  over  to  Treasury 1 766  424 

Suits  of  United  States  against  individuals,   what  credits 

allowed .    951  424 

Shares — 

Cigars  manufactured  on  commission  or 3399  287 

Tobacco  and  snuff  manufactured  on  commission  or 3370  263 

Sheriff- 
Sale  of  spirits  by II  5  3244  140 

Shifting  spirits,  etc 3326  216 

Shipment  of  liquors- 
Collection  of  purchase  price  in  connection  with  delivery 

prohibited  in  interstate  commerce 239  421 

In  interstate  commerce  marks  to  be  placed  on  packages 240  422 

Not  to  be  delivered  to  any  other  than  the  bona  fide  con- 
signee    238  421 

Under  name  as  known  to  the  trade 3449  356 

Shorts  (fine  cut) — 

May  be  sold  in  bulk  as  material  without  payment  of  tax.. .  3362  263 
Sickness  of — 

Collector 3149  66 

Employees,  leave  on  account  of (act  Mar.  15,  1898) 51 

Persons  required  to  make  return 3176,  3237        89-127 

Storekeeper 3155  72 

Signs  by- 
Cigar  manufacturers 3388  280 

Distillers,  rectifiers,  and  wholesale  liquor  dealers 3279  172 

Manufacturers  of  adulterated  or  renovated  butter  (act  May 

9,1902) 4  300 

Manufacturers  of  oleomargarine 5  294 

Manufacturer  of  tobacco  and  snuff 3356  259 

Peddlers  of  tobacco 3382  272 

Six  hundred  feet — 

Commissioner  may  allow  a  less  distance  in  case  of  vinegar 

factory 3282  176 

In  a  direct  line,  distilling  and  rectifying  not  to  be  carried 

on  within  such  distance  of  each  other \  3.  .3244,  3266,  3280  135, 

166,  173 
Vinegar  factory  not  to  be  within  such  distance  of  distillery 

or  rectifying  house 3282  176 

Size — 

Of  tobacco  and  snuff  packages 3362  263 

Snuff- 
Additional  tax  on,  stock  on  hand [3368a]  277 

Affixing  false  stamps 3375  270 

Assessment  of  tax  when  sold  without  stamps 3371  268 

Drawbackon 3386  276 

Exportation  of 385  273 

Imported,  to  pay  additional  internal-revenue  tax  by  stamp.  3377  270 
Packages  of,  not  to  contain  any  lottery  ticket  or  indecent 

picture 3394  284 

Penalties  for  purchasing,  etc.,  when  not  stamped,  or  tax  on 

not  paid 3366,3367      264-265 

Removing  packages  without  being  stamped,  etc 3374  269 

Size  of  packages 3362, 3364      263-264 

72170°— 11 32 


3376 
3373 
3369 

270 
269 
267 

3370 
3372 
3368 

268 
269 
265 

349 
3229 

48 
123 

3469 
3143 
3625 
3633 

399 

59 

112, 408 

408 

498  INDEX. 

Snuff— Continued.  Section.  Page. 
Stamped  portion  of  packages  of,  when  empty,  to  be  de- 
stroyed  

Stamps,  absence  of,  to  be  notice  that  tax  is  not  paid 

Stamps  for  payment  of  tax  on 

Stamps,  how  affixed  on  manufactures  by  one  person  for 

another  or  on  shares 

Stamps,  removing  or  selling  without 

Tax  on 

Solicitor  of  Internal  Revenue — 

Appointment  of 

Opinion,  etc.,  of,  in  compromise  cases 

Solicitor  of  Treasury — 

Duty  of,  in  compromise  of  claims  of  United  States 

To  approve  sureties  on  collectors'  bonds 

To  issue  warrant  of  distress  against  delinquent  collector. . . .   3217, 

To  proceed  against  delinquent  disbursing  officers 

Sorghum  sugar — 

Withdrawal  of  spirits  free  of  tax  for  use  in  manufacture  of.         [3251c]  154 

Sour  mash — 

Distilleries,  how  capacity  to  be  estimated 3264  164 

Sparkling  wine — 

Tax  on  imitations  of 3328  217 

Special  bonded  warehouses.     (Act  Mar.  3,  1877). 

Conditions  of  warehousing  bond 

For  brandy  made  from  apples,  peaches,  or  grapes 

Blow  brandy  may  be  deposited  in 

In  charge  of  storekeeper 

In  joint  custody  of  storekeeper  and  proprietor 

Regulations  for,  to  be  prescribed  by  Commissioner  of  Inter- 
nal Revenue  with  approval  of  Secretary 

Removal  of  brandy  to 

Stamp  to  be  affixed  before  removal 

Special  taxes — 
Brewers — 

Annual  manufacture  less  than  500  barrels If  1 

Annual  manufacture  500  barrels  or  more f  1 

Butter — 

Manufacturers  of  adulterated  butter,  .(act  May  9,  1902). 
Manufacturers  of  process  or  renovated  butter  (act  May  9, 

1902) 

Dealers  in  adulterated — 

Retail (act  May  9, 1902) 

Wholesale (act  May  9,  1902). 

Filled  cheese — 
Dealers  in — 

Retail (act  June  6,  1896). 

Wholesale (act  June  6,  1896). 

Manufacturers  of (act  June  6,  1896). 

Liquor  dealers — 

Retail If  3 

Wholesale ' |  3 

Malt  liquor  dealers — 

Retail |  4 

Wholesale If  4 

Manufacturers  of  stills If  2 

And  for  stills  or  worms  manufactured,  each if  2 

Mixed  flour — 

Manufacturers,  packers  or  repackers  of 

Oleomargarine — 

Manufacturers  of (act  Aug.  2,  1886) 

Retail  dealers  in (act  Aug.  2,  1886). 

Wholesale  dealers  in (act  Aug.  2,  1886). 

Iteeliliers- 

Of  500  barrels  or  more  a  year fl  3 

Of  less  than  500  barrels  a  year f  3 


4 
1-11   192 
4 
1 
1 

193 
-195 
193 
192 
192 

1 
2 
3 

192 
192 
193 

3244 
3244 

133 
133 

143 

143 

143 
143 

144 

144 

144 

3244 
3244 

136 
136 

3244 
3244 
3244 
3244 

139 
140 
133 
133 

36 

145 

>       3 

141 
142 

'  .  .        .... 

142 

3244 
;     3244 

134 
134 

INDEX.  499 

Special  taxes— Continued.  Section.  Page. 
Miscellaneous — 
Administrator  or  executor,  none  required  from  for  sale  of 

liquors  belonging  to  estate If  5  3244  140 

Alphabetical  list  of  persons  paying,  to  be  kept  in  office  of 

collector 3240  129 

Apothecaries  as  to  spirits  used  in  medicines,  none  on 3246  145 

Business  not  to  be  carried  on  except  in  places  described  in 

register 3235  126 

Carrying  on  business  without  payment  of 3242a  b  c      131, 132 

Cases  of  death,  removal,  etc.,  of  persons  having  paid 3241  130 

Copartnership  to  pay  but  one 3234  126 

Debts,  liquors  taken  for,  none  for  sale  of If  5  3244  140 

Deputy  collectors  to  visit  districts  and  make  lists  of  per- 
sons liable  to 3172  86 

Distiller  who  has  given  required  bond  not  required  to  pay  fl  4  3244  136 
Does  not  exempt  from  penalty  under  State  laws  nor  prevent 

State  from  taxing 3243  132 

Due  July  1,  each  year,  and  how  computed 3237  127 

May  be  paid  for  passengers,  trains,  and  steamboats 3233a  126 

Names,  etc.,  of  persons  liable  to,  to  be  registered  and  re- 
turned   3233  126 

Persons  liable  for,  may  be  summoned  in  case  of  neglect 3174,  3175  88 

Persons  liable  for,  to  make  return  annually 3173  86 

Persons  liable  to,  not  to  carry  on  business  until  payment  of. .  3232  125 
Return  for,  to  be  made  within  calendar  month  within  which 

liability  commenced 3237  127 

Sheriffs,  etc.,  sale  by,  none  on fi  5  3244  140 

Special  excise  tax  of  corporations 38  320 

Stamps  for 3238  128 

Stamps  evidencing  payment  of,  to  be  conspicuously  posted . .  3239  128 

Table  of  certain  special  taxes  and  50  per  cent  penalties 35,  36 

Vintners  who  sell  wine  of  own  growth,  none  on 3246  145 

Where  more  than  one  pursuit  is  carried  on  in  same  place  by 

same  person  at  same  time 3236  127 

Penalties — 

Brewers  carrying  on  business  without  payment  of  special 

tax 3242  131 

Fifty  per  cent  penalty  for  failing  to  make  return 3176  89 

Fifty  per  cent  penalty  table 36 

Manufacturers  of  renovated  or  adulterated  butter,  and  deal- 
ers in  adulterated  butter 3242c  132 

Manufacturers  of  and  dealers  in  filled  cheese 3  144 

Manufacturers  of  and   dealers  in   oleomargarine   carrying 

on  business  without  payment  of  special  tax [32426]  131 

Packers  and  repackers  of  mixed  flour 36  145 

Penalty  for  not  keeping  stamps  conspicuously  in  place  of 

business 3239  128 

Rectifier,  dealer,  etc.,  in  liquors,  manufacturer  of  stills, 

carrying  on  business  without  payment  of  special  tax [3242a]  131 

Spirits.    (See  Distilled  spirits.) 
btamps — 

Absence  of,  evidence  of  nonpayment  of  tax.     (See  Absence.) 

Affixing  and  protecting  stamps 3322  214 

Allowance  for  stamps  spoiled 3426  331 

Commissioner  may  change  form,  etc 3445,  3446  355 

For  imitation  wines 3328  217 

For  opium 38  290 

For  rectified  spirits 3320  213 

For  spirits  exported 3330  220 

For  wholesale  liquor  dealers'  packages 3323  214 

How  such  may  be  subsequently  attached Sec  .13 338 

Imported  liquor  stamps 11  227 

Imported  spirit  stamps  for  packages  of  wholesale  liquor 

dealer 11  227 

Lost  or  destroyed  by  accident 3315  209 


500  INDEX. 

Stamps— Continued.  Section.              Page. 
May  be  furnished  free  to  collectors    for    stamping    tobacco 

or  cigars,  abandoned,  forfeited,  etc 3369  267 

Not  to  be  issued  till  paid  for  in  full 3169a  82 

Obligations  of  United  States  held  to  mean  stamps 5413  420 

On  filled  cheese 9  307 

On  mixed  flour 40  312 

On  oleomargarine - 8  296 

On  oleomargarine,  provisions  of  law  as  to  issue,  sale,  etc 8  296 

On  playing  cards 39  343 

On  renovated  or  adulterated  butter (act  May  9,  1902)  4  292 

Penalty  for  counterfeiting  stamps 3328,  3346,  3429,  5414      217,  252 

332, 420 
Penalty  for  receiving,  selling,  and  doing  other  forbidden 

acts  relating  to  empty  stamped  packages 3455  360 

Receipt  in  lieu  of,  prohibited 3183  94 

Rewarehousing  stamp  for  fruit  brandy 5  193 

Special  bonded  warehouse  for  fruit  brandy 3  193 

Tax  on  stills  and  worms  to  be  paid  by 3238  128 

To  be  destroyed  before  sale  of  forfeited  spirits 3334  226 

To  be  effaced,  etc.,  at  time  of  emptying  casks,  etc 3324  215 

To  be  effaced  from  empty  packages 3324,  3376,  3406     215,  270, 

289 

To  be  transmitted  to  collectors  by  registered  mail [3446a]  355 

When  penalty  may  be  remitted  for  failure  to  attach 13  338 

Stamps  for  special  taxes  (see  Special  taxes) 3238  128 

Commissioner  to  procure 3238  128 

To  be  kept  conspicuously  in  place  of  business 3239  128 

Stamps  for  distilled  spirits — 

Accountability  of  collector  for  books  of 3314  208 

Bottled  in  bond 1  235 

Coupons  on  stamps  unused 3313  207 

Export 3330  220 

How  to  be  engraved  and  issued 3312  207 

How  used  by  collector 3313  207 

Not  to  be  imitated  in  any  manner 3316a  209 

Warehouse  and  tax-paid 3287,  3295       178, 196 

Stamps  on  fermented  liquors 3341  249 

Mode  of  affixing  and  canceling 3342  250 

To  be  obtained  by  brewer  from  collector 3342  250 

Stamps  on  tobacco  and  snuff 3368  265 

For  export 3385  273 

Imported,  by  whom  to  be  affixed 3377  270 

Manufactured  on  commission  or  shares,  by  whom  to  be 

affixed 3370  268 

To  be  prepared  by  Commissioner  and  sold  by  collectors ....  3369  267 

Stamps  on  cigars  and  cigarettes 3394  282 

To  be  affixed  by  actual  maker  where  material  is  furnished 

by  one  party  and  manufactured  by  another 3399  287 

To  be  affixed  to  imported  cigars 3402  287 

To  be  prepared  by  commissioner  and  sold  by  collectors. . .  3395  285 

State — 

Includes  Territories  and  District  of  Columbia 3140  58 

State  courts — 

Removal  of  suits  from 643  386 

State  laws — 

Payment  of  special  tax  does  not  exempt  from  penalty  or 

taxation  under 3243  132 

Relative  to  oleomargarine  etc.,  applicable  on  arrival  when 

shipped  in  interstate  commerce (act  May  9,  1902) 293 

Rules  of  decision  in  trials,  etc 721,  858,  914,  916  392, 

389,  393 

Statement — 

Of  assets  and  liabilities  to  be  filed  by  surety  companies 3,4  369 

Stationery — 

For  collectors [3148]  65 

Statute  of  limitations.     (See  Limitations.) 


INDEX.  501 

Steamboats—  Section.  Page. 
Engaged  in  the  business  of  carrying  passengers,   special 

tax  stamp  may  be  issued  for 3233a  126 

Stills- 
Arrest  of  persons  while  operating  illicit [3281a]  175 

Distillers  who  make  wooden,  for  own  use  not  liable 3244  133 

Drawback  on,  allowed 3244  134 

Fastenings,  locks,  and  seals  required 3270  168 

Manufacturer  of,  to  pay  special  tax fl  2  3244  133 

Notice  to  be  given  before  removal  from  place  of  manufacture  3265  165 

Not  to  be  set  up  without  permit  from  collector 3265  165 

Not  to  be  used  for  distilling  on  certain  premises 3266  166 

Penalty  for  carrying  on  business  without  paying  special  tax. .  [3242a]  131 
Possession  of  bv  wholesale  or  retail  liquor  dealer  constitutes 

him  rectifier'. \  3  3244  134 

Space  around  wood  still 3269  168 

Tax  on 3244  133 

Tax  on,  to  be  paid  by  stamps 3238  128 

To  be  destroyed  and  material  sold  in  certain  cases  of  for- 
feiture   3332  224 

To  be  registered 3258  157 

Storage — 

Spirits  on  which  tax  has  been  paid  not  to  be  stored  on  dis- 
tillery premises 3288  180 

Storekeepers — 

Annual  leave  of [3157a7]  74 

Appointment,  salary,  oath,  bond 3153  69 

Commissioner  mav  assign  to  dutv  in  other  districts [3154a]  72 

Compensation  of 3153,  [3153a]  69 

Compensation  of,  at  small  distillery (act  Feb.  24,  1911) 

[3153c,  3153a7]  70-71 
Duties  of  storekeeper  and  guager  may  be  imposed  on  one 

officer [3153a]  69 

May  be  suspended  by  Commissioner [3163a]  76 

May  be  transferred  bv  Commissioner 3154,  3163  71,  76 

No  material  for  distilling  or  spirits  removed  in  absence  of. .  3284  177 

Not  to  be  engaged  in  other  business  without  permission 3153  69 

Only  to  be  paid  when  rendering  actual  service 3153  69 

Penalties  for  unlawfully  removing,  or  permitting  to  be  re- 
moved, spirits  from  warehouse  by 3300  199 

Spirits  to  be  drawn  from  receiving  cisterns  in  presence  of. .  3267  167 

Temporary,  may  be  designated  by  collector 3155  72 

To  have  charge  of  distillery 3273  1 70 

To  have  charge  of  warehouse 3271  168 

To  have  supervision  of  bottling  spirits  in  bond 1  234 

To  keep  record  of  distillery  operations 3302  199 

To  keep  warehouse  book  and  make  returns 3301  199 

To  receive  per  diem  compensation  when  traveling  to  assign- 
ment   [3154a]  71 

To  sign  tax-paid  stamp 3295  196 

To  sign  warehouse  stamp 3293  178 

Warehouse  stamp  to  be  placed  on  spirits  in  presence  of 3287  178 

Storekeeper-gaugers — 

Annual  leave  of [3157a7]  74 

Commissioner  may  assign  to  duty  in  other  districts [3154a]  71 

Officer  holding  combined  office  of  storekeeper  and  gauger 

to  be  known  as [3153a7]  71 

To  receive  per  diem  compensation  when  traveling  to  assign- 
ment.   [3154a]  71 

When  assigned  as  gauger  only,  to  receive  compensation  as 

gauger.. [3153a7]  71 

When  assigned  as  storekeeper-ganger  or  as  storekeeper  only 

to  receive  compensation  of  storekeeper  only [3153a7]  71 

Stubs — 

Of  stamps  for  distilled  spirits 3314  208 

Subpoenas — 

Against  collectors notes  882  391 

For  witnesses  touching  claims 184  423 


Section. 
43 

Page. 
229 

771 
3624 

401 
407 

643 
es  236 

386 
423 

3213 

109 

3215 
3229 
3231 

111 
123 

124 

502  INDEX. 

Sugar- 
Addition  of,  to  sweet  wine  intended  for  fortification 

Suits — 

Against  collectors  or  other  officers  for  acts  done,  United 
States  attorney  to  appear  for 

Against  collectors  on  their  bonds 

Against  internal-revenue  officers  in  State  court  may  be 
removed  to  United  States  circuit  court 

Against  United  States notes 

Collectors  to  prosecute  for  fines,  penalties,  and  forfeitures  in 
name  of  the  United  States 

Commissioner  authorized  to  establish  rules  and  regulations 
relative  to 

Compromise  of 

Continuance  of 

For  balances  due  from  persons  accountable  for  public 
money 3624  407 

For  recovery  of  alleged  illegal  taxes  not  to  be  maintained 

until  appeal  is  made  to  commissioner 3226  121 

For  restraining  the  assessing  and  collecting  of  taxes  not  to  be 
maintained: 3224  120 

For  taxes  and  penalties  to  be  brought  in  name  of  United 
States 919,  3213       109,385 

Internal -re  venue  officer,  etc.,  may  sue  for  damages  in  circuit 
court  for  injury  to  person  or  property  received  for  any  act 
done  in  the  discharge  of  his  duty 3171  83 

Jurisdiction  of  circuit  and  district  courts  in  internal- 
revenue  cases 563,  629,  711,  732,  733,  3213     383,  384, 

385, 109 

Limitation  of  time.     (See  Limitations) 3227,  3228  122 

Money  recovered  on,  to  be  paid  into  the  Treasury 3216  111 

Not  to  be  bought  without  sanction  of  commissioner 3214  111 

On  deputy  collectors'  bonds [3148]  64 

To  recover  taxes  collected  under  second  assessment,  burden 
of  proof 3225  120 

When  United  States  not  subject  to  costs 969,  3214      392,  111 

Summons — 

Authority  to  issue,  transferred  from  supervisor  to  collector. .        [3163a]  77 

By  collector,  where  person  liable  to  make  return  is  delin- 
quent   3173-3175  87,  88 

For  production  of  books,  how  served 3174  87 

Failure  to  produce  books  or  appear,  penalty 3179  91 

Sunday — 

Processes  in  distilling  not  to  be  carried  on  during 3283  177 

Superintendent  of  export  and  drawback — 

Appointment  and  compensation  of 3161  75 

Authority  to  administer  oaths,  etc 3162  75 

Supplies — 

For  the  use  of  the  United  States  may  be  purchased  free  of 
internal-revenue  tax 3464  367 

Privilege  of  purchasing  from  public  warehouses  and  bonded 

warehouses  extended  to  certain  vessels  of  war 2982  367 

Supreme  Court  decisions 11  to  15 

Sureties — 

Liabilities  of notes  3260a 

On  collectors'  bonds  to  be  approved  by  Solicitor  of  Treasury. 

On  official  bonds  to  be  notified  of  default  of  principal 

Surety  companies.     (Act  of  Aug.  13,  1894.) 

Failure  to  comply  with  provisions  of  act;  penalty 

Forfeiture  of  right  to  do  business,  on  failure  to  pay  judg- 
ment   

May  act  as  sole  surety  on  bonds 

Notice  to  be  given  company  of  execution  of  process  upon 
agent 


Not  to  do  business  except  where  power  of  attorney,  etc.,  is 
filed 

Not  to  deny  corporate  power  to  assume  liability 

Power  of,  to  act  as  sureties  to  be  revoked  if  insolvent 


3260a 
3143 
2 

161 

60 

372 

8 

370 

6 
1 

370 

368 

2 

369 

2 

7 
4 

368 
370 
364 

INDEX.  503 

Surety  companies — Continued.  Section.  Page. 

Premiums  for  execution  of  official  bonds,  (act  of  Aug.  5, 1909) 372 

Suit  against,  jurisdiction  of 5  3G9 

To  file  copy  of  charter  with  secretary 3  369 

To  file  statement  of  assets  and  liabilities 3-4  369 

Survey — 

Of  distillery,  how  made 3264  164 

When  to  take  effect 3264  165 

Suspension — 

Of  collector  of  internal  revenue  and  other  officers  by  com- 
missioner   T3163a]  77 

Of  work  at  distillery 3310  205 


Table  of  articles  and  occupations  subject  to  tax 33 

Table  of  sections 41 

Table  of  special  taxes  and  50  per  cent  penalties 36 

Tanks,  distillery 4  241 

Tanks,  metal,  and  tank  cars — 

For  shipment  of  spirits  withdrawn  for  use  of  United  States. .  3287  179 

For  storage  and  transportation  of  denatured  alcohol 3  241 

Taxes — 

Collectors  and  their  deputies  to  collect,  and  to  give  receipts.  3183  94 

Deficiencies  on  distilled  spirits,  how  determined 3309  203 

Gross  amount  of  collections  to  be  paid  into  Treasury  daily. .  3210  108 

How  collected  by  distraint.     (See  Distraint.) 

In  absence  of  provisions  for  modes  and  time  of  assessing  and 

collecting,  mode  of  procedure 3447  355 

Lien  for,  and  how  to  be  enforced 3186,  3188  97,  98 

Limitation  of  time  for  bringing  suits  for  the  refunding  of 

taxes 3227  122 

Lists  of  uncollected,  to  be  transmitted  to  successor 3219  113 

Monthly  and  special  returns,  when  to  be  made 3185  96 

1  Notice  of,  by  collector  or  deputy 3184  95 

;  Not  paid  by  stamp,  assessment  to  be  made 3437  337 

Persons  liable  for,  to  make  return 3173  86 

Proceedings  in  chancery  to  subject  real  estate  to  payment  of 

taxes  assessed 3207  105 

Remission  and  refunding  of,  when  erroneously  or  illegally 

|     assessed 3220  114 

On— 
v  Adulterated  butter (act  May  9,  1902) 

Bay  rum  or  alcoholic  articles  from  Porto  Rico 

Cigars  and  cigarettes 

Circulation  of  banks 

Deficiencies  in  production  of  spirits 

Distilled  spirits 3251,  3251a 

Fermented  liquors 

Filled  cheese 

Imitation  wines  or  compound  liquors 

Mixed  flour (act  June  13,  1898) 

Notes  used  for  circulation  and  paid  out 3412,  3413 

Oleomargarine (act  Aug.  2,  1886) 

Opium 

Playing  cards 

Renovated  butter (act  May  9,  1902) 

Snuff 

Spirits  produced  and  not  accounted  for 

Spirits  which  excess  of  material  used  should  have  produced 
under  survey 

Stills  manufactured \  2 

Tobacco 

Wine  spirits  when  used  in  fortification  of  sweet  wine  (act 

'     June  7,  1906) 

Special  excise  tax  on  corporations 

Special,  on  dealers,  etc.     (See  Special  tax.) 


4 

300 

32516 

152 

3394 

282 

3408 

348 

3309 

203 

3251a 

150, 151 

3339 

246 

6 

306 

3328 

217 

40 

312 

:,  3413 

349, 350 

8 

295 

36 

290 

38 

243 

4 

302 

3368 

265 

3253 

155 

3309 

203 

3244 

133 

3368 

265 

43 

229 

38 

320 

Section. 

Page. 

3214 

Ill 

3224 

120 

919 

385 

3218 

113 

3174 

88 

42 

229 

3285 

177 

3182 

92 

3184 

95 

3447 

355 

3293 

182 

3185 

96 

3267 

167 

3283 

177 

504  INDEX. 

Taxes — Continued. 

Suits  for,  not  to  be  brought  without  sanction  of  commissioner . . 
Suits  for  restraining  assessment  or  collection  of,  forbidden. . 

Suits  for,  to  be  brought  in  name  of  United  States 

Uncollected,  to  be  credited  to  collector  in  certain  cases 

United  States  may  purchase  certain  articles  without  pay- 
ment of  tax 3464  367 

Where  and  how,  may  be  sued  for 732,  733,  3213      385, 109 

When  real  estate  may  be  sold  for 3196  101 

Telegrams — 

Government  has  priority  in  transmission  of,   over  certain 

lines 5266  430 

Ten  gallons — 

Spirits  drawn  from  receiving  cisterns  to  be  in  casks  of  not 

less  capacity  than 3287  178 

Spirits  not  to  be  removed  in  packages  of  more  than,  before 

sunrising  and  after  sunsetting 3327  216 

Time — 

Additional  for  making  return  in  case  of  absence  or  sickness . .  3176  89 

Allowed  for  compliance  with  summons  to  produce  books  or 

testify 

During  which  sweet  wine  may  be  fortified 

For  refilling  of  fermenting  tubs 

In  which  incomplete  or  incorrect  lists  may  be  corrected 

Limit  within  which  taxes  must  be  paid 

Of  assessing  or  collecting  tax  not  provided  for  by  law  may 

be  established  by  regulation 

Of  withdrawal  of  spirits  from  warehouse 

When  monthly  returns  must  be  made  and  tax  paid 

When  spirits  shall  be  drawn  off  in  casks 

When  the  making  of  mash  and  use  of  still  is  prohibited .... 
Within  which  transcripts  of  rectifiers  and  wholesale  liquor 

dealers  books  shall  be  furnished 3318  211 

Title- 
To  real  estate  used  as  distillery  premises,  requirements  as  to .  3262  162 
Tobacco,  manufacturers  of — 

Bond,  certificate,  etc 3355  257 

Inventory,  books,  etc.,  of 3358  259 

Persons  (not  leaf  dealers)  retailing  leaf  tobacco  to  be  re- 
garded as  manufacturers 257 

Record  of 3357  259 

Returns 3357  259 

Sign 3356  259 

Tobacco — 

Affixing  and  cancellation  of  stamps 3369  267 

Authorized  packages  of 3362  263 

Dealers  in  leaf,  books  of 3360  261 

Dealers  in  leaf,  to  render  statement 3359,  3391      261-281 

Drawback  on 3386  276 

Exportation  of,  and  of  snuff  and  cigars 3385,  [3385a]      273,  275 

Farmers  and  growers  of (sec.  69,  act  Aug.  28, 1894) .  27, 35      257,  261 

Forfeited,  etc.,  not  to  be  sold  for  less  than  tax,  but  may  be 

destroyed 

Imported,  to  be  stamped  same  as  domestic • 

Internal-revenue  officer  not  to  be  interested  in  manufacture 

of 

Labels  on  packages 

Laws  imposing  taxes  on,  extended  to  exterior  boundaries  of 

United  States 

Manufactured  by  one  person  for  another  or  on  shares,  affixing 

stamps,  etc 

Manufacturer  of,  defined (act  Aug.  28,  1894) 

Marks  on 

Packages  authorized,  of  tobacco  and  snuff  (act  June  13, 

1898,  amending) 3362  264 

Packages  of,  not  to  contain  any  lottery  ticket  or  indecent 

picture 3394  284 


3369 
3377 

267 
271 

3168 
3364 

80 
264 

3448 

356 

3370 

69 

3362 

268 
256 
263 

INDEX.  505 

Tobacco— Continued.  Section.  Page. 

Packages  other  than  wooden  may  be  used 3362  263 

Peddlers  of.     (See  Peddlers.) 

Perique  may  be  sold  without  tax,  how 3362  263 

Provisions  relative  to  retail  dealers  in  leaf 35  261 

Provision  relating  to  stamps  apply  to  oleomargarine  stamps .  8  296 

Returns,  requirement  in  regard  to 3357,  3358  259 

Sale  of  shorts,  clippings,  etc.,  in  bulk  or  for  export,  without 

payment  of  tax 3362  263 

Scraps  of,  imported 3377  271 

Stamps  for 3369  267 

Stamps  to  be  affixed  and  canceled 3369  267 

Sweepings  of  tobacco  may  be  sold  without  payment  of  tax, 

when 3362  263 

Statement  to  be  furnished  by  manufacturers  of 3355  257 

Tax  on 3368,  [3368a]  265 

Tax  on,  sold  or  removed  without  stamps 3371  268 

To  be  sold  only  in  prescribed  packages,  exception 3363  264 

Wooden  package  of  Cavendish,  plug  and  twist 3362  263 

Wooden  package  of,  for  fine-cut  chewing 3362  263 

Tobacco,  penalties  and  forfeitures — 

Absence  of  stamp  cause  of  forfeiture 3373  269 

Affixing  false  stamps  or  reusing  stamps 3375  270 

Buying,  selling,  or  using  box,  bag,  wrapper,  or  envelope 

which  has  been  emptied  of  tobacco,  snuff,  or  cigars 3376  270 

Customs  officer  permitting  imported  tobacco  to  pass  out  of 

his  custody  without  having  stamps  affixed,  etc 3377  270 

Dealers  in  leaf  tobacco  failing  to  keep  books 3360  261 

Fraud  by  persons  manufacturing  tobacco  or  snuff  on  com- 
mission or  shares  (forfeiture) 3370  268 

Fraudulently    claiming    drawback    on    manufactured    to- 
bacco    [3386a]  277 

Manufacturers  failing  to  put  up  sign 3356  259 

Manufacturers  neglecting  to  print  or  affix  label  to  package.  3364  264 
Manufacturers   neglecting   to   procure  certificate   required 

and  manufacturing  without  giving  bonds 3355  258 

Manufacturers  neglecting  to  deliver  to  collector  the  inven- 
tory, keep  the  account,  or  furnish  abstract  required 3357  259 

Peddler  failing  to  exhibit  certificate  (forfeiture) 3383  272 

Peddling  tobacco,  snuff,  and  cigars  unlawfully 3384  273 

Person  removing  label 3364  264 

Purchasing,  etc . ,  tobacco  not  branded  8r  stamped 3366  264 

Relanding  within  United  States  tobacco  shipped  for  export.  3385  274 
Removing  otherwise  than  as  authorized,   selling  without 

proper  stamps,  making  false  entry  in  books  (forfeiture).. .  3372  269 
Removing    tobacco    or    snuff    from    manufactory    without 

proper  stamp,  selling  unlawfully,  etc.,  by  any  person 3374  260 

Selling  or  offering  for  sale  tobacco  or  snuff  put  up  in  pack- 
ages other  than  those  allowed  by  law 3363  264 

Toilet  preparations — 

Exported.     Drawback  of  internal -revenue  tax  on  alcohol 

used  in  manufacture  of 25  337 

Transcripts — 

Evidence   in   trial   of  indictment  for   embezzling   public 

money 887  413 

From  books,  etc.,  of  Treasury  Department,  when  evidence.  886  413 
From  wholesale  liquor  dealer's  and  rectifier's  books  to  be 

made  monthly 3318  211 

Transfers — 

Of  gaugers 3163  75 

Of  storekeepers 3154,  3163  71,  75 

Of  suits  from  State  courts  to  United  States  courts 643  386 

Transmission  of  stamps — 

By  registered  mail [3446a]  355 

Transportation — 

Of  alcohol  for  denaturation  to  and  from  bonded  warehouses.  3  241 


506  INDEX. 

Travel —  Section.  Page. 

Of  officers  and  employees  to  be  reported  to  Congress  (act 

May  22,  1908) 53 

Trials— 

Of  offenses  begun  in  one  district  and  completed  in  another.  731  385 

Treasurer  of  United  States — 

May  issue  duplicate  check 3646  429 

Tubs  (distillery) — 

Fermenting,  how  fastened,  locked,  etc.,  in  cases  of  suspen- 
sion   3311  206 

Fermenting,  to  be  emptied  at  end  of  fermenting  period 3285  177 

How  to  be  placed,  marked,  secured,  emptied,  etc 3269,      167, 168, 

3270, 3285,  3286       177, 178 
To  be  destroyed  and  material  sold  in  certain  cases  of  for- 
feiture   3332  224 

Worm,  drawing  off  and  cleaning .' 3286  178 

Twenty  gallons — 

Distilled  spirits  not  to  be  purchased  in  quantities  more 
than,  from  a  person  other  than  an  authorized  rectifier, 
distiller,  or  wholesale  liquor  dealer,  except,  etc 3319  213 

U. 

Unavoidable  accident — 

Allowance  for  leakage  on  account  of [33306,  34336]  223 

Relief  from  assessments  in  certain  cases  of [3309«]  204 

Spirits  destroyed  by 3221  117 

Stamps  lost  or  destroyed  by 3315  209 

Suspension  of  work  at  distilleries  caused  by 3310  206 

Unexpended  balances — 

Of  appropriations 3690,  [3690a]  427 

United  States — 

Laws  imposing  certain  internal-revenue  taxes  extended  to 

exterior  boundaries  of 3448  356 

May  purchase  goods  free  of  internal-revenue  tax 3464  367 

Suits  for  recovery  of  duties  and  penalties  to  be  in  name  of. . .     919,  3213      385, 109 

United  States  circuit  and  district  courts — 

Jurisdiction  of 563,  629,  711,  [3148],  3171,  3213     383,  384, 

64, 83, 109 

United  States  Circuit  Court  of  Appeals 395 

United  States  Commissioner — 

Prisoner  to  be  taken  before  the  nearest 403 

Warrants  issued  by 402 

Unfermented  worts — 

Sold  to  other  brewer  for  certain  purposes 3351  253 

Universities — 

Alcohol  may  be  withdrawn  from  bond  for  scientific  pur- 
poses by,  without  payment  of  tax 3297,  [3297«]       197, 198 

Unsafe — 

Warehouse  or  distillery  merchandise  to  be  transferred 3272  169 

Unstamped — 

Instruments,  how  validated r 13,  3422      338,  329 

Useless  papers,  disposition  of (act  of  Mar.  2,  1895) 430 

Use  of — 

Gaugers'  brands  by  unauthorized  persons 3290  181 

Uses — 

For  which  alcohol  may  be  denatured 1      239,  240 

Unstemmed  natural  leaf  tobacco — 

May  be  bought  or  sold  by  any  person 35  261 

Not  subject  to  any  internal-revenue  tax 35  261 


Vacancy — 

In  office  of  collector 3149  66 

Validation  of — 

Instruments  subject  to  tax  not  properly  stamped  when 
issued 13,  3422      338,  329 


INDEX.  507 

Varnish—  Section.  Page. 

Stamp  for  distilled  spirits  to  be  covered  with  a  coating  of . ..  3322  214 
Vehicle — 

Meaning  of,  as  used  in  statutes 4  .58 

Vessel — 

Definition  of 3  58 

Vinegar — 

Conditions  under  which,  may  be  manufactured 3282  176 

Facilities  to  be  furnished  for  examination  of,  manufactur- 
ing establishments 3277  171 

Manufacture  of,  within  600  feet  of  distillery  prohibited ....  3282  176 

Not  to  contain  more  than  2  per  cent  of  proof  spirits 3282  176 

Power  of  officers  to  enter  and  examine,  establishments 3276,  3278  171 

Vintners — 

Exemptions  from  special  tax  in  certain  cases 3246  145 

Violations  of  law — 

To  be  reported  by  collectors  to  district  attorneys 3164  77 

Voluntary  service — 

Accepting,  prohibited 426, 434 

Vouchers — 

In  settlement  of  accounts  of  collector 3211  108 

W. 
"warehouses — 

Bond  for  payment  of  tax » 3293  182 

Bonded  manufacturing (act  Aug.  5,  1909)  23  333 

Central  denaturing 2  241 

Change  of  ownership [3271a]  169 

Collector's  monthly  report  of  articles  in 3444  354 

Custody  of 3274  170 

Declared  bonded  warehouse  and  to  be  under  direction  of 

collector,  in  charge  of  storekeeper 3271  168 

Entry  for  deposit  in 3293  181 

Entry  for  withdrawal  from 3294  185 

Excessive  loss  of  spirits  in 3293,  3294a  182, 186 

For  storage  of  spirits  before  payment  of  tax 3271  168 

Gauging,  stamping,  etc.,  spirits  removed  from 3295  196 

General  bonded  warehouses (act  Aug.  28,  1894)  51-59  189-191 

Manufacturing,  for  articles  intended  for  exportation 333-336 

May  be  discontinued  by  commissioner 3272  169 

Penalty  on  storekeeper  or  other  persons  in  charge  unlaw- 
fully removing  or  allowing  to  be  removed  spirits  from 3300  199 

Stamp.formof 3287  178 

Special  bonded  warehouses (act  Aug.  28,  1894)  [3293a]  183 

Special  bonded  warehouses (act  Mar.  3,  1877)  1-11  192-195 

Special  bond  ed  warehouses (act  Oct.  18,  1888) 195 

Special,  for  denatured  alcohol 1,  3  239,  241 

Spirits  drawn  from  receiving  cistern  to  be  directly  removed 

into 3267,  3287  166, 178 

Spirits  removed  from,  in  violation  of  law 3296, 3299  197, 198 

Storekeepers  under  direction  of  collectors  to  have  charge  of. .  3273  170 

Tax  to  be  paid  before  removal  from 3251  150 

Withdrawal  from,  for  exportation 3330  220 

Withdrawal  from,  for  transfer  to  a  manufacturing  warehouse .  [3433a]  336 
Withdrawal  for  transportation  from  one  general  bonded, 

to  another (act  Aug.  28,  1894)  55  190 

Withdrawal  for  transportation  from  one  special  bonded, 

to  another (act  Mar.  3,  1877)  5  193 

Withdrawal  of  spirits  from,  on  payment  of  tax [3293a]  183 

Withdrawal  without  payment  of  tax  for  other  purposes 

(acts  of  Oct.  1,  1890,  and  June  7,  1900) [3251c]  3464  154,239, 

367,  228 
Withdrawal   without  payment   of   tax  for  scientific   pur- 
poses   3297  [3297a]  197,198 

Warehouse  book — 

To  be  kept  by  storekeeper 3301  199 


508 


INDEX. 


Warrants — 

For  arrest  of  offenders  may  be  issued  by  State  officers 

Of  arrest  for  violation  of  internal-revenue  laws 

Of  distress  against  collectors 3217, 

Of  distraint  may  be  given  by  collector  of  internal  revenue 
to  deputy 

Search  warrants 

Wash- 
Fit  for  distillation 

Water- 
To  be  drawn  off  from  worm  tub  on  demand  of  revenue  officer . 

Addition  of,  to  sweet  wine  intended  for  fortification 

Weights  and  measures — 

Instruments  to  be  prescribed  by  commissioner 

Penalty  for  using  false,  in  ascertaining  quantity  of  distil- 
lery material 

Wholesale  dealer  in  adulterated  butter.     (Act  May  9, 1902.) 

Penalty  for  engaging  in  business  as,  without  paying  special 
tax 

Penalty  for  selling  packages  not  marked  and  branded  as 
required  by  law 

Special  tax  and  definition  of (act  May  9,  1902) 

To  keep  books  and  make  returns  required  by  regulations. . . 

To  sell  only  original  or  from  original  packages 

Wholesale  dealer  in  malt  liquors — 

Brewers  not  required  to  pay  special  taxes  in  certain 
cases If  5 

Certain  sales  of  liquor  not  subjecting  to  liability  as fl  5 

Definition  and  special  tax  of If  5 

Penalty   for  carrying  on   the  business  without    payment 

of  special  tax 

Wholesale  liquor  dealer — 

Book  to  be  kept  by 

Casks  or  packages  filled  on  premises  of,  how  stamped,  etc. . . 

Certain  sales  of  liquors,  not  subjecting  to  liability  to 
special  tax  as If  5 

Distiller  not  liable  as  for  sale  of  spirits  of  his  own  produc- 
tion, etc If  4 

Imported  spirits  filled  on  the  premises  of 

Not  to  purchase  in  quantities  greater  than  twenty  gallons, 
except  from  other  wholesale  liquor  dealer,  rectifier,  or 
distiller,  except  in  certain  cases 

Penalty  and  forfeiture  for  doing  business  without  pay- 
ment of  special  tax 

Penalty  and  forfeiture  for  knowingly  or  willfully  violating 
the  law  relative  to  carrying  on  his  business  where  there  is 
no  specific  penalty  imposed  by  any  other  section 

Special  tax  and  definition  of If  4 

To  put  up  sign 

Transcript  of  book  to  be  made  by 

When  liable  as  a  rectifier Tf  3 

Wholesale  dealer  in  oleomargarine — 

Definition  of 

Penalty  for  failing  to  pay  special  tax 

Special  tax  of (act  of  Aug.  2,  1886) 

To  keep  books  and  make  returns  required  bv  regulations 

(act  May  9,  1902) 

Wholesale  dealer  in  renovated  butter — 

To  keep  books  and  make  returns  required  by  regulations 

(act  May  9,  1902) 

Wife— 

Of  deceased  special-tax  payer  may  carry  on  the  business 

Wine  gallons — 

Basis  of  taxation  in  case  of  fermented  liquors 

Tax  on  distilled  spirits  to  be  collected  on,  when  below  proof. 
Wines  fortified.     (See  Fortification  op  wines.) 
Wine  spirits.     (See  Distilled  spirits.) 


Section. 

1014 

19 

3625,  3633 

Page. 

389 

402 

112,  408 

3188 
3462 

98 
365 

3247 

149 

3286 
43 

178 
229 

3249 

149 

3306 

202 

3242c 


132 


4 
4 
6 
4 

301 
143 
304 
301 

3244 
3244 
3244 

140 
140 
140 

[3242a] 

131 

3318 
3323 

211 
214 

3244 

140 

3244 
11 

136 

227 

3319 

213 

[3242a] 

131 

3456 
3244 
3279 
3318 
3244 

361 
136 
172 
211 
134 

3 

[32426] 
3 

142 
132 
142 

304 


3241 

130 

539a] 
3251 

248 
150 

INDEX.  509 

Wines —  Section.  Page. 

Fortification  of,  with  brandy 42  '228 

Fortified  with  spirits  free  of  tax  not  be  used  in  rectification . .  6  234 
In  which  artificial  sweetening  has  been  used  may  be  used  in 

distillation  of  brandy (act  Mar.  2,  1911) 155 

Shipping  under  false  name  or  brand,  penalty 3449  356 

Tax  on  imitation 3328  217 

Vintners  not  liable  to  special  tax  for  selling,  of  their  own 

growth,  at  place  where  made,  etc 3246  145 

Withdrawal — 

From  bonded  manufacturing  warehouse 23  333 

Free  of  tax  for  use  of  United  States  may  be  transferred  by 

i    pipe  line  from  cistern  to  tanks,  etc 3287  179 

From  warehouse  for  exportation 3330  [3330a]  220,  221 

From  warehouse  for  scientific  purposes 3297  [3297a]  197, 198 

From  warehouse  for  transfer  to  manufacturing  warehouse . . .  3433  334 

From  warehouse  for  use  in  fortification  of  wines 45,  46  230-232 

From  warehouse  on  regauge [3293a]  183 

Of  fruit  brandy  from  special  bonded  warehouse 5  193 

Of  spirits  for  denaturation 1  239,  240 

Of  spirits  from  warehouse  on  payment  of  tax 3294  185 

Of  spirits  free  of  tax  for  use  in  manufacture  of  sorghum  sugar.  [3251c]  154 

f        Wine  spirits  for  fortification  of  pure  sweet  wine 45  230 

^Witnesses — 

Competency  of 858  389 

Defendants  in  criminal  cases  can  be (act  Mar.  16,  1878) 389 

In  matters  relating  to  claims,  how  subpoenaed 184  423 

Officers  not  allowed  fees  as 850  436 

Words — 

Meaning  of  certain,  as  used  in  statutes 1-5  58 

Worm  (distillery) — 

Manufacturers  of,  special  tax \  2  3244  133 

Special  tax  on If  2  3244  133 

Tanks,  space  around,  and  elevation  of 3269  168 

Tax  on,  to  be  paid  by  stamp 3238  120 

To  be  destroyed  in  certain  cases  of  forfeiture,  and  material 

sold 3332  224 

Tubs,  cleansing  and  examination  of 3286  178 

Worts- 
Fit  for  distillation,  restrictions  on  production  of 3247,  3282  149, 175 

Not  to  be  made  Sundays 3283  177 

Unfermented,  sold  by  one  brewer  to  another,  how  taxed. . .  3351  253 

Written  consent — 

Of  owner  of  fee  in  case  of  distiller 3262  162 

Writs  of  error — 

No  bond  required  of  United  States 1001  397 

To  circuit  courts  of  appeals 396 

To  Supreme  Court 699, 1008  395,  396 

Writs  of  execution — 

Upon  judgments 916,  986  393,  413 

O 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 

Los  Angeles 

This  book  is  DUE  on  the  last  date  stamped  below. 


NO  PHON  ■  RENEWALS 


MAY  1 8 1987 


UNIVERSITY  of  CALIFORNIA 

AT 

LOS  ANGELES 

LIBRARY 


3  1158  01197  7815 


UC  SOUTHERN  REGIONAL  LIBRARY  FACILITY 


AA    000  562  365    7 


